Industry executives and experts share their predictions for 2026. Read them in this 18th annual VMblog.com series exclusive.
By David Greschler, CEO and Co-Founder at NomadGo
Artificial intelligence (AI) has evolved from a promising technology into a proven engine for smarter decisions and measurable business outcomes.
Across industries, organizations are using AI to interpret data, anticipate demand, and streamline operations. From predictive analytics in restaurants or retail to automation across the supply chain, AI is an expectation for business operations. Recent surveys show that 77 – 88% of companies are already using or planning to use AI within their operations. As adoption accelerates, the conversation has shifted. Businesses are now focused on how quickly they can deploy AI in ways that are scalable, resilient, and capable of delivering real-world results.
In 2026, two major trends stand out as transformative: the convergence of physical and digital AI, and the rapid adoption of on-device AI. Together, these trends represent both technical and strategic opportunities for organizations.
The Convergence of Physical and Digital AI
For years, businesses have operated physical and digital environments as separate entities. In retail, for example, online channels captured clicks, searches, and abandoned carts, while brick-and-mortar locations relied on point-of-sale systems, manual inventory checks, and delayed reporting. This disconnect created gaps, limiting an organization’s ability to understand demand holistically or respond quickly to changing conditions.
As AI systems converge, those barriers begin to disappear. Unified AI systems will connect customer behavior, inventory levels, and demand across both digital and in-store environments. Imagine connecting online browsing trends with live shelf data, so you know exactly what customers want and where stock is running thin. By merging the data streams, businesses gain real-time visibility into customer intent and product availability.
This convergence relies on infrastructure that spans cloud, edge, and endpoint environments. AI models gather data from IoT sensors, mobile applications, robotics and automation systems, and enterprise platforms to create a single, cohesive view of operations. The impact of this unified approach is tangible:
- Smarter inventory management: AI anticipates demand shifts and dynamically balances stock across locations.
- Improved operational efficiency: Teams can be deployed where they are needed most, reducing waste and improving customer service.
Adopting unified AI systems represents a strategic shift. Organizations that unify physical and digital intelligence will be better positioned to deliver seamless experiences and adapt quickly to market changes with greater resilience.
The Shift Toward On-Device AI
The second trend shaping 2026 is the rise of on-device AI. Until recently, AI workloads depended heavily on the cloud, introducing latency, connectivity constraints, and growing cost and privacy concerns.
Advances in model optimization and hardware acceleration are changing that. Smartphones, tablets, kiosks, and wearables can now run AI models locally, without reliance on the cloud. Often they are focused on specific areas of knowledge, so do not need the processing power requirements that foundational models need. Also, these devices are getting increasingly powerful with every release. GPUs, CPU and neural engines are now standard on most smartphones and tables.
On-device AI delivers clear benefits:
- Instant results: Eliminating cloud latency means faster decisions in the moment.
- Enhanced privacy: Sensitive data remains on the device, supporting compliance and user trust.
- Offline support: AI continues to function even if connectivity is poor or not available (the case in many retail and food service environments).
Keeping AI processing on-device also reduces dependence on energy-intensive data centers and minimizes unnecessary data transfer. The result is a lower environmental impact while providing businesses with fast, reliable, and highly accurate inventory intelligence.
For businesses, on-device AI offers a personalized experience delivered directly to user devices while providing real-time insights in remote or constrained environments.
Looking Ahead
Together, the convergence of physical and digital AI and the rise of on-device AI signal a new era of business growth. The organizations that will succeed are those that move beyond isolated AI initiatives and embed intelligence into every layer of their operations.
The future of AI is not confined to the cloud or the screen. It is shaping every decision that drives the business forward. 2026 will be the year when AI-powered systems move from POCs and support the business to becoming the foundation for how businesses operate.
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ABOUT THE AUTHOR
David Greschler is a serial entrepreneur with over 30 years of experience building and leading successful tech ventures, including Softricity (acquired by Microsoft). As CEO and co-founder of NomadGo, he is transforming inventory management through AI, spatial vision, and augmented reality to make the process faster, more accurate, and easier to use. Known for his strength in product strategy and go-to-market execution, David holds seven patents and has a track record of launching category-defining innovations that simplify complexity and drive real-world impact.
