Industry executives and experts share their predictions for 2026. Read them in this 18th annual VMblog.com series exclusive.
By Prasoon Saxena, Global President and Co-Lead, Product Industries, NTT DATA
As artificial intelligence reshapes every industry, the organizations that thrive in 2026 won’t be those chasing every new algorithm – they’ll be the ones modernizing boldly, securely, and from the inside out. Modernization isn’t a technical upgrade. It’s the foundation for responsible, sustainable innovation.
Modernization Is No Longer Optional
According to research by the Manufacturing Leadership Council (MLC), a division of the National Association of Manufacturers (NAM), 60% of manufacturers see digital transformation as something that is redefining the industry.
For too long, modernization has been seen as a cost center or a technical chore. Today, it’s the essential bridge that allows people and intelligent systems to work together safely and effectively. As AI systems evolve toward greater autonomy – those that sense, decide and act in real time – organizations need modern architectures that amplify human judgment, not replace it. You can’t run dynamic, human-in-the-loop systems on outdated middleware or fragmented data infrastructures.
In manufacturing, where talent gaps are widening, businesses can’t rely solely on human labor. One company I worked with avoided the trap of “rip and replace” by building a flexible digital core that integrated legacy systems gradually. This measured modernization approach unlocked predictive services, ensured operational continuity and kept humans in the loop. The lesson is clear: you don’t modernize after innovating – you modernize to make innovation possible.
Redefining Resilience
Resilience used to mean recovery – getting systems or supply chains back online after disruption. That definition no longer fits. The most resilient enterprises now treat turbulence as a catalyst for reinvention. They embed agility into their operations, so the challenge becomes inflection points, not setbacks.
This shift is already playing out in the real world. Consider a global beverage manufacturer I spoke with recently. Facing market volatility and uneven digital maturity across its facilities, the company implemented unified operational models and standardized processes across more than a dozen sites. The result? AI-assisted product deployment, smarter supply chain decisions, and a more adaptive enterprise. Recovery and reinvention-simultaneously. That’s resilience, redefined.
The Rise of More Useful Agents and the U.S. Lead in Private AI Investment
According to the Stanford AI Index 2025, “AI agents show early promise,” the shift from chatbots to autonomous and semi-autonomous agents marks one of the most significant leaps in applied AI since the emergence of large language models. These new agents aren’t just conversational. They’re goal-oriented systems capable of reasoning across tasks, connecting data silos, and acting in real-time.
In manufacturing, logistics, and finance, we’re already seeing multi-agent ecosystems where digital co-workers handle routine decisions, freeing human teams for higher-value tasks. For NTT DATA clients, this trend means accelerating productivity and service quality while embedding human-in-the-loop oversight to ensure trust and control.
On the investment front, U.S. private AI investment reached $109 billion in 2024, more than doubling that of the next closest region. This isn’t just a number – it’s a signal of strategic prioritization. Capital is flowing into foundation model innovation, agentic automation and applied AI platforms.
More importantly, it reflects a broader transformation: enterprises are no longer simply adopting AI tools; they’re building intelligent ecosystems around them. By integrating modernization, responsible data practices, and deep domain expertise, they’re unlocking long-term value.
Yet, as a recent MIT NANDA AI Study found, 95% of organizations report zero measurable return from AI initiatives. This underscores a widening execution gap between AI enthusiasm and enterprise readiness. The differentiator in 2026 will be integration: companies that pick one or two high-impact workflows and connect AI end-to-end will see more measurable impact on business growth.
AI Without Governance Equals Risk
In NTT DATA’s 2025 research, we published our Global GenAI Report, an independent study of 2,300+ senior decision-makers across 34 countries and 12 industries. The research revealed a growing disconnect that while C-suite leaders are accelerating AI adoption, governance and oversight are lagging-creating operational and reputational risk.
In June 2025, we expanded on this with “The AI Security Balancing Act: From Risk to Innovation,” which highlighted the widening disconnect between rapid GenAI rollouts and cybersecurity readiness and called out the urgent need for co-built guardrails, auditability, and accountability embedded in platforms from day zero. Security isn’t an add-on, it’s a design principle.
Predictions for 2026
- Core-first innovation wins. High-impact core operations first; targeted AI use cases follow and scale faster.
- Agentic systems become real. Early deployments will sense, decide and act in semi-autonomous loops across logistics, routing and field operations.
- Security architects take center stage. Governance, auditability and accountability move into platform design from day zero.
- Ethical foundations matter more. As predictive and autonomous AI scale, trust will depend on transparency, fairness and traceability.
The competitive divide in 2026 won’t be defined by who adopts AI the fastest; it will be shaped by who modernizes most responsibly.
Enterprises that embed security, governance and ethical design into their innovation strategies will scale with confidence and resilience. Those that treat these elements as afterthoughts will find themselves stalled, exposed and outpaced.
##
ABOUT THE AUTHOR
Prasoon Saxena is president of the Manufacturing and Commercial Industries Business Unit for NTT DATA. In this role, he is responsible for profitable growth, industry strategy and client satisfaction through modern, innovative solutions. With more than two decades of global leadership, Prasoon is intensely passionate on driving value, innovation and trust while delivering on business outcomes for his clients. Prasoon has extensive experience in Telecom, Media, High-Tech and Professional Services Industries. Prior to joining NTT DATA, Prasoon held leadership positions with Dell Services and Wipro Limited.
