Industry executives and experts share their predictions for 2026. Read them in this 18th annual VMblog.com series exclusive.
By Philip Dutton, CEO & Co-Founder, Solidatus
As organisations head into 2026, one reality is becoming unavoidable: the velocity of regulatory change, combined with the rapid commercial adoption of AI, is placing unprecedented pressure on data ecosystems. The modern enterprise is no longer judged simply on whether it can store and process information, it is judged on whether it can explain it. From financial services to cloud infrastructure to AI-enabled decision-making, every major technology trend now hinges on the integrity, traceability, and accountability of data.
Against this backdrop, four major shifts are set to redefine how organisations govern, operationalise, and commercialise their data in 2026.
1. Expect to see regulation moving from proof to proactivity over the next 12 months
2026 will see regulators expect not just evidence of compliance, with frameworks like DORA, BCBS 239, and AI transparency mandates, but real-time operational resilience. In a similar vein, you won’t get away with saying �we think EU data stays in the EU’, you’ll be expected to show it, with lineage that is jurisdiction-aware by design.
Data lineage will therefore continue to evolve from a static compliance requirement into a live operational control system that demonstrates how data supports financial stability, risk management, and AI oversight on an ongoing basis. The winners will be the organisations that can open a single blueprint and see, in seconds, which data sets are impacted by different regulations, new local rules or a sovereign cloud migration.
2. Effective AI is going to hinge on the trusted data underneath
In 2026, �explainable AI’ is going to mean �explainable data’. Regulators won’t just ask what a model did, they’ll ask which data made it behave that way and who changed that data last.
And as AI becomes embedded in decision-making, the C-level are going to be demanding more explainability. The ability to trace AI inputs and outputs across data pipelines is going to define trustworthy AI. Lineage will therefore become the new audit trail for AI ethics, accountability, regulatory assurance etc.
3. Data governance is going to become federated
The era of centralised governance teams dictating rules is going to come to an end in 2026. The most successful organisations will distribute ownership, embedding governance accountability within business teams. This “federated lineage” model which is already emerging in advanced banks, will balance control with agility and scale over the next 12 months.
4. Data lineage is going to become the commercial differentiator
This one might sound self-serving, but I really believe that what began as a compliance necessity is becoming a strategic asset and that firms in the financial space are going to be using transparent, metadata-driven data ecosystems to monetise trust, accelerate partnerships, and create richer client experiences. For me, the next wave of data leaders will compete not on who has the most data, but on who can prove its integrity, provenance, value etc.
Closing Thoughts
Taken together, these four shifts point to a fundamental evolution: data lineage is moving from a back-office compliance artefact to the connective tissue of modern digital organisations. As AI becomes deeply embedded in business operations and regulation intensifies worldwide, companies will need to demonstrate, not merely assert, that their data is trustworthy, well-governed, and ethically managed.
2026 will reward the organisations that treat transparency as a feature, not an obligation. Those who invest in real-time lineage, federated governance, and explainable data will not only meet regulatory expectations but gain a decisive commercial advantage.
Taken together, we’re seeing a clear evolution: data lineage is no longer just a compliance checkbox, it’s becoming the connective fabric of modern digital organisations. As AI is embedded deeper into business processes and global regulations grow more stringent, it’s no longer enough for companies to claim their data is trustworthy – they must prove it.
Transparency is becoming a differentiator. Organisations that prioritise real-time lineage, federated governance, and explainable data will not only stay ahead of compliance demands but gain a decisive competitive edge.
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ABOUT THE AUTHOR
Philip Dutton, CEO & Co-Founder, Solidatus
Philip Dutton is the CEO and Co-Founder of Solidatus, the data lineage company used by global financial institutions, regulators, and large enterprises to build transparent, trusted, and well-governed data ecosystems. With more than two decades of experience in data strategy, digital transformation, and financial services, Philip is a recognised industry voice on operational resilience, regulatory innovation, and the future of data governance.
