AI bubble burst? New research suggests 2026 will be make or break year for business leaders

Tech Show London, the UK’s leading technology event from CloserStill Media, has unveiled new research highlighting a growing disconnect between the surge in AI investment and organisations’ confidence in implementing it strategically.

The research found that 73% of UK businesses invested more in AI and AI-enabled technologies in 2025 compared with 2024, spending an average of £75,000 on AI during 2025 alone.

Encouragingly, some organisations are taking proactive steps – establishing clear ownership for implementation and integrating new technologies responsibly and effectively. Almost one in five (18%) report that a CTO, CIO or dedicated technology function now holds primary responsibility for ensuring the ethical and trustworthy use of AI.

However, while just 8% of leaders say they have no AI workforce strategy in place, the research suggests that many existing strategies struggle to gain traction in practice, particularly when it comes to maintaining employee trust (32%).

Over the past 12 months, businesses across the UK have reshaped teams in multiple ways. Nearly two in five (39%) retrained employees to adapt to new technologies, while 34% hired or created new roles requiring AI and data skills. At the same time, almost a quarter (24%) reduced headcount to cut costs and/or drive efficiency, and 23% reduced junior or entry-level hiring as automation replaced tasks. Leaders are clearly attempting to prepare for a future where humans and AI systems work more closely together – although the transition remains complex and uneven.

The key questions now are whether AI investment is being effectively targeted, whether a correction or “bubble burst” may follow, and what business leaders should prioritise to ensure their technology strategies deliver real value in 2026.

Former Dragon’s Den star and Executive Chairman & Co-Founder of Implement.AI, Piers Linney MBE, warns that 2026 will be a “make or break year” for getting AI strategy right. The research shows leaders recognise the vast potential of AI and are eager to unlock its benefits, but “must balance the speed of adoption with mindful, structured implementation.”

Simon Press, Senior Portfolio Director at Tech Show London organiser CloserStill Media, echoed the sentiment, commenting: “AI has moved firmly from hype to hard reality. UK businesses are not just talking about transformation – they are funding it. But with technology evolving at unprecedented speed, leaders need clarity, confidence and credible insight to avoid wasting time, money and talent.

“The findings are a stark reminder of the value of breaking out of echo chambers, identifying hidden knowledge gaps critical to informed decision-making, and understanding the financial downside of ignoring them.”

Against a backdrop of rapid investment and mounting pressure to get AI right, business leaders need access to practical insight, credible expertise and proven best practice. That is why Tech Show London is expected to be its most important edition yet.

Taking place from 4–5 March 2026 at ExCeL London, the event will bring together Cloud & AI Infrastructure, DevOps Live, Cloud & Cyber Security Expo, Big Data & AI World, and Data Centre World. Confirmed speakers include Piers Linney, Professor Hannah Fry, Baroness Martha Lane Fox and Louis Theroux.

Tech Show London is free to attend for end-user professionals. Book now at www.techshowlondon.co.uk to secure your place.