tech
January 2, 2026
In 2026, AI will move from hype to pragmatism
In 2026, here's what you can expect from the AI industry: new architectures, smaller models, world models, reliable agents, physical AI, and products designed for real-world use.
TL;DR
- AI focus shifts from large models to practical applications in 2026.
- Smaller, fine-tuned language models (SLMs) will become more prevalent due to cost and performance advantages.
- World models, which learn from 3D space interactions, are expected to advance significantly, with potential impacts on gaming and robotics.
- Agentic workflows are poised to become practical with standardization efforts like the Model Context Protocol (MCP).
- The narrative around AI is shifting from automation to augmentation, with an expectation of new job creation in AI-related fields.
- Physical AI applications, including robotics, autonomous vehicles, and wearables, are expected to enter the mainstream.
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