tech
December 30, 2025
VCs predict enterprises will spend more on AI in 2026 — through fewer vendors
Enterprises have been experimenting with AI tools for a few years. Investors predict they will start to pick winners in 2026.
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TL;DR
- A majority of surveyed enterprise-focused VCs predict increased enterprise AI budgets in 2026.
- This budget increase is expected to be concentrated, with enterprises spending more on fewer contracts.
- Enterprises will move from testing multiple tools for single use cases to rationalizing overlapping tools and investing in proven AI technologies.
- The overall enterprise AI spending landscape is expected to narrow to a handful of vendors.
- Spending will increase on AI tools that enhance safety and oversight for enterprise use.
- Key areas for enterprise AI spending in 2026 include strengthening data foundations, model post-training optimization, and tool consolidation.
- Startups with hard-to-replicate products, vertical solutions, or those built on proprietary data are likely to grow.
- Startups with products similar to those offered by large enterprise suppliers may see pilot projects and funding dry up.
- VCs identify proprietary data and non-replicable products as key indicators of an AI startup's moat.
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