Firstly, consumerisation is transforming how AI technologies are adopted. Over the past several years, AI capabilities—such as natural language understanding, real-time translation, and generative content creation—were mostly confined to desktop applications or cloud services used by businesses. But, in 2026, we are entering an era where these capabilities are becoming deeply embedded in everyday consumer experiences. Voice assistants are becoming more sophisticated, on-device AI is standard on smartphones, and consumer apps now rely on AI for everything from immersive Augmented Reality (AR) to personalised health insights. Consumers are no longer passive users; they actively expect smart, adaptive, and predictive functions in the products they buy.

This change is not simply cultural—it’s economic. Device manufacturers see clear value in differentiating through intelligent features, and consumers are willing to pay premiums for devices that offer genuinely useful AI. This creates a feedback loop: as more consumers use AI-enabled products, demand grows for even more advanced and responsive models tailored to personal use.

Secondly, physical devices are rapidly becoming the primary interface for AI interaction. AI is moving out of the cloud and into the “edge” of the network—meaning smart sensors, wearables, robots, vehicles, and other physical endpoints. This trend is fuelled by the limitations of remote processing: latency, privacy concerns, and bandwidth costs. Users want instant responses and secure processing of personal data. For example, AI in wearables can monitor health signals in real time; in smart home devices, it can optimise energy use and anticipate needs; and in autonomous systems, such as delivery robots or drones, it must make decisions locally without connectivity delays.

As more hardware incorporates AI cores and accelerators, these devices become platforms for continuous learning and adaptation, enhancing user experiences and enabling new use cases. The physical world becomes the AI playground, and innovations are judged not only by accuracy but by real-world responsiveness.

Finally, computer hardware is essential to sustaining accelerated AI growth. Advances in specialised processors, such as AI accelerators, neuromorphic chips, and quantum co-processors, are unlocking performance gains that cloud-only infrastructures can’t match. In 2026, hardware development is no longer just about higher clock speeds or more cores; it is about efficiency, parallelism, and real-time inference. This shift matters because AI workloads, especially generative and multimodal models, require enormous processing power. Companies that deliver chips optimised for AI tasks are enabling devices to run sophisticated models locally, vastly reducing reliance on remote data centres.

Moreover, the semiconductor industry is responding to these demands with renewed investment in lithography, memory technologies, and chip design tailored for AI. This hardware evolution is critical: without it, the consumer-facing and device-embedded AI experiences of 2026 wouldn’t be feasible.

In summary, 2026 marks a turning point where AI growth hinges on making intelligence personal (consumerisation), bringing it into the physical world (devices), and equipping it with the performance it needs (hardware). These forces together redefine how AI impacts our daily lives, turning it from a cloud-centric service into a pervasive, embedded, and indispensable part of the human experience.

by Paul Bevan – Tech Industry Forum STAR Group advisory council member

Contact us, if you want to know more, at our contact us page, or email [email protected]

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According to the Tech Nation 2025 report, the UK tech ecosystem and digital economy is now valued at around 1.2 trillion US dollars, making it the largest in Europe and more than double the combined value of France and Germany.  London accounts for almost 60 percent of that value. 

Our UK government has established a comprehensive national strategy for technology and AI, primarily driven by the Department for Science, Innovation and Technology (DSIT), focusing on economic growth, public service transformation, and safety.  We hope they can execute on their plans and promises.

What’s the backdrop?  We all know we are living through a new tech era. ChatGPT was launched in November 2022, and so here we are 3 years in, and surprisingly to me we are only just coming our of the experimentation phase and going operational with real ROI from AI.  It’s taking longer than I expected, but the potential is significant.   

Research shows over 50% of companies are increasing their investment in AI and automation and the key targets are automating complexity, and accelerating decision-making.

We’ve also seen the downside of AI too, as the bad actors can use the same AI tools to get more sophisticated in their attacks.  We’ve seen major companies like M&S, Jaguar Land Rover, some NHS Trusts, and the Coop all being hit massively.  It’s down to all of us. Every company has to do a proper risk assessment, and understand their vulnerabilities so they can put things in place to grow their business whilst protecting their reputation, their brand, and their customers.

We are just coming out of a period of uncertainty around employers paying more national insurance,  and what extra taxes would or wouldn’t be in the recent budget.  That has lead to poor jobs numbers, but the likes of ManpowerGroup suggest a positive shift in UK hiring intentions for Q1 2026, signalling increased demand for workers.  They are talking about more opportunities in Digital, Adult Social Care, Housebuilding, and Engineering. 

We definitely need properly trained people in new jobs, but we all need to upskill our existing staff significantly too – the World Economic Forum puts it at 59 percent of the workforce.

For me tech themes that will shape business in 2026 and beyond are AI, cloud infrastructure, and the way that tech changing future of work.   That should guide you on where to invest in R&D.  

What about major tech giants—Microsoft, Google (Alphabet), Amazon, Meta, and Apple—are currently engaged in an unprecedented spending race.  Collectively they’re projected to have spent over $400 billion this year on AI infstructure , and have announced $600 billion more next year.  That’s why there’s been talk of an AI bubble, but I don’t see that bubble bursting. There may well be some corrections, but I’m optimistic – I believe we’ve learned from the dotcom era.  

You can find the replay of our most recent Transformation In Action webinar on our new streaming platform.  It’s a discussion of the imperatives for 2026.  I asked our three speakers what excited them most about the next year in tech?

Emma Dennard of OVHcloud talked about the digital sovereignty opportunity.  She worried that the UK are sitting on the fence, but in the EU counties, and particularly the Nordics it’s key issue and so a differentiator for them.

Paul Bevan, who is one of our STARs, our strategy, advisory, and research council, was keen to see the reality of the growth in new data centres.  He wants to see spades breaking ground.  There is no doubt that the 2026 demand for AI capacity in the data centre will exceed the our capability and time to market for the physical infrastructure we need.  It’s a challenge.   

Finbarr Joy, CTO advisor to Superbet and others believes we’re in a state of flux, and it genuinely feels like 1999 again.  He recognised that could mean boom or bust like the dotcom era, but he’s optimistic, and believes the successive waves of new initiatives have made people more engineering driven, and that’s a good thing.  

In one of our interview shows I spoke with Robert Whiteside of EmpowerRD talking about their recent research on UK innovation. He was excited that the entrepreneurial spirit of the UK shone through with great energy and spirit.  He believes, and I agree with him, that the biggest opportunity for tech in the UK is the application layer – we may be able to innovate in chips, we may be able to innovate in data, but that’s going up against the big companies and hyperscalers we mentioned earlier.  But as an industry, we can compete on software.  2 guys or gals with an idea can still start in a shed and build something huge, and tools like AI will help them grow faster.

And I’ll finish on a recent AWS Software Company Competitiveness Index report where I was asked  to write the foreword.  One of the findings was that cloud adopters compared to cloud experimenters were more likely to be growing, and that cloud-first companies are two times more likely to exceed expectations on valuations.  

So my 3 messages for 2026 are:

• Upskilling your team is essential
• The application layer is our UK tech sector’s opportunity
• And cloud infrastructure, and cloud native are both good for business and company value.

Tech Industry Forum and I wish you seasons greetings, and all the best for a fantastic 2026!

by David Terrar, CEO Tech Industry Forum

Use our contact page or email [email protected] if you want to know more about what we do. 

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But, for IT teams, this could be a blessing in disguise. To date, siloed thinking — between teams, systems, and data — has become one of the quietest yet most persistent barriers to rapid and sustained progress in moving GenAI and Agentic AI pilots into widespread production. Potentially, while there is a pause in the headlong development and deployment of new AI capabilities, IT leaders across industry will have a unique window of opportunity to make their businesses ready to take advantage of the potential offered by AI, in all its forms. 

For a number of years concepts like Minimum Viable Product (MVP), new software technologies such as containerisation, micro-services, and DevOps development practices, have all contributed to a sense that “speed is good”. This has worked well for “cloud native” start-ups who are not constrained by a complex web of legacy applications and sprawling business processes. But speed is still good for established organisations; nobody want to return to the era of multi-year software development projects where no actual application code was written in the first year (Note: back in the 1980s I witnessed that first hand). However, we are now starting to get first-hand accounts of problems being encountered in such areas as using AI coding. This LinkedIn post by Gregory Smith is particularly insightful, based on his hands-on experience of using AI coding. I know Gregory well and I can attest to his technical competency, systems thinking capability and his integrity. He found that, if you don’t think about the architecture up front you can end up with code that is hard to scale or maintain, creating new tech debt. The point he is making is really about the need to ensure that while speed is good, producing something that is sustainable is better. 

Over the last year, Salesforce has spent a lot of time and effort into understanding how to develop and scale Agentic AI systems. This summary of their findings by Srinivas Tallapragada, its President and Chief Engineering and Customer Success Officer, is a useful primer for organisations looking to develop Agentic AI. Before you start, take heed of this comment from him. “The shift to agentic AI isn’t just technological — it’s also cultural, operational, and organizational. You can’t simply build an agent, ship it, and expect it to work at scale. Be under no illusion. AI will impact your business and your markets in profound ways, some of which we can’t even envision yet. There are still many questions about AI that need answering: are LLMs the way forward or will SLMs and new models take centre stage; is Artificial General Intelligence (AGI) ever going to be a realistic proposition; will brand new hyperscale AI data centres actually be needed or will processing increasingly move to the Edge. I aim to revisit these questions and more in future blog posts. Much of the change will require a complete reset, of your business models, your systems and your culture. You need to be getting your organisations AI ready now. The world won’t change on 1^st January 2026, and you may not spot the signs of change straight away. But that is no reason for you to delay preparing for the reset now. 

by Paul Bevan – Tech Industry Forum STAR Group advisory council member

Contact us, if you want to know more, at our contact us page, or email [email protected]

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The fourth member is Professor Sue Black OBE. Her website https://sueblack.co.uk/

Sue started BCSWomen, the UK’s first online network for Women In Tech, back in 1998. I met her around 2007 when social media was opening up for business, and she was already in the vanguard of social media influencers with her brilliant, successful campaign to save Bletchley Park. As of today she is a multi-award winning technology evangelist, a champion of Women in Tech and STEM subjects, and a Professor of Computer Science at Durham University. 

Sue becomes a lifetime member of TIF, and joins Richard Simon, Paul Bevan, and Andrew McLean to add her perspectives to our advisory council. With a background in computer science, coaching, consulting, and speaking, added to her experience of the evolution of social media, and the causes that she champions, we are really looking forward to her help and input. 

Contact us, if you want to know more, at our contact us page, or email  [email protected]

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Tech Industry Forum’s live stream shows, replay shows, events, virtual events, and virtual conferences are now collected together in a new streaming platform home – see the Stream & Events tab at the top of this page. That subdomain covers our fortnightly Tech Leadership Advantage (TLA) video/podcast interview shows, our Transformation In Action (TIA) monthly webinars that just restarted, and any in person meetings, online meetings, or virtual conferences we plan from now on. It also includes all of our 2025 shows so far as replays.

One place where you can view new shows, replay previous shows, and register for upcoming shows. Once registered, the new platform gives you access to our whole catalogue, reminds you if you booked on to a show, and during the broadcast allows you to ask questions, chat, or vote in snap polls. All of our speakers are listed, with their bios, LinkedIn profiles, and other social channels. All of our show and event schedule in one place, and we hope it helps build engagement and connections within our membership community. It will be easier for you to find good content, and relevant stories, and it will make it easier for us to share audience details with contributing TIF members.

So far the reaction has been really positive. What do you think? Give us feedback and suggestions at [email protected]  

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Richard Simon – is a well-known cloud native and open source advocate, who is experienced, respected, versatile, and opinionated! He is CTO of T-Systems, but also a content creator with his Cloud Therapist YouTube channel. 

Paul Bevan – who’s background started with the mainframe, and he’s been in the sector through all of the shifts and disruptions to now. He’s both an an experienced IT marketer and a tech analyst, describing himself as poacher turned gamekeeper. Most recently he was a research director for Bloor Research, and we plan to keep him out of full retirement.  

Andrew McLean – Tech influencer, producer, broadcaster and Managing Director at Disruptive LIVE, who are our core partner for creating live streams, shows, and virtual events. His technical background includes being co-founder of AppLayer, but he also has a Masters in neuroscience and psychology. 

Their in depth experience, varied expertise, and differing technology perspectives combine together to give the strategic input and guidance that we need. They’ve all been made lifetime TIF members too. We hope to announce more members of the group very soon. 

For more information use our contact page, or email [email protected]

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Navigating Sovereign Cloud in Europe: Strategic Considerations for Cloud Transition and Compliance

The whitepaper discusses:

• How European digital sovereignty is reshaping the future of cloud
• How the competitive landscape is shifting as new compliance frameworks accelerate the race for operational independence, regulatory certainty, and digital trust.
• The accelerating pace of European data protection regulations, from GDPR to the new EU Data Act and DORA, is driving radical changes in cloud strategy and procurement.
• How interest in the sovereign cloud marketplace is exploding
• What does “sovereign compliance” really mean in practice, and where are the pitfalls that can lead to regulatory penalties or market exclusion
• Which technical and governance choices differentiate leaders from laggards in sovereignty assurance?
• How the EU AI Act will affect all of this, and more.

Please go and check out their report on an increasingly important topic that touches on control of data and infrastructure, ensuring compliance with national laws, and protecting sensitive information from foreign access or surveillance.

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https://www.empowerrd.com/uk-innovation-report-2025/

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Canopy is redefining how organisations procure and manage cloud services, bringing transparency, speed, and savings to a sector facing mounting financial and operational complexity. As cloud adoption deepens, many businesses are struggling to control escalating costs and navigate multiple cloud providers at once. Canopy combines expert contract negotiation, FinOps (cloud financial operations), and technical advisory services to help organisations accelerate deal cycles, optimise spend, and extract greater value from their cloud investments leveraging best practices for hybrid, multi-cloud, and vendor-neutral deployments.   

With over 100 years of combined leadership experience from companies like AWS, Stripe, Barclays and IBM, Canopy’s team has delivered savings for customers around the globe. Canopy helps companies to reduce deal cycles from six months to under two, and saves customers on average 10-20% on their cloud bills, while remaining fully independent and aligned with the interests of buyers, not vendors.

“I’m thrilled to join the Tech Industry Forum at such a pivotal moment for the UK technology sector,” said James Marks, Founder, Canopy. “We believe that collaboration and open dialogue are essential to driving innovation and fairness in the cloud market. The Forum brings together the brightest minds and most forward-thinking organisations in our industry, and I’m excited to contribute our expertise in cloud procurement, FinOps, and technical strategy to this vibrant community. By working together, we can help shape a more transparent, competitive, and customer-centric cloud ecosystem; one that empowers businesses of all sizes to thrive.”

Canopy’s membership also reinforces its broader commitment to openness and responsible innovation, as demonstrated by its work with the Open Cloud Coalition, advocating for more interoperable, fair, and competitive cloud markets across the UK and EU. “We are delighted to welcome Canopy to the Technology Industry Forum,” said David Terrar, CEO, Technology Industry Forum. “Its unique approach to cloud procurement and spend optimisation brings valuable insight and expertise to our community, especially as organisations grapple with the rising costs and complexity of the cloud.”

About Canopy:

Canopy is a forward-thinking vendor-agnostic cloud services broker committed to delivering cloud solutions to fit all customer’s needs. Whether you are looking for data sovereignty, resilience, speed, flat rates or better terms in your existing contract, Canopy empowers organisations to harness the full potential of cloud computing with a focus on openness and transparency. Companies can currently benefit from their bespoke white gloves service or join the waitlist for their AI-powered self-served platform.

About Technology Industry Forum:

Tech Industry Forum (TIF) is a not-for-profit, membership driven, trade body that exists to help the UK’s tech sector and digital economy grow and become the benchmark for digital excellence worldwide. Its mission is to promote the future interests, growth, resilience, and sustainability of our members and the ecosystem of over a quarter of a million tech firms in the UK for the benefit of all stakeholders in society.

For further information please contact:

Steph MacLeod

Board Director & Head of Technology

Cavendish Consulting

[email protected]

Krystel Bendahan

[email protected]

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As films are fond of showing us, people are simultaneously the greatest strength and the greatest liability when it comes to cyberattacks. In 2007’s Die Hard 4.0, Bruce Willis succeeds in dismantling a sophisticated hacker ring almost entirely on the strength of sheer bloody-mindedness, occasionally punching things and more often, crashing cars into stuff.

Although the accuracy of the film has about as much in common with technological reality as Jurassic Park’s Unix system, it does make an important point. Hacker behaviours vary, and over time we see a great deal of change in how and where attacks are perpetrated.

According to Cloudflare, gaming and gambling sites and servers are the second most popular target for application-layer DoS attacks, after cryptocurrency, and the third most attacked at the network layer.

This results in some interesting experiences from a protection perspective.

Social Friction

It’s important to look broadly at DoS (and cyber) attacks to get mitigation right. For example, users want services to be as available as possible, so they can access games easily, which means keeping the log-in and authentication process as streamlined as possible. However, from a provider point of view, more comprehensive (and often, slower) security measures help to protect users. Consequently,  achieving a balance of the two is important.  

More specifically for DoS mitigation, network and security settings do vary by game; different games use different network settings, ports, and have different characteristics for communicating between servers and players, which also has an impact on how the game is protected – or exploited.

From a social perspective, how – and whether – games are attacked tends to vary based on the characteristics of the game and its players. The main variables seem to be whether the game is public or player-owned, and competitive or co-operative. For example, although it’s enormously popular, and public, Valheim servers are less likely to be attacked, simply because of the nature of the game – it’s more about exploration and survival rather than competition. On the other hand, CS-GO and Arma are quite competitive and seem to spawn relatively high rates of disgruntled gamers launching DoS attacks at each other.

Player-owned servers are generally less likely to suffer from DoS attacks, because they’re shared amongst friends and family. If you know you’ll have to face someone socially in the future, you’re much less likely to launch a cyberattack on them. Of course, you might have a shouting match or resort to more amusing pranks, but at least that doesn’t drag your friendly neighbourhood infrastructure provider into the matter. However, servers owned by a game hosting provider but used privately do tend to receive a number of attacks because mischief-makers can bring down many games by attacking the same number of servers. 

Finally, these patterns are also intersected by trends. Pre-pandemic, we saw the launch of many massively multi-player games, like Destiny and Fortnite. Post-Covid, we’ve seen more people playing with friends and family – possibly as a result of getting more into gaming during the pandemic but then realizing that they’d rather play with people they know. This also tends to reduce the incidence of DoS attacks – but means that the DoS attacks that do happen are more likely to be run by experienced third parties.

Knowing Your Application

Although attacks on gaming servers can take place at the network and transport layers, DoS attacks often take place on the application layer, bypassing network firewalls. One of the main challenges for blue teams and other cybersecurity professionals is that technology infrastructure and software is hugely complex, and as complexity and scale increases, so do the number of potential avenues for attack.

For example, although application-layer DoS attacks can target the server itself via game traffic, there are other ways to cause disruption. For example, in-game audio and video communications open ports that can lead to vulnerabilities, and any bots (such as anti-cheat bots) also present avenues of attack.

Each game and plugin will have its own characteristics that blue teams need to be aware of, profiling, understanding and in turn, protecting the games in question. Each new mod or update launch can also turn into an arms race as both hackers and blue teams try to understand new vulnerabilities to either protect or exploit them.

Into the Future

It probably goes without saying that the future of DoS – and cybersecurity in general – lies with both AI and people. While DoS tools have been available for hackers to download for years, AI is increasingly being used in this capacity to optimize attacks and get past organizational defenses. On the other hand, AI also has great potential to help protect against DoS and other cyberattacks. However, both rely on smart deployment, management and utilisation by people, and although cyberattacks grow more complex and powerful by the day, so do our defenses.

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