Leaders to prioritise clarity & trust as AI faces major reset

Business and technology leaders are set to adopt more measured and practical approaches to artificial intelligence and digital transformation in the coming years, according to projections shared by Thrive's executive team.

AI adoption

Companies are expected to move past general hype and pursue more targeted technology adoption, focusing on initiatives that address specific business challenges. Bill McLaughlin, Chief Executive Officer at Thrive, said that the most successful companies in 2026 will be those who "effectively align technology, people, and processes through intentional and transparent communication, ensuring everyone understands the 'why' behind each initiative."

McLaughlin emphasised the need for business leaders to prioritise clarity and shared understanding, adding that strong communication is central for alignment and technology adoption. He said companies should apply new tools with care, rather than deploying technology at scale indiscriminately, stating that measurable, lasting impact comes from clearly defined and communicated goals.

Leadership focus

Leadership styles are also predicted to shift. Transparent communication is expected to be at the core of strategy execution. "Employees are far more likely to adopt new technologies and policies when they understand the 'why.' When leaders take the time to explain how an initiative directly helps employees perform their jobs more efficiently and effectively, whether by reducing manual work, improving collaboration, or freeing up time for higher-value tasks, the message resonates. It shifts the conversation from compliance to empowerment," said McLaughlin.

He suggests that as leaders demonstrate they are pursuing meaningful long-term improvements, rather than simply reacting to external pressures, employee support for changes will increase, with teams becoming more engaged in transformation.

M&A outlook

Mergers and acquisitions are set to rise as market conditions change. With interest rates predicted to fall, transaction volumes could increase, accompanied by greater selectivity. "Acquirers will prioritise cultural compatibility, operational alignment, and long-term value creation. Here too, communication will be critical: integration speed and automation matter, but transparent, continuous communication across teams will determine which deals succeed," said McLaughlin.

He said that as capital becomes more readily available and AI further integrates into business operations, deal activity will be used strategically to create organisations built on trust and shared purpose, rather than simply scaling quickly.

Security threats

Cybersecurity risks related to artificial intelligence are tipped to escalate. Mike Gray, Chief Technology Officer at Thrive, said, "2026 will bring cybersecurity's 'AI moment of truth.' The first major public breach of an AI model will expose how fragile model pipelines and data integrity really are. Attackers will learn to ransom or corrupt models used in high-stakes industries like insurance and finance, forcing companies to treat AI as critical infrastructure rather than an experimental tool."

He added that these incidents will prompt demand for improved model governance and technology to verify AI system outputs. There will likely be increased scrutiny from regulators over the trustworthiness of AI systems.

Trust dynamics

Gray stated that generative AI will contribute to a growing crisis of digital trust, saying, "As deepfakes and generative AI continue to advance, the line between real and artificial will blur beyond recognition. Voice, video, and written communication will all be weaponised, making authenticity nearly impossible to verify. Phishing emails will mimic CEOs perfectly, and fake video calls will fool even trained professionals. This erosion of trust will force enterprises to build new verification layers into daily operations, changing how organisations confirm identity, share information, and make decisions in the digital world."

AI industry correction

The sector may also experience consolidation, as the current rapid expansion of AI infrastructure gives way to a more rigorous market. "The artificial intelligence sector is heading for a sharp correction: less of a bubble burst and more of a tidying-up. Companies will need to take a step back to understand where they are in their AI deployment and set out to master where they currently are before they scale," said Gray.

Gray added that while some start-ups may be absorbed or cease operations, those focused on providing industry-specific solutions in sectors such as healthcare, legal, and cybersecurity may see increased demand due to their ability to deliver measurable value.

"The winners of this next phase won't be those with the largest models, but rather those that prove the clearest value. Consolidation will usher in a more disciplined market, where substance and specificity finally outweigh hype," said Gray.