If 2025 was the year AI got a vibe check, 2026 is proving to be the year the technology gets practical. The focus is already shifting away from building ever-larger language models and toward the harder work of making AI usable in the real world.
Many researchers believe the next big leap will come from world models: AI systems that learn how things move and interact in 3D spaces so they can make predictions and take actions. Yann LeCun left Meta to start his own world model lab and is reportedly seeking a $5 billion valuation.
Physical AI is hitting the mainstream as new categories of AI-powered devices, including robotics, autonomous vehicles, drones, and wearables start to enter the market. Boston Dynamics CEO Robert Playter noted at CES: "We were doing YouTube-video parkour 10 years ago... The hard stuff is useful work" — emphasizing operation in fields such as mining, construction and logistics.
Enterprise adoption is accelerating rapidly. JPMorgan Chase has reclassified its massive investments in AI from experimental R&D to "core infrastructure" spending. McKinsey & Co. has introduced an "AI interview" stage for its graduate recruitment and now utilizes a virtual workforce of 20,000 AI agents alongside its 40,000 human employees.
MIT Technology Review named mechanistic interpretability as one of its 10 Breakthrough Technologies for 2026, with companies like Anthropic, Google DeepMind, and OpenAI developing new techniques giving researchers a glimpse at the inner workings of AI models.
However, not everyone is embracing the AI revolution. A backlash is brewing with people committing to "analog lifestyles" — an effort to slow down and find tangible ways to complete daily tasks. Searches for "analog hobbies" on craft store sites increased by 136% in the past six months.