AI to transform business risk, trust & compliance by 2026

Artificial intelligence is set to reshape how businesses manage risk, compliance and customer services in 2026, according to a range of industry leaders who predict sharper regulatory focus, new security exposures and a turn away from generic AI projects toward domain-specific tools.

Security leaders warn that the rapid spread of AI in enterprises is creating new forms of data risk, while executives in accounting, connectivity, tax and energy forecast a shift from experimentation to embedded, tightly scoped AI systems that sit inside core workflows.

Several also expect regulators and insurers to tighten expectations around AI assurance, data integrity and sovereignty, and digital reporting.

Data exhaust

George Gerchow, Faculty at IANS Research and Chief Security Officer at Bedrock Data, expects the first major breach directly linked to AI "data exhaust" in the coming year. He points to derivative data generated by pilots and experiments as a growing blind spot in corporate security.

"AI-generated data sprawl will trigger the first major breach from forgotten "data exhaust." The tipping point for data sprawl is already here, hiding in lower-level development environments like QA sandboxes and integration systems. In 2026, we'll see the first major breach directly attributed to AI-generated "data exhaust" that nobody inventoried: a forgotten vector database or prompt log from an abandoned pilot, left open with customer data or secrets exposed. Organisations are multiplying derivative data faster than they can track it. The solution requires treating AI exhaust as Tier 1 data with mandatory lineage tags and time-to-live (TTL) policies at write, implementing 30-60 day default retention in lower environments, restricting access with short-lived credentials and purging orphaned artifacts monthly. Visibility must be designed in from the start, or organizations will lose control entirely," said Gerchow, Faculty, IANS Research & Chief Security Officer, Bedrock Data.

He also expects legal and insurance scrutiny to increase around how organisations test and harden AI systems before production use.

""Failure to red team AI" crosses the threshold into criminal negligence territory. Adversarial AI testing will become a board-level accountability issue and a standard line item in D&O insurance policies and audit requirements. "Failure to red team AI" becomes negligent when high-risk workflows lack enforced verification. Traditional phishing drills have failed; it's time to implement real controls. Executives must publish standing "how I will contact you" policies with approved channels and verification phrases, any request for data, credentials, funds or banking changes requires out-of-band two-factor verification with a designated approver, and deepfake-resistant procedures become mandatory. Organisations must combine this with public bug bounties targeting LLM and RAG pipelines, pre-production AI red-team gates and quarterly executive reports on findings, fixes and accountable parties. The focus must shift from training people to implementing proof-based systems," said Gerchow.

AI posture

Gerchow forecasts the emergence of AI Security Posture Management platforms as companies deploy more AI agents across infrastructure, and he links this to a changing threat landscape that now includes human "biohacking".

"AI-SPM becomes the essential security platform as human biohacking enters the threat landscape. As AI agents proliferate, AI Security Posture Management (AI-SPM) emerges as the new security platform for monitoring systems, while MCP servers become the components those agents rely on that AI-SPM must inventory, test and enforce. Meanwhile, human biohacking crosses into cyber: expect executive impersonation and access fraud blending implants or wearables with deepfake voice technology. Verification protocols must replace awareness training as the critical control. Audit focus shifts entirely to evidence: insurers and regulators will demand AI change logs, adversarial test results and decision provenance. Vendor and model supply chains become primary attack surfaces, making traceability shift from optional to essential. The metrics that matter are data-first: time to inventory new AI pipelines, artifacts expired on schedule, and cost per incident defended," said Gerchow.

Accounting shift

In professional services, accounting executives expect AI to change the economics of client work and to push firms towards advisory services rather than transactional offerings.

"AI will put CAS on every accountant's menu in 2026. As AI becomes the super assistant behind the scenes, more accountants will have the capacity to deliver the kind of advisory work clients always hoped for. Smart firms will task AI with processing documents, surfacing insights, and handling busy, repetitive work so accountants can spend their time having real conversations, giving proactive guidance, and deepening client trust. With AI, there's no reason why any firm should leave CAS off their list of offerings," said Tammy Hahn, SVP of Product, Ignition.

Hahn links this shift to changes in how firms compete and price services.

"AI the super assistant. 2026 is the year accounting pros will rediscover the joy of their craft. AI shouldn't be scary, it should be your always-on super assistant. Tech should take the mind-numbing work, so you can remember why you got into this business in the first place. It's doing the work in the background while accountants and advisors do what only people can: build trust, listen deeply, and help clients move forward with confidence. The best firms will have an assistant that never sleeps and partners who finally can," said Hahn.

"Prices increasing. In 2026, firms will stop competing on price and start competing on partnership. Clients are looking for trusted advisors, not transactional relationships. When firms show up with insight, transparency, and care, they'll have no reason to undercharge for their expertise," said Hahn.

"Data and tech driving strategic growth. High-growth firms will use data to work smarter, not harder - identifying which clients and services truly drive profitability. Technology will guide decisions, but humans will set direction and ensure growth stays aligned with purpose," said Hahn.

Trust in AI

Steve Hare, Chief Executive at Sage, expects the debate around AI in small business and finance to centre on trust and predictability rather than breadth of function.

He highlights the risks of over-promising on AI features that do not integrate with daily workflows.

"AI hype and AI theatre will backfire Announcing bold plans that never materialise, or launching tools that look clever but don't fit real workflows, damages credibility. Over-promising creates hidden costs: wasted time, manual workarounds, and scepticism that slows future adoption. People notice, even if they don't always say it openly," said Hare, CEO, Sage.

Hare contrasts general-purpose models with narrower tools designed around specific processes and data sets.

"General-purpose AI will increasingly fall behind more focused solutions Most businesses don't need an AI system that can do everything. They need one that does a small number of important things extremely well and does them the same way every time. The AI that succeeds will be bespoke, tailored to specific workflows, and trusted with sensitive data. It will reduce errors, behave predictably, and sit quietly inside everyday systems, proving its value through results rather than promises," said Hare.

Energy pressure

In the energy sector, Wood Mackenzie expects AI to both drive and manage a sharp rise in electricity demand from data centres and digital infrastructure.

"AI-driven innovation is accelerating electricity demand, with data centres placing unprecedented pressure on global grids. This surge fuels digital progress but exposes a critical weakness: traditional infrastructure cannot keep pace. To address this, energy systems must become intelligent, and AI is uniquely positioned to manage the complexity it creates. By 2026, AI agents will move beyond automation to autonomous decision-making. They'll simulate scenarios, anticipate disruptions, and execute actions proactively. Utilities are already leveraging AI for predictive maintenance and demand response, while hyperscalers use 'spatial shifting' to align compute loads with renewable availability. Acting as "always-on" digital advisors, these agents will continuously monitor patterns, alert businesses to risks, and optimise grid stability. This intelligent layer ensures energy infrastructure evolves alongside technological growth, enabling resilience and innovation in equal measure".

Cyber resilience

Security vendors expect AI to sit at the heart of cyber resilience programmes and to be applied to both prevention and recovery.

"One overlooked aspect of Cyber Resilience is data integrity. 2026 will see Cyber Resiliency strategies have a stronger focus on the data integrity and the use of AI systems to monitor and detect changes and anomalies of data on production systems and in key repositories that are relied on for restoring services after an attack. 2026 will see continued use of AI agents to prevent attacks, monitor production systems for signs of an infiltration and detecting when data integrity has been compromised. 2026 will start to see systems deployed that will integrate Multiple specialized AI agents into a single AI solution to automate complex workflows across all facets of the Cyber Security and Cyber Resiliency architectures. 2026 will see an increase in ransomware on cloud targets. Not just as a means for penetration point into the customers environment but also to target key/critical data held within the cloud for exfiltration, encryption for ransom payments and to disrupt/prevent any restoration attempts," said Ed Moke, VP of Operations, Index Engines.

Tax and trade

For retailers and exporters, Avalara sees compliance and data quality as central to competing in overseas markets and meeting new digital reporting rules.

"In 2026, getting U.S. compliant won't just keep you out of strife, it'll help you grow. Heading into the new year, plenty of Aussie retailers are keen to crack the U.S. market, and fair enough, it's massive. But here's the thing: the U.S. sales tax system, where each of the 50 states make their own regulations, can be a dog's breakfast if you're not ready for it. 2026 will be the year where doing compliance right gives you a real leg up. Sort your registrations, automate your calculation and filings, and stay audit-ready from day one. Once you're compliant, expanding across states becomes a walk in the park, not a mad scramble," said Chris Calverley, Head of Sales and Partnerships ANZ, Avalara.

"Next year, the early birds will clean up in cross-border trade. If 2025 taught us anything, it's that waiting for the dust to settle doesn't work. Tariffs and trade rules are continuing to change faster than a kangaroo in full flight. In 2026, the businesses that come out on top will be the ones that plan ahead with clean product data, accurate tariff codes, and solid compliance workflows. The ones that don't will be left chasing their tails when customs start asking questions. Good data means faster deliveries, lower costs, and fewer nasty surprises," said Calverley.

"2026 will be the year e-invoicing goes from nice-to-have to must-have. E-invoicing has been bubbling along for years, but next year it will hit full stride across APAC, including a 2026 mandate go-live in Australia. Governments are tightening the screws on digital reporting, and if you're not ready, you'll be flat out trying to keep up. Aussie exporters who get their e-invoicing sorted early will save time, cut down on errors, avoid last-minute dramas, and begin experiencing new business efficiencies and cost savings. It's like checking your ute before a long road trip: better to do it now than break down halfway," said Calverley.

"AI's not just hype; in 2026 it will do the heavy lifting for compliance. Let's be honest, no one starts a retail business looking forward to managing the complexity of tax compliance. But AI is finally making it less of a slog. Next year, smart retailers will use AI to handle the boring stuff like spotting data errors, crunching reports, and keeping everything tidy behind the scenes. It won't replace your team, but it will give them more time to focus on customers and growth. Think of AI as that reliable mate who quietly gets the job done while you handle the big stuff that promotes business growth," said Calverley.

"In 2026, clean data will be worth its weight in gold. Governments are getting sharper with data, and that means there's nowhere to hide when it comes to compliance errors. In the year ahead, dodgy or inconsistent records will come back to bite businesses. But if your systems are connected and your data is solid, you'll stay in the clear and make faster, smarter decisions. In short, clean data keeps you out of hot water and sets you up for smoother sailing," said Calverley.

"The new year is shaping up to be a ripper for Aussie businesses selling overseas, especially into the U.S. The trick is to treat compliance as part of your growth strategy, not a chore. Get automated, stay organised, and don't wait until it's all gone pear-shaped. The retailers who take compliance seriously and get their house in order will have a clear advantage. At Avalara, we're here to help you do just that: no drama, no headaches, just smarter selling," said Calverley.

Connectivity trends

In the UK channel, BT Wholesale expects AI to sit alongside 5G and digital voice as a core element of connectivity services and partner propositions.

"AI and automation will be a must-have for channel businesses. From intelligent service-desk bots to predictive analytics, AI will continue to transform operations. Our partners have told us that using AI agents has already created much faster resolution times for common issues. This efficiency gives partners and their customers time to focus on higher-value, strategic activities that drive growth and profitability. At the same time, there will be a shift from tech talk to customer-focused conversation. As automation handles more routine tasks, the human side of service delivery - such as trust, advisory capability, outcome-based engagements, simple business language, and partner culture - will matter more," said Gavin Jones, Director, Wholesale Partners, BT Wholesale.

"While embracing technologies like 5G, AI, and cyber security is paramount, channel partners should not underestimate the value of trust and simplicity. Data sovereignty will also be essential in 2026. As regulations tighten and end users demand high-performing, low-latency networks, data residency will become a vital factor when selecting vendors. There will be increased pressure for channel partners to use networks that span the UK and guarantee secure, resilient foundations. Network 5.0 has already arrived, and it's setting a new benchmark for performance and compliance," added Jones.

"Finally, digital voice services will become standard across collaboration platforms. Solutions like Teams Phone Mobile are reshaping client expectations, prompting MSPs and resellers to provide solutions that bundle external calling directly into collaboration tools. In 2026, channel partners must consider how communications can become even more unified and act quickly to get a share of the huge market," he concluded.