"The AI hype cycle will pop. 2026 marks the end of AI novelty purchasing. Companies will only pay for AI that increases revenue, reduces churn, or automates real work. The bar moves from impressive demos to measurable ROI. -Stevie Case, Vanta chief revenue officer A lot of AI valuations will take a markdown, squeezing compensation for AI researchers at tier-one startups. The best AI companies will continue to succeed but maybe not at the extent that they'd thought. -Deedy Das, Menlo Ventures principal"
"For AI buyers, 2026 will be the year of ROI. The shine of "pure potential" is wearing off, and budgets will increasingly flow to products that prove value, not just promise it. -Meera Clark, Redpoint Ventures partner The AI bubble debate will rage on. -Jai Das, cofounder, president and partner, Sapphire Ventures AI will need to prove itself in the numbers. -Anthony Georgiades, Innovating Capital founder and general partner"
AI hype will deflate in 2026 as novelty purchasing ends and buyers demand measurable return. Companies will only pay for AI that increases revenue, reduces churn, or automates substantive work. The purchasing bar will shift from impressive demos to provable ROI. Many AI valuations will be marked down, compressing compensation for some research talent at top startups, while the strongest AI companies maintain success with tempered expectations. Budgets will reallocate toward products that demonstrate clear value. The AI funding bubble risks bursting when short-term investors exit, increasing pressure for immediate financial outcomes.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]