""Today, enterprises are testing multiple tools for a single-use case, and there's an explosion of startups focused on certain buying centers like [go-to-market], where it's extremely hard to discern differentiation even during [proof of concepts]," Ferguson said. "As enterprises see real proof points from AI, they'll cut out some of the experimentation budget, rationalize overlapping tools and deploy that savings into the AI technologies that have delivered.""
"He predicts that enterprise companies will not only concentrate their individual spending, the broader enterprise landscape will narrow its overall AI spending to only a handful of vendors across the entire industry. "Budgets will increase for a narrow set of AI products that clearly deliver results and will decline sharply for everything else," Biederman said. "We expect a bifurcation where a small number of vendors capture a disproportionate share of enterprise AI budgets while many others see revenue flatten or contract.""
A survey of 24 enterprise-focused venture capitalists found most predict enterprises will increase AI budgets in 2026, but not across the board. Many enterprises will concentrate spending on fewer contracts and choose vendor winners instead of continuing broad experimentation. Enterprises currently test multiple tools per use case and will rationalize overlapping tools as proof points emerge, reallocating experimentation savings to proven AI technologies. A small number of vendors are expected to capture a disproportionate share of enterprise AI budgets while many other startups may see revenue flatten or contract. Enterprises will also grow spending on tools that make AI safe and compliant for enterprise use.
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