UK tech had a tumultuous year in 2025, with headlines dominated by AI, cyber attacks and a challenging investment environment. AI in particular had a significant moment, with its evolution providing a productivity boost to resource-scarce startups while also creating new challenges surrounding compliance and safety.
When UKTN asked a series of industry experts about their trend predictions for the sector in 2026, it’s no surprise that AI was a leading point of conversation – but so too was the evolution of payments, a switch up in startup mindset and a new take on solution deployment.
Here’s what they have to say:
Sam Grice, founder and CEO at estate planning business Octopus Legacy
“In 2026, AI will unlock a level of speed that fundamentally changes how startups are built, allowing small teams to execute ideas in weeks that once took years. 2026 will be the year where we start to see a new breed of unicorns that have very small teams. This shift will force founders to lean into uncertainty and make decisions quickly.
“The startups that win will be those that get products live early, learn directly from customers and adapt in real time, rather than over-planning in search of perfect product market fit. As technology becomes the default, the companies that truly stand out will be the ones that behave most like humans, because how you show up, treat people and work together will matter just as much as the products you build.”
Andy Aitken, co-founder and CEO at telecoms startup Honest Mobile
“The biggest trend for UK businesses in 2026 is a shift in mindset. Too many companies still think in ‘UK-first’ or ‘hyper-local’ terms, and it limits everything – ambition, product design and ultimately growth. The most successful leaders will build with a global market in mind from day one.
“Another key trend is navigating the noise. Every business is drowning in opinions – from competitors, incumbents, investors, even well-meaning advisers. The companies that do well in 2026 will be the ones that know what to listen to and what to filter out.”
Georgina O’Toole, partner and chief analyst at UK tech analytics firm TechMarketView
“In 2026, the key trend for the UK tech and startup ecosystem will move from generic one-size-fits-all technology deployments to more precise and sector-specific solutions. The past wave of rapid generic AI adoption showed that speed without direction often accelerates inefficiency rather than delivering productivity or transformation.
“Competitive advantage will come from understanding exactly what needs changing in each sector and designing technology around those constraints – not from deploying more broadly or more quickly.”
Marco Venuti, identity and access management business acceleration director at Thales
“In 2026, the cumbersome security steps that slow online checkouts – copying one-time codes, redirecting through 3D Secure pages – will give way to payment passkeys. This shift will streamline the purchasing experience while cutting fraud, as banks and merchants move away from vulnerable password-based systems.
“The change will also be regulatory as much as technical, with liability for fraud expected to fall more heavily on organisations that fail to deploy stronger authentication. For consumers, the result will be faster, simpler, and safer online payments.”
Toine van Beusekom, strategy director at payments solutions provider Icon Solutions
“AI in payments is rapidly moving far beyond fraud detection, but its success depends entirely on data quality. Fragmented systems and point solutions limit AI’s impact, while consolidated, ISO 20222-based data foundations accelerate time to value.
“Banks that combine payment consolidation with robust data platforms will unlock AI-driven routing, reconciliation and customer service at scale, turning complexity into competitive advantage.”
Dave Smallwood, managing director at payment service provider Mollie UK & Ireland
“In 2026, UK companies will be navigating a perfect storm of technological and operational change. Agentic commerce is shifting how transactions happen, with AI agents autonomously negotiating and executing purchases, making API readiness critical as businesses that aren’t structured for this risk will be invisible to the next wave of high-volume buyers.
“At the same time, the so-called ‘bureaucracy cliff’, from making tax digital to business rate resets and rising wage costs, means automation isn’t optional – it’s essential for survival. The companies that succeed this year will be those that embrace automation, optimise for both code and humans, and design payments that are seamless, reliable and scalable.”
Phillip Mckenna, cofounder at edtech startup SimpleStudy
“This year, I expect disruption to accelerate across markets and businesses, driven largely by AI. Market volatility will increase, and shifts in market share are likely to happen faster than we’ve historically observed, with new entrants capturing ground more quickly. Companies that fail to adapt will see their positions erode far more rapidly than their leadership, investors, or financial markets anticipate.
“It’s not all negative: businesses that survive this wave of disruption are likely to reduce costs, expand their customer base and unlock growth, even in traditionally ‘boring’ sectors.”
“The companies that succeed this year will be those that embrace automation”
Chris Harris, EMEA technical director, cybersecurity products at Thales
“Deepfakes will force a rethink of digital trust. Generative AI has made deception effortless, with anyone now able to create convincing audio or video deepfakes in seconds. As a result, visual and verbal cues can no longer be relied on for identity verification.
“In 2026, organisations will rethink access management around continuous, multi-layered trust. Expect to see ‘multi-factor authentication for life’ take shape – where every high-risk interaction, even a video call, requires real-time validation.”
Fergal O’Connor, CEO and founder at AI powered media buying and planning platform Buymedia
“Data has evolved from being a ‘nice to have’ to the organising force that determines marketing success. For UK startups entering 2026, the importance of data-driven decision-making cannot be underestimated – it’s crucial for planning and buying advertising, with a laser focus on achieving the best return on investment. With tight budgets that need to work hard, the challenge is turning mountains of data into meaningful action, not just to survive, but to thrive.”
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