Introduction
Most small and midsize businesses are starting 2026 with the same question: which technology trends are worth time and budget, and which can safely wait? This overview focuses on the trends that actually matter for SMBs this year, plus a few that are largely hype for smaller organizations.
In This Article
Practical AI, Not “Science Project” AI
Generative AI (GenAI) and automation remain the top technology priority for small businesses in 2026, but the conversation has shifted from experimentation to outcomes. Research shows GenAI and “agentic automation” now sit at the top of SMB tech priorities, directly tied to driving profitable growth rather than curiosity projects. (Techaisle - Opens in new window)
For many SMBs, this looks like:
- AI assistants inside tools you already use (email, office suites, CRM, ticketing).
- AI-supported workflows for drafting content, answering customer questions, or summarizing documents.
- Early process automation, where AI routes or handles simple tasks so staff can focus on higher‑value work.
ExcalTech’s post, AI Implementation Reality Check: Why Most Small Businesses Still Struggle—and How to Succeed in 2025, highlighted that up to 95% of small-business AI projects fail to deliver value when they lack a clear business case, integration plan, or success metrics (ProInvoice - Opens in new window). The same lesson applies in 2026: AI that isn’t tied to a concrete, measurable objective usually becomes shelfware.
What to do in 2026:
- Pick one or two specific use cases (for example, reducing time on reporting or customer responses) and define success metrics up front.
- Favor AI capabilities built into platforms you already own before adding new tools.
- Treat AI as process improvement, not a standalone “IT experiment.”
Cyber Risk Moves to Data and Devices
Cybersecurity remains a top business issue, but the emphasis is evolving from generic “threats” to protecting data integrity and securing the rapidly growing number of connected devices. SMBs are under intense pressure to strengthen cyber resilience while keeping costs under control.
For many organizations, two areas stand out:
- Data trust for AI and analytics. Techaisle’s 2026 data - Opens in new window shows “Data Trust & Sanitization for AI” is now the #2 IT challenge for SMBs, reflecting concerns about feeding sensitive or poor‑quality data into AI tools.
- IoT and edge device security. Manufacturing and office environments increasingly rely on connected cameras, sensors, printers, and controllers, which expand the attack surface if left unmanaged.
ExcalTech has already explored this shift in posts like The Hidden Dangers of ‘Shadow IoT’ in Small Offices and Why Your Small Business Needs a Separate IoT Network (And How to Set It Up), which explain how unapproved devices can quietly increase risk and how segmentation reduces the chance of lateral movement after a compromise.
What to do in 2026:
- Inventory devices and data: know what’s connected and where sensitive information lives.
- Segment networks so IoT and guest devices are isolated from core business systems.
- Tighten backups, MFA (multi‑factor authentication), and monitoring so you can detect and recover from incidents quickly.
Hybrid Cloud Is the New Normal
Most small businesses now operate in hybrid environments, combining on‑premises systems with multiple SaaS and cloud services. Experts report that “all‑cloud” or “all‑on‑prem” strategies are increasingly rare; the majority of SMBs will remain in a blended state for the foreseeable future (BizTech - Opens in new window).
This mix delivers flexibility but also introduces challenges:
- Identity and access management across many platforms.
- Configuration mistakes that create security gaps or unexpected costs.
- Limited visibility into where data is stored and how it is protected.
ExcalTech’s Year-End IT Checklist for Small Businesses: 10 Critical Tasks Before 2026 already recommends cloud app inventories and access reviews as key steps to reduce surprise risks and expenses. Carrying those habits into 2026 helps keep hybrid environments under control.
What to do in 2026:
- Create and maintain a central inventory of cloud apps and critical on‑prem systems.
- Use a single identity platform where possible and enforce MFA across all critical services.
- Periodically review permissions, shared links, and external access to cloud data.
Remote and Hybrid Work Are Here to Stay
Remote and hybrid work are no longer temporary responses; they’re baseline operating models for many SMBs. This brings clear benefits in flexibility and access to talent, but also ongoing security and management considerations.
Recent guidance emphasizes:
- Strong identity controls (MFA, conditional access) as the front line for securing remote access.
- Endpoint security for laptops and mobile devices used from home networks and on the road.
- Clear policies for personal device use and secure Wi‑Fi.
ExcalTech recently published How to Secure Remote and Hybrid Work During the Holidays (and Beyond), which offers practical steps that remain relevant well into 2026, including securing devices, enforcing MFA, and training staff on common social engineering tactics.
What to do in 2026:
- Treat identity as the new perimeter: MFA everywhere, with stronger policies for high‑risk logins.
- Standardize endpoint security controls (patching, antivirus, disk encryption) across remote devices.
- Refresh remote work guidelines so staff know how to handle public Wi‑Fi, personal devices, and suspicious messages.
What’s Mostly Hype for SMBs (For Now)
Some high‑profile technologies dominate headlines but offer limited near‑term value for most small organizations:
- Custom, large‑scale AI model training. Building proprietary foundation models is usually unnecessary and cost‑prohibitive; most SMBs get better ROI from leveraging existing models via SaaS or platform integrations.
- Complex, enterprise‑grade SASE (Secure Access Service Edge) and Zero Trust architectures. The principles are valuable, but full‑scale implementations are often overkill without first nailing basics like MFA, segmentation, and logging.
- Quantum computing for everyday business. Important to watch for future cryptography changes, but not a 2026 priority for typical SMB IT roadmaps.
Analysts note that SMBs are increasingly looking for partners who simplify complexity—bundling AI, security, and data management into coherent services—rather than expecting small teams to assemble cutting‑edge stacks on their own (TechAisle - Opens in new window).
What to do in 2026:
- Focus on fundamentals that directly reduce risk or improve productivity before chasing advanced architectures.
- Keep an eye on emerging tech through trusted advisors, but avoid major spend where the business case is unclear.
Conclusion: Turning Trends into a 2026 Action Plan
Taken together, these trends point to a simple but powerful 2026 agenda for small and midsize businesses:
- Use AI where it clearly saves time or improves service and follow a structured approach like the one outlined in ExcalTech’s AI Implementation Reality Check.
- Strengthen cybersecurity around data and devices, building on lessons from Shadow IoT, IoT segmentation, year‑end checklists, and remote‑work security guidance.
- Bring order to hybrid cloud and remote work environments with better identity, documentation, and access controls.
Most importantly, remember that you do not need to tackle everything at once. A focused roadmap for the next 6–12 months—anchored in clear business goals—will beat scattered experimentation every time.
For help turning these 2026 trends into a concrete plan for your organization, ExcalTech can assist with assessment, strategy, and hands‑on implementation. From AI readiness and IoT security to hybrid cloud management and remote‑work protection, our team specializes in practical, SMB‑friendly solutions that deliver measurable results.
Contact ExcalTech today to schedule a 2026 IT strategy discussion and start aligning your technology investments with the outcomes that matter most to your business.