The use of AI will “start to be a defining factor that sets great companies apart from the rest”, the UK boss of Dell has predicted.
Steve Young, the US giant’s UK senior vice president and managing director, said progress has “laid a strong foundation” but told City AM that 2026 will be marked by which companies can use AI most effectively.
Referencing his predictions for 2025, the Dell boss had predicted that UK businesses “would move from exploring AI to decisively executing on its potential”.
Young has argued that his prediction has held, citing research that shows 64 per cent of businesses now report that AI has driven innovation in specific use cases.
On how he thinks AI will impact firms in 2026, he said: “Businesses that embrace AI to fundamentally transform how work gets done will lead the way.
“They’ll use intelligent agents to streamline operations, enhance customer and employee experiences, and create innovative products and services.”
In his predictions for 2025, Dell’s UK boss highlighted the rise of AI PCs and the push to “bring intelligence to the edge”.
Dell’s UK boss makes AI predictions for 2026
Young said that in 2026, this will “evolve further” with the emergence of Micro LLMs – compact, task-specific AI models that run locally on devices like AI PCs or edge systems.
He said: “These models enable real-time decision-making while improving efficiency and safeguarding data privacy.
“Similarly, my 2025 prediction about disaggregated data centres replacing traditional silos is proving accurate.
“As we move forward, businesses will need to adopt hybrid infrastructures that strategically integrate on-premises, cloud and edge systems to balance security, speed and cost.”
Dell’s UK boss also said Sovereign AI is a “significant development that has quickly become central to conversations” in this country.
He said: “It’s been really positive to see how the public and private sectors have been leaning into creating the infrastructure for the AI era.
“While there’s more to do, I’m looking forward to seeing this infrastructure become a reality next year, acting as an accelerant for UK businesses.
“We are already seeing nations build robust frameworks for local innovation and digital autonomy, using domestic infrastructure to keep sensitive data within regional boundaries.
“As we head into 2026, the technologies that emerged last year will become essential tools for business leaders.
“Those who seize the opportunity will embed AI deeply into their operations, adopt a balanced hybrid strategy across on-prem, cloud, and edge systems, and embrace sovereign infrastructure to enhance security and competitiveness.”