Forrester tips AI-native clouds & digital workers by 2026

Forrester has set out a series of technology predictions for 2026 that point to rising influence for AI-focused cloud providers, rapid automation of enterprise software, and new pressures on software development and infrastructure teams.

The research firm expects a shift in cloud spending as so-called “neoclouds” emerge alongside the large hyperscale providers. It also forecasts increased use of private AI, more autonomous functions inside enterprise applications, and wider deployment of automation and robotics in business operations.

Forrester forecasts that AI-focused neocloud providers will generate USD $20 billion in revenue in 2026. It expects this shift to erode the dominance of hyperscale cloud providers in generative AI services. The firm predicts that at least 15% of enterprises will seek private AI options as an alternative to placing corporate data in public cloud models. It also expects AI-related upgrades in data centres to stress existing infrastructure. The firm warns that these upgrades will trigger two major multiday cloud outages.

Lee Sustar, Principal Analyst at Forrester, said AI is reshaping cloud markets and investment decisions.

“The rise of the AI-native cloud is driving massive business investments and remaking enterprise IT as its impact spreads across the economy and society. In 2026, we will see the AI-focused neoclouds capture new business alongside the hyperscaler cloud providers, who will counter with AI innovations around agentic capabilities. At the same time, governments and businesses will build guardrails around AI for sovereignty and privacy, making a significant impact on where and how they invest in cloud technology. The transition to the AI-native cloud will be bumpy as commodity cloud infrastructure comes under strain,” said Sustar.

In enterprise software, Forrester expects human capital management platforms to expand into digital oversight of employees. It predicts that the top five HCM platforms will offer digital employee management features in 2026. The firm also forecasts that AI will automate more than 20% of enterprise application workflows. It expects half of enterprise resource planning vendors to introduce autonomous governance modules within their suites.

Linda Ivy-Rosser, VP, Research Director at Forrester, said digital workers will sit alongside human staff inside enterprise systems.

“If wondering whether reinventing enterprise applications means AI Agents become employees, then you recognise this is not just a thing. In 2026, enterprise apps will move beyond enabling employees with digital tools, to fully embracing and accommodating a digital workforce. For tech leaders, it will be time to mentally reconcile how far this market is able to digitise entire business processes and whole workflows independently of their human colleagues,” said Ivy-Rosser.

Forrester sees software development as an early and intense adopter of AI. The firm forecasts that software development will become the number one use case for AI in 2026. It also predicts that the time needed to fill developer positions will double. It expects “vibe coding” techniques, which use natural language and contextual signals, to evolve into what it calls “vibe engineering” by the end of 2026.

Diego Lo Giudice, VP, Principal Analyst at Forrester, said AI will permeate the full software lifecycle.

“In 2026, software development will lead AI adoption following a wave of innovation in vibe coding, code generation, and agents in 2025. In 2026 we will see the rise of engineering governance and the deeper integration of AI across the entire software development lifecycle (SDLC) - not just coding. Expect relentless cycles of innovation and a transformative era where AI redefines how software is built,” said Lo Giudice.

For infrastructure and operations leaders, Forrester expects a mixed picture of risk and automation. It predicts that at least one major outage will be prevented by an agentic AI workflow that acts autonomously. The firm forecasts that “private AI factories” will reach 20% adoption in enterprises in 2026. It expects on-premises servers to account for half of server share as organisations adjust their architectures. It also predicts that half of security tool vendors will enter the secure local area network market.

Michele Pelino, VP, Principal Analyst at Forrester, said AI demand will reshape networks and operations tools.

“In 2026, we will see significant disruption driven by accelerated appetite for all things AI. Business demands of AI systems, network connectivity, AI-powered IT operations (i.e., AIOps), conversational AI-powered service desk and such are driving substantial changes that tech leaders must enable within organisations. To succeed in this dynamic environment, tech leaders must be ready for key AI initiatives and integrated network and security, driven by dedicated silicon chips, xAI, M&A activities, and data centres,” said Pelino.

In automation and robotics, Forrester forecasts that strategic robot innovation will underpin 20% of new enterprise use cases in 2026. It expects relatively cautious use of advanced autonomous functions. The firm predicts that fewer than 15% of firms will activate agentic features in intelligent automation suites. It also forecasts that process intelligence tools will intervene in struggling AI deployments. The firm expects these tools to rescue 30% of failed AI projects.

Leslie Joseph, Principal Analyst at Forrester, said automation markets are converging around AI-led orchestration.

“The enterprise automation space is moving toward adaptive, AI-driven workflows, as the focus shifts from deterministic to cognitive autonomy. Individual automation markets like RPA, iPaaS, and BPM have all but converged. The challenge for 2026 will be to figure out how to combine adaptive intelligence with proven controls, balancing innovation with trust. Enterprises that get this right will unlock speed and flexibility without sacrificing governance,” said Joseph.