Artificial intelligence will transition from hype to practicality in 2026, no longer limited to expanding large models but shifting towards deploying smaller, more refined models for enterprise use, and embedding intelligence into physical devices. Experts emphasize that AI will transition to new architectures, the adoption of world models for spatial reasoning, and standards such as the model context protocol from companies like Anthropic, connecting AI agents with real-world systems. The focus is on enhancing human workflows, with anticipated growth in intelligent agent solutions, physical AI devices, and new roles in AI governance.