The year 2026 is set to be a pivotal moment for the AI sector. Artificial intelligence saw expansion in 2025, with businesses mounting substantial challenges to OpenAI like never before. Google leveraged its corporate strength to roll out more AI-driven features than any other entity, Meta utilized its financial reserves to secure premier talent, and OpenAI placed significant wagers with a focus on the future. Simultaneously, smaller firms like Perplexity and Anthropic made notable advances but still appear more as acquisition prospects than genuine threats. And then there’s Microsoft, a firm that may have aligned itself with OpenAI and an AI PC strategy a touch prematurely.
Looking forward to 2026, I foresee a year of accountability. Several companies made commitments they will need to fulfill next year, such as Samsung’s smart glasses or OpenAI’s forthcoming hardware product. Moreover, the outcomes of ongoing lawsuits and potential AI regulations could overshadow the industry in 2026. Here’s everything I anticipate from the AI sector next year, along with what I hope to witness.
Brand collaborations and legal disputes will establish the atmosphere for AI in 2026. In my AI report card for 2025, I observed that assessing OpenAI’s year is challenging because the company emphasized its future over its present. The most significant move from OpenAI occurred just weeks before the new year — it sealed a partnership with Disney, which will see the entertainment behemoth invest $1 billion in equity into OpenAI. As part of this arrangement, OpenAI will gain exclusive access to Disney’s intellectual property featuring over 200 licensed characters. Beginning in early 2026, users will be able to create Sora videos with Disney characters.
This is a substantial development for both entities, as the three-year licensing agreement permits OpenAI the legal right to use Disney characters, with Disney presumably benefiting financially in return. OpenAI successfully persuaded Disney to contribute funding as part of the agreement, as well. Most crucially, Disney issued a cease-and-desist notice to Google concerning the company’s utilization and generation of copyrighted material through its AI models.
How this situation unfolds will undoubtedly influence the AI sector in 2026. For the moment, I can still create Disney characters utilizing Google AI models, which raises numerous inquiries. Will Disney take legal action against Google for its purported copyright infringements? Does having legal access to Disney content provide OpenAI a crucial advantage over its rivals as the AI competition intensifies? Is Disney truly generating sufficient revenue from this deal to rationalize relinquishing its most prized assets to an AI company?
I eagerly anticipate these questions being resolved in 2026. This is merely one of the developments regarding brand collaborations and legal hurdles for AI firms in 2026. Numerous lawsuits have been filed by entities such as the New York Times, Ziff Davis, Thomson Reuters, and others that seek to compel governments to determine the legality of training AI models using copyrighted content.
In 2026, I’m hoping for resolutions to these legal dilemmas, preferably accompanied by much-needed AI regulations. I’m also interested to see if rivals like Google or Meta attempt to replicate OpenAI’s arrangement with Disney — next year could quickly transform into a race for brand partnerships with IP holders.
Less AI mediocrity and more thoughtful functions. It is obvious that not every AI capability is subpar, but many are. AI-generated content reached new lows in 2025, leading Merriam-Webster to designate “slop” as its word of the year, describing “digital content of low quality that is usually produced en masse by means of artificial intelligence.” In 2026, I wish to see a reduction in slop and an increase in genuinely useful features.
Brands, if you’re paying attention, cease placing AI where it’s unnecessary. I don’t require Meta AI in my Instagram search bar or my WhatsApp DMs. I certainly don’t expect a never-ending feed of AI slop in the Meta AI app, which is necessary for managing my collection of Ray-Ban Meta and Oakley Meta smart glasses.
Meta is an undervalued participant in the AI realm, especially considering its NBA-style contracts for elite engineering talent, amounting to hundreds of millions in compensation through multi-year agreements. Next year, it must cease obstructing its progress. Craft meaningful AI features that users actively seek, and eliminate the slop forced into otherwise outstanding applications.
Meta is certainly not the only entity engaging in this; it merely stands out as the worst offender. Other AI companies should observe and learn what not to do, ensuring that only features that make sense are incorporated into their premier applications.
I am keen to discover what Samsung, Google, and OpenAI are developing. I mentioned Android XR as something to pay attention to in my AI preview article for 2025, and I’m revisiting it in 2026. This puts significant pressure on Google, the entity creating the software platform, and Samsung, the one crafting the hardware. Ultimately, the Android XR teasers and demonstrations that continue
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