The business transformation trends for 2026 are forcing companies to rethink everything – from how teams work together, to how technology shapes day-to-day operations.
Business transformation continues to drive value across operations, from harnessing artificial intelligence (AI) and modernizing processes, to embedding sustainability and strengthening data security. The winners will be those who can orchestrate technology, people, and strategy in harmony.
“Transformation isn’t just about technology anymore,” says Anca Hobjila, lead trading operations manager at Tesco. “It’s about people. Companies that partner with employees to shape change will have a competitive edge. Technology should support learning, connection, and growth, not replace people.”
Here are the top trends shaping business transformation in 2026
1. Generative AI becomes a necessity
Generative AI is now a core driver of productivity and innovation. In 2025, generative AI has already emerged as a key driver of business transformation, with PEX Network finding it to be the second most popular solution respondents plan to invest in.
Source: PEX Network’s Global State of Business Transformation survey, May – July 2025.
However, firms that succeed are those that integrate AI into business processes, establish governance, and maintain a clear data strategy. Axel Karlsson, operations practice lead at McKinsey, explains:
“You need to have control of what data you are accessing, should be accessing, and should be leveraging to make your organization even better. Without this, generative AI cannot reach its full potential.”
Learn how business transformation management can evolve in the age of AI and agents!
2. AI leadership takes a seat at the boardroom table
As AI becomes central to operations, leadership and governance are evolving. Nearly 48 percent of FTSE 100 companies have appointed chief AI officers, according to a report by pltfrm, an AI-focused executive recruitment firm. Many of these companies have also established cross-functional AI leadership teams to ensure strategy, ethics, and outcomes are aligned.
Girish Gopalakrishnan, senior manager of continuous improvement at CNH, notes:
“Leadership in companies with mature business transformation systems emphasize culture, values, and people development. Often, we get wound up with technology and forget to support our employees. This focus leads to better financial and operational outcomes.”
Boards are now expected to oversee AI investments, align them with business objectives, and ensure responsible adoption, making leadership and governance a critical component of transformation success.
3. Sustainability at the heart of strategy
Sustainability is often one of the largest operational expenses. Therefore, it’s central to business strategy and transformation. Leading companies like Eaton are showing the way: in 2025, 75 percent of Eaton’s net sales stemmed from sustainability-driven products, and the company invested US$1.7 billion toward a $3 billion sustainability R&D goal by 2030!
4. Human-centered transformation
Even with the fastest technology and process upgrades, the human element remains the key differentiator. Organizations that invest in culture, leadership, and employee engagement see significantly higher adoption and better outcomes.
“Over the last few years, businesses have realized that successful transformation isn’t just about technology – it’s about people. The focus is shifting from managing change to partnering with employees to shape it," says Hobjila.
5. Data as a product
In 2026, fragmented data repositories are being dissolved and reformed into governed, curated data products. This trend, often supported by a data mesh approach, treats data sets as actual products with owners, version control, and clear service agreements.
This shift moves data ownership away from centralized IT to the business domain teams that actually use it, accelerating the time it takes to gain insights by making data more accessible and trustworthy. Deloitte reports that organizations shifting to product-based data ecosystems improve time to insight by 35 percent. This is critical because the speed of AI’s decision-making is only as fast as your ability to deliver clean, governed data!
In general, success won't be defined merely by adopting AI, but by the ability to orchestrate its deep integration while maintaining governance. The clear mandate for every leader is to become an orchestrator, mastering technical complexity while leading with a human-centered approach.