In 2026 Britain’s business momentum will start with one thing – connectivity
Advances in AI and security will catch the eye next year, but only companies with firm digital foundations will be ready to reap the benefits, writes Chris Sims
In December, I had the pleasure of visiting Downing Street for the end of the Small Business Saturday tour, a UK-wide initiative celebrating the role small firms play in supporting our local economies and communities.
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While 2025 has had its challenges for businesses, the resilience and entrepreneurial spirit of the sector is never in doubt. And advances like AI mean the catalysts for growth are more accessible than ever.
In 2026, businesses must be willing to accelerate the adoption of emerging trends. But to do this, they must have rock-solid connectivity in place to underpin the new data-intensive technology, support expansion and drive efficiency.
We recently teamed up with Cambridge Econometrics to see the impact planned connectivity improvements could have on the productivity of UK businesses over the next five years. Our Future Unlocked report found that forecasted enhancements to business connectivity are set to improve productivity by an average of nine days per employee by 2030; equivalent to the average time employers lose to sick leave annually.
UK-wide infrastructure upgrades, such as 5G, the move to digital landlines and the end of the copper-based PSTN network, which closes in January 2027, give businesses the chance to capitalise on stronger digital connectivity.
As businesses pursue new opportunities and continue to grow, they must stay mindful of the need to protect their expanding digital footprint. 2025 will be remembered as the year high-profile cyber-attacks dominated headlines - from major high-street brands being targeted to a record number of “nationally significant” breaches.
BT’s own data shows hackers increased their scanning of web-connected devices, such as company mobiles and laptops, by 300 per cent this year, and I expect this trend to intensify in 2026. That’s why 2026 must be the year organisations take decisive action to understand better and mitigate these rising cyber risks.
Having advanced AI-driven security in place, along with cyber training that highlights the latest threats, will ensure companies of all sizes can innovate with confidence. Research shows that businesses that create a cyber-aware culture and embed cybersecurity into their operations will grow 20 per cent faster than those that do not.
As well as being crucial to cybersecurity, AI will also continue to dominate conversations across the board. From chatbots to accounting software, most organisations are likely to increase their use of these tools in 2026, but the AI divide will be defined not by who has the best technology, but by who can best utilise and deploy it at scale.
Two in five SME leaders currently see digital skills gaps as their biggest barrier to AI adoption, so addressing these gaps will be important in 2026 and beyond. The businesses that will be most successful will embed it within their training so employees can use AI confidently, as well as setting out clear governance and compliance frameworks to manage risk and keep pace with regulation.
Ultimately, productivity gains, better security and effective AI deployment all depend on robust connectivity. The businesses that get that right will be best positioned for success in 2026.
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Chris Sims is Chief Commercial Officer for BT Business.
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