Since we launched AI Ireland, we have interviewed over 750 global AI leaders on the AI Ireland podcast and evaluating hundreds of groundbreaking submissions for the AI Awards. From these conversations, a clear signal has emerged: the era of “Chat” is ending, and the era of “Action” is beginning.
For the last two years, we have been obsessed with Generative AI, from the ability to draft an email or generate an image. But as we look toward 2026, the paradigm is shifting from AI as a consultant to AI as a colleague. This involves two critical pillars: Agentic AI and Embedded (Physical) AI.
1. Agentic AI: Beyond the Prompt
Most current AI usage is transactional: you provide a prompt, and the machine provides a response. Agentic AI flips this script. An agent is an autonomous system that, when given a high-level goal, determines the steps, uses the necessary tools and executes the workflow with minimal human intervention.
Gartner predicts that by 2026, 40% of enterprise applications will feature these task-specific agents. As Jennifer Geraghty Ryan (Principal Product Manager at Microsoft) discussed on a recent episode of the AI Ireland podcast, we are moving toward “Multi-Agent Collaboration,” where different AI agents – researchers, coders and project managers – work together to solve complex business problems.
For Irish businesses, this means “Invisible Workflows.” Instead of a human manually reconciling invoices or managing logistics, an agent handles the end-to-end process, only “looping in” a human for final approval or high-level strategic decisions.
2. Physical & Embedded AI: Intelligence at the Edge
While agents handle digital tasks, Embedded AI (often called Physical AI) is bringing intelligence into the material world. By 2026, AI won’t just live in the cloud; it will be built directly into the “edge”- the devices, robots, and sensors surrounding us.
This is a game-changer for Ireland’s core industries:
Manufacturing: We are seeing the rise of industrial robots that don’t just follow a script but “learn” via tactile sensors to adapt to varied objects on a production line.
Retail & Logistics: As John Clancy (CEO of Galvia and 2025 AI Person of the Year) recently highlighted, AI is now unifying retail data to predict demand and optimise inventory in real-time, moving intelligence directly to where the physical goods are managed.
Sustainability: Smart sensors in our energy grids are now using embedded AI to detect structural fatigue or power surges, re-routing resources autonomously to prevent outages.
The Nuance: Trust, Transparency, and the 2026 Strategy
The most common question we get is: “How do we manage the risk of autonomous machines?” The transition to a proactive partner requires a “Trust-First” framework. As Gartner warns, CIOs have a narrow three-to-six-month window to define their agentic strategy before falling behind. To succeed, leadership must focus on:
Evolving from Prompting to Orchestration: The new “Human-in-the-loop” role isn’t about typing queries; it’s about governing a fleet of agents.
Combatting “Agentwashing“: Be wary of vendors rebranding old automation as “Agentic.” True agents possess reasoning and iterative learning capabilities.
Explainability: As agents take action, we must ensure they can “show their work” to comply with the EU AI Act and maintain corporate accountability.
Final Thoughts
By 2026, the competitive advantage will no longer belong to those who can generate content, but to those who can orchestrate action. In Ireland, we have the ecosystem and the talent to lead this charge. The technology is ready; the question is, are our leadership mindsets?
Call to Action
If you’d like to delve deeper into how these trends can reshape your organisation, we would be delighted to discuss them in more detail. Invite Mark Kelly, Founder of AI Ireland, to speak at your next team meeting, conference or strategy session. We can explore practical ways to harness AI responsibly, meet sustainability goals, and navigate the evolving consumer landscape. Let’s work together to ensure Ireland remains at the vanguard of innovation in 2026 – and beyond.
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