UK SMEs will face increasing pressure to rethink their technology strategies in 2026, according to new predictions from Converged Solutions Group. The company expects artificial intelligence, cybersecurity, and skills shortages to reshape the way small and medium-sized businesses work with managed service providers.
Converged Solutions Group said many small businesses still approach technology as a collection of tools rather than a structured strategy. The company warned that this stance poses increased risks next year as digital systems underpin more of its core operations.
Gaps in AI adoption
The company predicts that artificial intelligence will be deployed “everywhere” in the small business market by 2026 as tools and platforms proliferate. It warned that most companies will remain unprepared to effectively leverage this technology.
Converged Solutions Group said the main barrier is not access to AI software. Instead, we expect that the lack of clean, structured, and accessible data will limit its practical application. The company said poor implementation increases the likelihood of compliance issues, poor decision-making and lost productivity.
The company advised small and medium-sized businesses to invest in data preparation, governance, architecture, talent, and integration before deploying AI. He said teams need to clearly understand their business objectives before evaluating what role AI can play.
The group also warned managed service providers against promoting AI as a simple plug-in solution. MSPs should focus on building a reliable foundation in their client environments before deploying advanced tools.
Growing cyber pressure
Converged Solutions Group expects cyber threats to continue to escalate in 2026 as regulations tighten. He said the UK was starting to work more closely with the EU on business compliance requirements.
The company predicted that failure to address cyber compliance would increase the risk of fines and reputational damage. The report said small businesses should consider cybersecurity as a basic operational requirement in the same category as payroll and taxes.
The company warned that many small businesses will still treat security as an option. He said organizations need a well-tested cybersecurity and business resiliency plan that fits their specific operations and puts resilience at the core.
Converged Solutions Group said MSPs must help their clients meet minimum compliance standards and maintain good operating practices. It added that providers may have to disengage from customers who refuse to comply.
Hybrid workload
The group said remote and flexible working patterns would be “here to stay” in 2026. It noted that many small and medium-sized businesses still rely on outdated technology, outdated policies, and fragmented systems to manage a distributed workforce.
Converged Solutions Group has combined modern work patterns with cloud-native platforms, zero trust security models, and increased reliance on unified communications. He said MSPs first need to understand their customers' current settings before suggesting changes.
The company said this assessment could lead to difficult discussions about the sunk costs of legacy technology. They argued that these conversations are necessary if organizations want a practical and sustainable hybrid working arrangement.
Skills as “currency”
The company described digital skills as the “new currency” for small and medium-sized businesses. The report said that technology investments without corresponding capabilities amount to wasted spending.
Converged Solutions Group warned that introducing systems such as AI without sufficient knowledge can distract staff, strain budgets and increase security risks. The report said SMEs will struggle to recruit and retain specialist talent unless they focus on upskilling and find new ways to raise capital and build training.
The group said each new technology needs to have a clear purpose in terms of business productivity. He advised executives to focus on training and measurable outcomes when integrating new tools.
The company also recommended that the leadership team appoint an internal champion for the new system. He said MSPs need to work with customers to close skills gaps, explain the role of new technology and ensure redundant systems are retired when necessary.
sustainability standards
Converged Solutions Group expects sustainability requirements to impact technology procurement more directly in 2026. For many small and medium-sized businesses, carbon-conscious management is moving from a priority to a mandate.
The company predicted further scrutiny of digital sustainability, including energy-efficient hardware and green hosting services. It said companies also need to examine materials and waste associated with the use of the technology.
The company highlighted the role of plastics and petrochemicals in global supply chains. The report cited estimates that around 6% of total oil consumption goes into plastic production, including raw materials and manufacturing energy, and that demand is expected to increase significantly by 2060 unless recycling technology advances.
Converged Solutions Group said circular economy is becoming increasingly important in both home and work environments. It urged companies to fully consider the impact of their practices, including reducing the use of petrochemical-based materials and products.
The company said MSPs should strive to reduce their dependence on petrochemicals in their supply chains. The report identified emissions from plastic use, transportation and transport as key areas. It added that providers should work with customers to change ordering and consumption patterns and offer reuse, upcycling and recycling as part of their services.
From meeting to delivery
Converged Solutions Group said many small businesses still view technology change as aspirational. He argued that without a clear plan next year, there will be less room for experimentation.
“As always, this is not about tools, it's about people, planning, preparation, and following through. Small businesses must stop tinkering and start designing technology strategies around structured data, secure systems, and skilled talent. MSPs must simply sell products. Ultimately, 2026 is the year we stop talking about 'digital transformation' and start delivering it with discipline, urgency and purpose,” says Lucy Harvey, PR & Communications. Converged Solutions Group.
