Technology developments, particularly in artificial intelligence (AI), dominated much of the headlines last year. That will continue to be the case in 2026 as the industry holds an important position at the intersection of innovation, human behavior and consumerism.

That much was clear when I attended this year’s Consumer Electronics Show (CES), which provided a glimpse into how companies are innovating in response to external factors. I saw products and services ranging from autonomous robotic mowers using 3D mapping that operate without perimeter wires to AI-powered tennis instructors that use monitored biomechanics and feed reaction time data into a coaching platform. Many of the trends for 2026 are carried over from previous years, including AI and robotics. But as those technologies rapidly evolve, companies continue to be innovative in their applications. Let’s take a closer look.

Many of us have already become much more familiar with deep-learning AI, generative AI, and large language models (LLMs), but so-called “physical AI” is quickly coming to the forefront. CES featured systems, machines and vehicles that can perceive, understand, perform and react to their physical surroundings.

Automotive. The technology in vehicles has far exceeded controlling the internal temperature for passengers. AI is dominating to the point that cars are becoming tools that evolve over their lifespans. That includes over-the-air software updates and AI agents that assist the driver, such as route planning and energy management that adjust in real time, often within defined operating conditions. There was also an emphasis on redefining cars as a so-called “third space”—a relaxing and intelligent environment between home and work with AI agents adjusting climate, delivering personalized entertainment and acting as a personal assistant. In addition to the personal in-car experience, AI has been influential on the economics of the automotive industry. Enhancements to the manufacturing process, research and development, sales and marketing, diagnostics, servicing, and the supply chain are set to reshape cost structures, improve operational efficiencies and unlock new sources of long-term value for automakers.

Digital health. Wearable devices that can monitor health and provide real-time metrics to users were the rage this year. The innovation in this space is reshaping wellness monitoring and preventative care by enabling continuous self‑tracking and more informed conversations between patients and medical professionals. In combination with AI, the real-time data that devices can provide allows individuals to make instant and personal adjustments to their sleep, diet and lifestyle habits instead of relying on industry benchmarks. The devices have come a long way from cosmetic enhancement tools to personalized health tools that appeal to both practitioners and consumers.

Transportation & distribution. How we transport people and products is becoming smarter, more innovative and safer as AI is increasingly embedding itself across the mobility ecosystem. AI-driven transport vehicles and eVTOLs (electric vertical take‑off and landing aircraft) are designed to perceive their environments in real time and anticipate user needs. These technologies could offer cleaner solutions, efficient movement of people and goods, reduce congestion, improve safety, and promise to reshape urban transportation.

BMO’s CES booth was surrounded by so many AI and humanoid robots I thought we were in some futuristic science fiction movie. I saw early demonstrations of future personal-use robotics, such as a home robot designed to perform everyday chores like folding laundry in controlled settings. Then there’s Boston Dynamics’ Atlas Robot, designed for industrial environments and demonstrated to operate in extreme temperatures ranging from –4°F to 104°F. These examples demonstrate how robots can eventually seamlessly integrate into our everyday lives, but we’re not fully there yet. Some of these consumer-focused robots cost tens of thousands of dollars and still require significant preprogramming or human oversight for individual tasks. The machine learning still has ways to go.

Technology is reshaping both the nature of cyberattacks and cybersecurity defense. Advancements in AI are creating better deepfakes, ransomware applications and phishing schemes. At the same time, however, organizations are using the same advancements in AI to deploy faster monitoring, detection, triage and response.

Cybersecurity isn’t just a technical issue; it intersects with brand trust, regulatory exposure, AI adoption and customer experience. Always important, cybersecurity will be a key theme in 2026.

It’s clear that the rapid pace of change will accelerate in 2026. The type of change that used to take decades or years now takes months or even weeks. What remains to be seen is how much of the promise comes to fruition, and how we can continue to keep up with the evolving risks. Buckle up and get ready for an exciting ride!