Data Modernization and AI Horizons Report 2026

This document is a research report focusing on data modernization and artificial intelligence as of 2026. It presents findings from HFS Research regarding the evolving landscape of data and AI-driven analytics. The report discusses the significant shift in enterprises' approaches, moving from merely building data platforms towards achieving AI-driven outcomes aimed at faster and smarter decision-making. The study evaluates service providers based on their capabilities across the data modernization and AI value chain, categorizing them into three horizons. These horizons reflect the varying levels of integration, from focused specialization to comprehensive ecosystem orchestration. The report outlines key challenges enterprises face, such as gaps in AI readiness, data governance issues, and structural barriers to scaling AI, and emphasizes the importance of data quality and architecture as competitive advantages. The findings aim to inform organizations about the current state and future trends in data modernization and AI, providing insights into market dynamics and the operational maturity required for successful implementation.