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Agentic AI, Realistic Expectations and the Future of IT Operations in 2026

Phil Christianson
Xurrent

Agentic AI is a major buzzword for 2026. Many tech companies are making bold promises about this technology, but many aren't grounded in reality, at least not yet. This coming year will likely be shaped by reality checks for IT teams, and progress will only come from a focus on strong foundations and disciplined execution.

Agentic AI Will Be Restricted to Basic IT Tasks in 2026

In 2026, there's going to be a significant gap between what vendors market and what IT leaders actually allow AI agents to do. IT teams are rightfully cautious about this technology because the risk profile of enterprise infrastructure is fundamentally different from other AI use cases.

The blast radius of missteps is very large. Autonomous infrastructure actions, like adding memory or scaling resources, can trigger outages, security issues or cascading failures. These expensive mistakes can actually set implementation back by months.

Plus, many "simple" tasks aren't actually simple. For example, adding memory to a virtual machine may require a restart that introduces downtime, increases cloud costs or violates internal policies tied to licensing or compliance. In many cases, the alert triggering the action isn't even caused by a resource shortage, but by an application issue or upstream dependency. Experienced IT professionals know when not to follow the playbook — context that AI agents don't yet consistently understand.

I had a leader of a mid-size engineering team say to me, "Why would I automate site reliability and infrastructure work? It's what we do better than our competition and the reason we hired some of the best talent available to do it." In other words, he believed that IT operations were part of their competitive advantage and thus should be invested in, not outsourced. While AI may introduce new avenues for automation, it doesn't change basic business principles.

That mindset also highlights the importance of scale. In smaller or mid-sized organizations, an SRE team may spend 5-10 hours a month handling routine code release issues. While AI tools exist that could automate some of that work, they come with real tradeoffs — cost, setup and ongoing oversight. In those cases, eliminating a small amount of effort may not justify the investment, especially if operational excellence is part of the company's differentiation.

However, this equation looks different for Fortune 100 companies with tens of thousands of engineers; the same recurring issues can quickly multiply into hundreds or even thousands of hours. At this scale, automation can become less about optimization at the margins and more about operational necessity. The real challenge for IT leaders is knowing where their teams spend time and applying automation selectively — where it meaningfully supports the business, rather than undermines what makes it competitive.

Most AI Investments in Service Management Will Underperform

Many IT organizations are going to be disappointed with their AI investments in 2026. The disappointment stems from skipping the foundational work.

AI can't clean up a messy knowledge base or fix poorly documented processes. These issues will limit AI's effectiveness while also exposing — or even amplifying — process gaps. The result is friction rather than efficiency.

Some organizations also adopted tools without knowing where their real bottlenecks are (see above). In these scenarios, AI becomes a solution in search of a problem. For example, an organization may deploy an AI chatbot to reduce ticket volume when the real issue is outdated knowledge articles and unclear request workflows. The tool won't solve the underlying problem, making it difficult to demonstrate ROI.

It's also hard to quantify a tool's value when you don't have a baseline. IT leaders must specifically define the problem AI will solve, then measure outcomes, such as ticket deflection rates and mean time to resolution, before and after AI implementation. If you don't know what you're measuring, you can't prove improvements.

Infrastructure Monitoring Will Be a Strategic IT Priority

In 2026, the limits of the traditional IT service desk model will be hard to ignore. The strategy doesn't support modern IT infrastructure. Teams aren't just dealing with laptops, printers and mobile devices that generate tickets when something goes wrong.

Most organizations now run critical systems in the cloud, rely on complex integrations and support applications that sit outside established reporting workflows. A broken server doesn't call the service desk; it just stops working, often in the middle of the night, and the consequences are far more severe than a single employee issue.

This shift to distributed systems forces IT teams to rethink workflows, tooling and escalation models. Adapting is not as simple as implementing continuous monitoring. Poor monitoring creates human exhaustion. When alerts lack context or urgency, on-call teams are forced to respond blindly, often waking up for issues that aren't critical. IT departments need systems that can detect failures, correlate signals across multiple tools and route issues to the right people with the right level of urgency.

Proactive IT support strategies also make the department a strategic partner rather than a cost center. Leaders can use monitoring data to clearly explain system health, risk exposure and potential downstream impact. This perspective informs business decisions grounded in operational reality.

Looking Ahead

IT teams must modernize their systems without losing control. There are plenty of promising AI capabilities emerging, but that doesn't mean the technology is ready to run the show.

In 2026, IT leaders must clean up their processes and workflow, find the bottlenecks and adopt tools that solve a defined problem, not an assumption. This discipline sets teams up for successful implementation. Let's see how agentic AI does on the basic tasks in the year ahead, and maybe 2027 will bring closer alignment between agentic AI marketing promises and operational realities.

Phil Christianson is Chief Product Officer at Xurrent

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Agentic AI, Realistic Expectations and the Future of IT Operations in 2026

Phil Christianson
Xurrent

Agentic AI is a major buzzword for 2026. Many tech companies are making bold promises about this technology, but many aren't grounded in reality, at least not yet. This coming year will likely be shaped by reality checks for IT teams, and progress will only come from a focus on strong foundations and disciplined execution.

Agentic AI Will Be Restricted to Basic IT Tasks in 2026

In 2026, there's going to be a significant gap between what vendors market and what IT leaders actually allow AI agents to do. IT teams are rightfully cautious about this technology because the risk profile of enterprise infrastructure is fundamentally different from other AI use cases.

The blast radius of missteps is very large. Autonomous infrastructure actions, like adding memory or scaling resources, can trigger outages, security issues or cascading failures. These expensive mistakes can actually set implementation back by months.

Plus, many "simple" tasks aren't actually simple. For example, adding memory to a virtual machine may require a restart that introduces downtime, increases cloud costs or violates internal policies tied to licensing or compliance. In many cases, the alert triggering the action isn't even caused by a resource shortage, but by an application issue or upstream dependency. Experienced IT professionals know when not to follow the playbook — context that AI agents don't yet consistently understand.

I had a leader of a mid-size engineering team say to me, "Why would I automate site reliability and infrastructure work? It's what we do better than our competition and the reason we hired some of the best talent available to do it." In other words, he believed that IT operations were part of their competitive advantage and thus should be invested in, not outsourced. While AI may introduce new avenues for automation, it doesn't change basic business principles.

That mindset also highlights the importance of scale. In smaller or mid-sized organizations, an SRE team may spend 5-10 hours a month handling routine code release issues. While AI tools exist that could automate some of that work, they come with real tradeoffs — cost, setup and ongoing oversight. In those cases, eliminating a small amount of effort may not justify the investment, especially if operational excellence is part of the company's differentiation.

However, this equation looks different for Fortune 100 companies with tens of thousands of engineers; the same recurring issues can quickly multiply into hundreds or even thousands of hours. At this scale, automation can become less about optimization at the margins and more about operational necessity. The real challenge for IT leaders is knowing where their teams spend time and applying automation selectively — where it meaningfully supports the business, rather than undermines what makes it competitive.

Most AI Investments in Service Management Will Underperform

Many IT organizations are going to be disappointed with their AI investments in 2026. The disappointment stems from skipping the foundational work.

AI can't clean up a messy knowledge base or fix poorly documented processes. These issues will limit AI's effectiveness while also exposing — or even amplifying — process gaps. The result is friction rather than efficiency.

Some organizations also adopted tools without knowing where their real bottlenecks are (see above). In these scenarios, AI becomes a solution in search of a problem. For example, an organization may deploy an AI chatbot to reduce ticket volume when the real issue is outdated knowledge articles and unclear request workflows. The tool won't solve the underlying problem, making it difficult to demonstrate ROI.

It's also hard to quantify a tool's value when you don't have a baseline. IT leaders must specifically define the problem AI will solve, then measure outcomes, such as ticket deflection rates and mean time to resolution, before and after AI implementation. If you don't know what you're measuring, you can't prove improvements.

Infrastructure Monitoring Will Be a Strategic IT Priority

In 2026, the limits of the traditional IT service desk model will be hard to ignore. The strategy doesn't support modern IT infrastructure. Teams aren't just dealing with laptops, printers and mobile devices that generate tickets when something goes wrong.

Most organizations now run critical systems in the cloud, rely on complex integrations and support applications that sit outside established reporting workflows. A broken server doesn't call the service desk; it just stops working, often in the middle of the night, and the consequences are far more severe than a single employee issue.

This shift to distributed systems forces IT teams to rethink workflows, tooling and escalation models. Adapting is not as simple as implementing continuous monitoring. Poor monitoring creates human exhaustion. When alerts lack context or urgency, on-call teams are forced to respond blindly, often waking up for issues that aren't critical. IT departments need systems that can detect failures, correlate signals across multiple tools and route issues to the right people with the right level of urgency.

Proactive IT support strategies also make the department a strategic partner rather than a cost center. Leaders can use monitoring data to clearly explain system health, risk exposure and potential downstream impact. This perspective informs business decisions grounded in operational reality.

Looking Ahead

IT teams must modernize their systems without losing control. There are plenty of promising AI capabilities emerging, but that doesn't mean the technology is ready to run the show.

In 2026, IT leaders must clean up their processes and workflow, find the bottlenecks and adopt tools that solve a defined problem, not an assumption. This discipline sets teams up for successful implementation. Let's see how agentic AI does on the basic tasks in the year ahead, and maybe 2027 will bring closer alignment between agentic AI marketing promises and operational realities.

Phil Christianson is Chief Product Officer at Xurrent

Hot Topics

The Latest

The gap is widening between what teams spend on observability tools and the value they receive amid surging data volumes and budget pressures, according to The Breaking Point for Observability Leaders, a report from Imply ...

Seamless shopping is a basic demand of today's boundaryless consumer — one with little patience for friction, limited tolerance for disconnected experiences and minimal hesitation in switching brands. Customers expect intuitive, highly personalized experiences and the ability to move effortlessly across physical and digital channels within the same journey. Failure to deliver can cost dearly ...

If your best engineers spend their days sorting tickets and resetting access, you are wasting talent. New global data shows that employees in the IT sector rank among the least motivated across industries. They're under a lot of pressure from many angles. Pressure to upskill and uncertainty around what agentic AI means for job security is creating anxiety. Meanwhile, these roles often function like an on-call job and require many repetitive tasks ...

In a 2026 survey conducted by Liquibase, the research found that 96.5% of organizations reported at least one AI or LLM interaction with their production databases, often through analytics and reporting, training pipelines, internal copilots, and AI generated SQL. Only a small fraction reported no interaction at all. That means the database is no longer a downstream system that AI "might" reach later. AI is already there ...

In many organizations, IT still operates as a reactive service provider. Systems are managed through fragmented tools, teams focus heavily on operational metrics, and business leaders often see IT as a necessary cost center rather than a strategic partner. Even well-run ITIL environments can struggle to bridge the gap between operational excellence and business impact. This is where the concept of ITIL+ comes in ...

UK IT leaders are reaching a critical inflection point in how they manage observability, according to research from LogicMonitor. As infrastructure complexity grows and AI adoption accelerates, fragmented monitoring environments are driving organizations to rethink their operational strategies and consolidate tools ...

For years, many infrastructure teams treated the edge as a deployment variation. It was seen as the same cloud model, only stretched outward: more devices, more gateways, more locations and a little more latency. That assumption is proving costly. The edge is not just another place to run workloads. It is a fundamentally different operating condition ...

AI can't fix broken data. CIOs who modernize revenue data governance unlock predictable growth-those who don't risk millions in failed AI investments. For decades, CIOs kept the lights on. Revenue was someone else's problem, owned by sales, led by the CRO, measured by finance. Those days are behind us ...

Over the past few years, organizations have made enormous strides in enabling remote and hybrid work. But the foundational technologies powering today's digital workplace were never designed for the volume, velocity, and complexity that is coming next. By 2026 and beyond, three forces — 5G, the metaverse, and edge AI — will fundamentally reshape how people connect, collaborate, and access enterprise resources ... The businesses that begin preparing now will gain a competitive head start. Those that wait will find themselves trying to secure environments that have already outgrown their architecture ...

Ask where enterprise AI is making its most decisive impact, and the answer might surprise you: not marketing, not finance, not customer experience. It's IT. Across three years of industry research conducted by Digitate, one constant holds true is that IT is both the testing ground and the proving ground for enterprise AI. Last year, that position only strengthened ...