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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

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Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

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

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...