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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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For decades, trust in the digital workplace rested on familiar signals. We trusted faces on video calls, voices on the phone, and emails that appeared to come from people we knew. These cues felt human and intuitive. They anchored how decisions were made, approvals were granted, and access was authorized. AI-powered deepfakes have quietly broken that model ...

Cloud migration was supposed to be a one-way door. For most enterprises, it turns out it isn't. Cloud data repatriation is a real and growing trend. A new survey ... finds that 89% of organizations plan to expand their on-premises infrastructure footprint over the next two years — and 75% have already moved at least some workloads back from public cloud in the past 24 months. The findings point to a broad rethinking of where data belongs ...

Over the past few years, large language models (LLMs) have revolutionized the software industry. Given their ability to excel at multi-step reasoning, LLMs have helped enterprises streamline workflows and adapt to the unknown. However, employing such models comes with sky-high costs, latency issues, and limited flexibility. In the realm of IT operations, it is generally wiser to employ smaller, domain-specific models instead ...

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Let me start with something I've seen play out more times than I can count. A team hits a wall with the cloud. Costs creep up, then spike. Performance starts to feel inconsistent. Someone in finance asks a simple question like "why did this double?" and nobody has a clean answer ... Maybe this isn't the right place for everything. That realization feels like a breakthrough, like you've identified the problem. In reality, you've just identified the starting line ...

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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

Enterprises today operate in a real-time environment where uninterrupted access to trusted data has become a baseline expectation for users, applications and automated systems. Traditional DataOps models, built on manual effort and human triage, cannot keep pace with this always active demand. AI agents are emerging as the operational backbone, ensuring consistent data availability, reinforcing trustworthiness and enabling a level of scale that manual processes cannot achieve ...

For decades, trust in the digital workplace rested on familiar signals. We trusted faces on video calls, voices on the phone, and emails that appeared to come from people we knew. These cues felt human and intuitive. They anchored how decisions were made, approvals were granted, and access was authorized. AI-powered deepfakes have quietly broken that model ...

Cloud migration was supposed to be a one-way door. For most enterprises, it turns out it isn't. Cloud data repatriation is a real and growing trend. A new survey ... finds that 89% of organizations plan to expand their on-premises infrastructure footprint over the next two years — and 75% have already moved at least some workloads back from public cloud in the past 24 months. The findings point to a broad rethinking of where data belongs ...

Over the past few years, large language models (LLMs) have revolutionized the software industry. Given their ability to excel at multi-step reasoning, LLMs have helped enterprises streamline workflows and adapt to the unknown. However, employing such models comes with sky-high costs, latency issues, and limited flexibility. In the realm of IT operations, it is generally wiser to employ smaller, domain-specific models instead ...

For years, DevOps teams operated under a simple assumption: collect enough telemetry, and you can find and fix any problem. That assumption is breaking down. Modern enterprises now operate across microservices, hybrid cloud environments, APIs, Kubernetes, and highly automated delivery pipelines. Releases happen continuously, dependencies shift constantly, and failures spread faster than teams can diagnose them ...

New Relic surveyed IT and engineering leaders from the media and entertainment (M&E) sector to understand what's working — and where challenges persist with their observability practices. The findings reveal how M&E organizations are navigating rising platform complexity, audience expectations, and AI-driven change. Below are five takeaways that stand out ...

Let me start with something I've seen play out more times than I can count. A team hits a wall with the cloud. Costs creep up, then spike. Performance starts to feel inconsistent. Someone in finance asks a simple question like "why did this double?" and nobody has a clean answer ... Maybe this isn't the right place for everything. That realization feels like a breakthrough, like you've identified the problem. In reality, you've just identified the starting line ...

In MEAN TIME TO INSIGHT Episode 24, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network observability tool sprawl ... 

In cloud-native systems, scaling is often as simple as moving a slider. For on-premise databases, the stakes are different. Over-provisioning hardware is expensive. Under-provisioning leads to performance bottlenecks that are difficult to fix once the equipment is in the rack ...

When most people think about cybersecurity, they picture firewalls, encryption, and access controls — technical tools designed to protect systems and data. But beneath the technology lies a deeper set of principles about trust, decision-making, and resilience ... The best leaders don't eliminate risk. They manage it intelligently. And in many ways, cybersecurity offers a surprisingly useful playbook for doing exactly that ...