The Tech Opportunities and Challenges for the Year Ahead

Happy new year to all our clients and associates and we hope 2026 will be an exciting and prosperous year for everyone.

As January is the month of resolutions, plans and goals, we thought we’d set out some of the key IT and tech priorities for the year. Ranging from cyber security changes to AI development, Daniel and Adam talk us through what’s on the horizon for the next 12 months.

Securing the Supply Chain
Focusing on your supply chain is an area that should be a priority for 2026. We’ve talked about it before (read our ‘SMEs and Cyber Crime’ article: https://shorten.ly/OvtBzb) but now is the time to build extra resilience into your systems, as Daniel explains.

“Whilst you may be confident in your own security protocols, one area that you have less control over is your suppliers, especially outsourced services such as payroll and marketing firms that have access to your data.

“You often have no idea what security they have in place and what governance they follow. 2026 is the year to introduce systems to make sure your supply base is following protocols that meet your standards. This will improve your resilience and reduce the risk of threats.”

Updates to Cyber Regulations
April sees updates to the government’s Cyber Essentials scheme. Some of the key changes include a clear definition of cloud services, improved scoping rules for internet-connected devices, updated application development guidance and, most notably, multi-factor authentication (MFA) becomes mandatory wherever it’s available.

Said Daniel: “Whilst the changes aren’t huge, it’s good to see that the scheme is being reviewed and updated to reflect what is happening in the real world. Most of our clients operate best practice and are already implementing these updates.”

Also one to have on the radar is the UK Cyber Security and Resilience Bill, which aims to update and strengthen the country’s cyber security framework. It was introduced to parliament at the end of 2025 and is in its initial stages, likely to be phased in gradually over 2026 and 2027.

AI Evolution
The rise of AI will continue in 2026, with businesses incorporating it into everyday operations.

Explained Adam: “We are starting to see the practical application of AI amongst our clients, especially in the area of data analysis. Lifeline IT can help you integrate AI into your own business systems, by building you internal AI engines that are accurate and secure.”

The Death of the Server
Whilst AI is on the rise, the prediction from Daniel and Adam is that 2026 will see the demise of the physical server.

“It’s been happening for some time, but we think this year will mark the end of the physical onsite hardware server, as more companies migrate to full cloud servers for financial and logistical reasons,” said Adam.

“But it goes without saying that even if you are using a cloud server, you still need back-up and this can be another cloud-based option if you no longer use a physical server,” added Daniel.

Added Adam: “If you need help or guidance with anything we’ve talked about in this article, don’t hesitate to get in touch with myself, Daniel or one of the Lifeline IT team.”