In 2026 the artificial‑intelligence industry is moving from large‑scale hype toward practical applications. Experts highlight a turn toward smaller, fine‑tuned language models, the rise of world models that understand 3D environments, and new standards like the Model Context Protocol that connect AI agents to real‑world tools. Physical AI devices—including smart glasses, wearables, robotics and autonomous vehicles—are set to become mainstream as edge computing and cost‑effective models enable on‑device inference. The overall tone is optimistic, emphasizing AI as an augmenting partner for humans rather than a replacement.
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