A Glimpse into the Future: Festivus Edition

Let’s hop in our imaginary time machine and zoom ahead to December 23, 2025. What does the tech landscape look like? According to a recent “Squawk Pod” discussion featuring CNBC’s Steve Kovach, the future of AI, tech, and crypto in 2026 is all about commoditization and consolidation. It’s a future where the hype simmers down, and the realities of business start to take over. No flying cars, sadly, but some solid, predictable shifts.

The AI Shakeout: From Boom to Business

The AI gold rush can’t last forever. The discussion highlighted how AI development, after the initial excitement, will likely settle into a phase of commoditization. The basic tools and technologies become widely available, more like utilities than cutting-edge innovations. This means that the companies providing the underlying AI infrastructure might see their profit margins shrink as competition intensifies. And it’s not just about cost, it’s about who can actually use all this fancy new AI. We’re already seeing some of this happen, as more and more “AI-powered” features become standard in everyday software. The real differentiator will be how businesses integrate AI to solve real problems and create genuine value.

Tech Consolidation: The Big Get Bigger

Consolidation is a recurring theme in the tech world, and all signs point to that trend continuing. As the market matures, expect to see larger companies acquiring smaller, innovative startups. This could be driven by a need to acquire specific technologies, talent, or market share. Think of it as the tech giants playing a game of corporate chess, strategically positioning themselves for long-term dominance. While this can be good for investors in the short term (hello, acquisition premium!), it also raises concerns about monopolies and stifled innovation. Fewer players mean less competition, which could ultimately hurt consumers.

Crypto’s Crossroads: Regulation and Real-World Use

Cryptocurrency’s path to mainstream adoption is still hazy. 2026 will be a crucial year for regulation. Governments worldwide are grappling with how to manage this emerging asset class, and the decisions they make will significantly impact its future. Clear and consistent regulations could bring much-needed stability and encourage institutional investment. But overly restrictive rules could stifle innovation and drive crypto activity underground. Beyond regulation, the real test for crypto will be its ability to find practical, real-world applications. It needs to move beyond speculation and become a useful tool for everyday transactions or solving specific problems. If crypto can’t demonstrate genuine utility, it risks becoming a niche asset class rather than a mainstream financial instrument.

The Privacy Question: A Never-Ending Battle

Data privacy will remain a major concern, especially given the increasing use of AI and data collection. The discussion mentioned the role of former Facebook Chief Privacy Officer, highlighting the ongoing challenges companies face in protecting user data. Consumers are becoming more aware of how their data is being used, and they’re demanding greater control and transparency. Companies that prioritize privacy and build trust with their users will have a significant competitive advantage. This means not just complying with regulations, but also adopting ethical data practices and giving users meaningful choices about how their information is collected and used. The privacy battle is far from over, and it will continue to shape the tech landscape in the years to come.

Beyond the Hype: Building Sustainable Tech

The overall picture painted by the “Squawk Pod” discussion is one of maturation and realism. The days of endless hype and unsustainable growth are likely coming to an end. The focus will shift to building sustainable businesses that generate real value and address genuine needs. This means a greater emphasis on profitability, efficiency, and responsible innovation. The tech world will need to move beyond chasing the next shiny object and focus on creating lasting solutions that benefit society as a whole.

Looking Ahead: Navigating the Future

Predicting the future is always a risky business, but the trends discussed in the podcast – commoditization, consolidation, regulation, and the importance of privacy – offer valuable insights into what to expect in the years ahead. By understanding these forces, businesses and individuals can better prepare for the challenges and opportunities that lie ahead. It’s a future that demands adaptability, strategic thinking, and a commitment to building a more sustainable and responsible tech ecosystem. The key takeaway? The future isn’t about flashy gadgets; it’s about solid foundations and responsible growth.