Hg Silicon Valley Leadership Summit 2026: navigating the AI transformation
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Something has shifted. A year ago, conversations about AI in enterprise software centred on co-pilots and personal productivity - promising tools that could make individuals faster. This year, the tone is different. The technology has crossed an invisible line. We are no longer talking about AI assistance; we are talking about fundamentally different operating models that put agents at the core. The gap between early movers and everyone else is widening faster than anyone anticipated.
At this year's summit, portfolio leaders and CEOs reunited with founders and investors from the frontier of AI to pressure-test what transformation really means now. The evidence is already in the room: engineering teams operating at 3x productivity with 20% fewer people, companies resolving 70% of support tickets through AI, and businesses launching entirely new product lines that now drive 50% of bookings. The consensus was striking: the window for transformation is open, but it won't stay that way forever. The companies that move decisively in the next twelve to eighteen months will compound their advantage; those that hesitate will find themselves facing competitors operating at an entirely different speed.
What follows are the critical themes that emerged - not as abstract predictions, but as practical imperatives for leaders navigating this moment.
1. Agentic AI is the non-negotiable in 2026
The shift from AI-assisted to AI-agentic is no longer theoretical. Models now reliably complete multi-hour autonomous tasks, and the trajectory suggests they will handle multi-day work by year-end. More significantly, the way frontier engineers work has fundamentally changed. They no longer write code with AI assistance - they orchestrate fleets of agents working in parallel, each tackling different features or problems simultaneously. The human role is shifting from execution to direction: defining problems, reviewing outputs, and steering strategic choices.
This has profound implications for how organisations think about productivity. Traditional metrics assumed a linear relationship between headcount and output. In an agentic world, that relationship becomes exponential for those who restructure their workflows accordingly. A single engineer running eight parallel agents isn’t eight times more productive in the old sense - they’re operating in an entirely different paradigm, exploring solution spaces that would have been impossible to traverse sequentially.
The critical mistake many organisations make is treating AI as an optimisation layer for existing processes. This captures only a fraction of the potential value and leaves them vulnerable to competitors who rebuild from first principles. The companies seeing transformational gains are those willing to question every assumption about how work gets structured - re-designing operating models from the ground up to harness these new ways of working, not just optimising how individual tasks get executed.
Perhaps most importantly, any assumption about AI limitations should now be revisited every six to twelve months. The models in use today will be the least capable models anyone will ever use again. Planning cycles built around annual roadmaps are fundamentally incompatible with this pace of change. The organisations succeeding are those operating on compressed timescales - thinking in weeks and months rather than quarters and years.
2. Get agent ready: anticipate the next bottlenecks
Acceleration without preparation creates new problems as fast as it solves old ones. As AI dramatically speeds up certain functions, constraints emerge in unexpected places predictable constraints emerge – the bottleneck simply shifts downstream. The organisations seeing the greatest sustained gains are those thinking end-to-end about their processes - not just optimising individual steps, but redesigning entire workflows to accommodate radically different capabilities.
In software development, this shift is already visible. Code generation is no longer the bottleneck - human review and steering are. When agents can produce thousands of lines of code in hours, the scarce resource becomes human comprehension. Then there’s a growing risk of what might be called “comprehension debt”: shipping code that works but that nobody truly understands. This creates fragility. When something breaks, teams find themselves unable to debug systems they didn’t really build. Security vulnerabilities slip through because review processes weren’t designed for this volume. The cracks appear suddenly and spread quickly.
The pattern repeats across functions. In go-to-market ("GTM"), AI can generate unlimited outreach and content - but the constraint shifts from production to strategy and execution quality. When product teams ship new capabilities in weeks, sales cycles measured in quarters create a fundamental mismatch. Enablement teams can't train salespeople fast enough to sell new capabilities, and incentive structures weren't designed for outcome-based pricing models. In operations, automation accelerates transaction processing - but compliance verification and exception handling become choke points.
A new capability is emerging to address this: go-to-market engineering. These are centralised ops teams that use AI to run dozens of experiments weekly, testing messages, channels, and targeting approaches at a pace traditional marketing structures cannot match. They generate Quarterly Business Review ("QBR") decks in minutes rather than hours, run automated social listening that flags competitive mentions in real time, and build personalised outreach at scale that would have required armies of Sales Development Representative ("SDRs"). The common thread is systematic experimentation - treating go-to-market as an engineering discipline where hypotheses are tested rapidly and insights compound over time.
There's an important caveat, however. Unlike engineering, where AI can directly accelerate the core work of writing code, GTM efficiency gains are rate-limited by how fast humans change perception and behaviour. AI can generate unlimited words, but the bottleneck is changing minds. The productivity gains won't mirror engineering precisely - but the gap between AI-native GTM organisations and traditional ones will still widen rapidly as the baseline capability rises.
The solution across all functions is a process-first mindset: fix processes before introducing tooling. Map the entire workflow. Identify where acceleration will create pressure. Redesign those constraint points before they become crises. Organisations that accelerate broken processes simply surface their dysfunction faster. Those that prepare end-to-end capture the full value of AI-driven speed.
3. Talent and culture matter more than ever
One of the most counterintuitive insights from the frontier is that AI doesn’t reduce the importance of talent - it amplifies it. AI raises the floor for individual productivity, making average performers more capable. But it raises the ceiling far more dramatically. The best people, with the right curious mindset and willingness to experiment, become extraordinarily more powerful. The gap between top performers and everyone else widens, not narrows.
This has significant implications for talent strategy. Your best people are worth more this year than last year, and they’ll be worth even more next year. Investing in identifying, developing, and retaining high performers yields compounding returns in an AI-enabled environment. Conversely, there’s a harder truth that leaders must confront: a meaningful percentage of current talent may not make the transition. Not because they lack intelligence, but because they lack the adaptability or curiosity to fundamentally change how they work.
Cultural resistance can come from multiple directions. Executives and individual contributors often embrace AI readily - one group sees the P&L impact, the other wants to work smarter. The friction tends to sit in the middle, where influence has traditionally scaled with headcount and efficiency gains can feel like a threat rather than an opportunity.
Breaking this pattern requires leaders to go first - to publicly embrace beginner status, to learn alongside their teams, to create genuine psychological safety for experimentation and failure. The courage to admit you’re not the cleverest person in the room is rare, but it’s becoming a prerequisite for leading through this transition. Organisations that can’t cultivate this culture will find their transformation stalled by the very people meant to be driving it.
4. Innovation needs a new operating model
The traditional approach to product development - top-down annual roadmaps, careful scoping before engineering begins, extensive design iterations before building - was designed for a world of scarce engineering capacity. When coding was expensive and slow, it made sense to plan exhaustively before committing resources. That world no longer exists. When agents can prototype features in hours, the entire planning paradigm must shift.
The new model inverts the traditional sequence. Instead of specifying exhaustively then building, teams prototype rapidly then validate with customers. Instead of debating features in conference rooms, they ship variations and measure response. The cost of being wrong has dropped dramatically - which means the optimal strategy involves far more experimentation and far less up-front planning. Twelve-month roadmaps don’t survive contact with this pace of technological change.
This requires structural changes. Teams need to get smaller and more autonomous - small enough to move fast, empowered enough to make decisions without escalation. They need deep customer intimacy, not mediated through layers of product management, but direct and continuous. And they need freedom to pursue entrepreneurial innovation within clear strategic guardrails. The role of leadership shifts from directing roadmaps to setting vision and removing obstacles.
There’s a cautionary tale in the experience of companies that shipped hundreds of AI capabilities only to discover the vast majority weren’t being consumed by customers. Feature factories optimised for output rather than outcomes. The discipline required is ruthless prioritisation around high-value use cases, combined with tight feedback loops that kill underperforming initiatives quickly. Building more has never been easier; building what matters requires more judgment than ever.
5. The SaaS expansion: from workflow to work
For B2B software companies, AI presents both a challenge and a generational opportunity. The landscape is shifting: capabilities that once took years to build can now be prototyped in weeks. Some procurement teams are exploring internal alternatives during vendor evaluations, and switching costs that once protected incumbents are becoming less reliable. The old moats - implementation complexity, integration depth - still matter, but they're no longer enough on their own. SMEs are particularly innovative adopters of this approach. Faced with vertical SaaS solutions that don’t quite fit their needs, they increasingly turn to AI-powered development platforms first. Custom CRMs built for specific workflows, form tools replaced in minutes, HR systems tailored to actual processes rather than generic templates. The psychology has shifted: it’s more rewarding to build something that fits perfectly than to adapt to software built for someone else.
But the opportunity for incumbents is equally significant. You have distribution, customer relationships, and domain expertise that start-ups can't replicate overnight. The companies moving fastest are using AI to expand what they offer - shifting from tools that support work to platforms that can deliver outcomes directly.
One challenge worth noting: agents need rich context to be effective, and traditional systems of record may not capture enough. As Sarah Guo observed, the best salespeople know things about their customers that never make it into the CRM. Incumbents should be asking whether their data architecture is ready to feed the next generation of AI.
Two strategic paths are crystallising. The first is to become a platform: structure as API-first, let customers and agents build on top, create lock-in through the ecosystem rather than switching costs. The second is to sell work directly: shift from tools that help humans do work to outcomes delivered by AI agents, priced on value rather than seats. The choice isn't binary - many companies will pursue both through distinct product lines - but it must be made explicitly. Drifting between models captures the benefits of neither. And the window matters: incumbents who don't move to deliver this value will create space for new entrants who will.
6. A new leadership imperative
The technology is ready. The tools exist. The path is increasingly clear. What remains is the hardest part: leading an organisation through genuine transformation. Change management has always been difficult, but the stakes have never been higher. Early movers don’t just gain temporary advantage - they enter a compounding cycle where better AI capabilities fund more investment in AI capabilities, widening the gap with each iteration.
The transformations that succeed share common characteristics. They start with unambiguous commitment from the top - not enthusiasm for AI in the abstract, but willingness to change everything about how the organisation operates. Every process, every job description, every incentive structure becomes subject to fundamental questioning. Leaders embrace uncertainty publicly, acknowledging they don’t know exactly what the organisation will look like in twelve months while committing fully to the journey.
Successful transformations also require leaders to go first. Executives who haven’t personally used the tools, who delegate AI understanding to technical teams, who maintain comfortable distance from the messy reality of adoption - these leaders become obstacles. The organisations moving fastest are those where senior leaders have rebuilt their own skills, publicly embracing beginner status and learning alongside their teams.
The cultural mechanism matters as much as the strategic direction. Clear expectations that transformation isn’t optional, combined with genuine support for those making the transition. Training, enablement, patience with the learning curve - but ultimately, accountability for adoption. The uncomfortable truth is that some people won’t make the journey. The compassionate approach is clarity: here’s the direction, here’s the support, here’s the timeline. The organisations that thrive will be those that move decisively while bringing their people along.
The momentum continues to build
The summit’s core message was unmistakable: the technology is ready, the transformation is possible, and the window is now. What was most striking was the consistency across perspectives - from frontier AI labs to portfolio companies in the midst of transformation, the diagnosis and prescription aligned remarkably. This isn’t speculative futurism. It’s the lived experience of organisations that have already crossed the threshold.
The competitive landscape is bifurcating. On one side are organisations that have paid the activation energy for genuine transformation - rebuilt their operating models, restructured their teams, embraced uncertainty while executing innovatively. On the other side is everyone else: experimenting, piloting, sprinkling AI on existing processes, capturing a fraction of the potential value. The exponential between these two groups is widening with each passing month.
The question for every leader is simple and urgent: which side of that divide will you be on? The momentum continues to build. The window remains open, but not indefinitely. The time is now.
This document may contain, and the accompanying alongside the video clips may include, forward-looking statements about AI technologies and business strategies based on the views of summit participants as of February 2026. These statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied. The AI landscape is evolving rapidly, and capabilities or timelines discussed should not be considered guarantees of future events or performance. Performance examples represent specific experiences and may not be typical. Past performance is not an reliable indicator of future performance. Views expressed by individual speakers are their own and do not necessarily represent the views of Hg or its affiliates their affiliated organizations.
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