TXP warns on low code, AI overload & supplier risk in 2026

Tech consultancy TXP has set out a series of predictions for 2026, warning that organisations face rising risks from low-code development, shifting data architectures, AI-driven cognitive overload and tighter scrutiny of supplier security.

The Birmingham-based firm expects many of the technologies that drove rapid change in 2025 to create new structural and governance challenges in the year ahead.

TXP's leadership team said boards and IT leaders now face decisions on how they manage software built by non-specialists, prepare data for AI systems and handle mounting compliance demands across complex supply chains.

Low-code 'legacy' risk

Head of Development Andy Beardshaw said low-code tools and citizen development are starting to resemble past waves of uncontrolled software growth inside large organisations.

"The growth of low-code and the citizen developers will give rise to the next legacy crisis. While low-code promised to simplify development, many organisations are discovering they can't maintain what they have built. This will create a new form of technical debt with IT teams left to unravel tools and applications developed by business users without sufficient oversight or long-term planning," said Andy Beardshaw, Head of Development, TXP.

Beardshaw said many firms now rely on applications created outside central IT functions. He said these teams often lack structured testing, documentation and compliance processes.

"If organisations are to persist with low-code tools, they will need to close the gaps in testing, documentation and compliance oversight, otherwise it will quickly become a legacy ticking time bomb," said Beardshaw.

New 'V' for data

TXP expects data leaders to shift their focus from traditional metrics of data management towards how information is represented inside AI systems.

Head of Data and AI Dimitrios Chalvatzis said the longstanding model of the "three Vs" of data management is changing.

"In 2026, the spotlight will shift from the three traditional Vs of data - Volume, Velocity and Variety - to a new priority: Vectorbases. Data leaders spent decades worrying about how much data they had and how fast it moved. But in the age of AI, the challenge is understanding how data is represented. Vectors are the solution, and the beating heart of LLMs, enabling AI to reason, recall and relate information like never before," said Dimitrios Chalvatzis, Head of Data and AI, TXP.

Chalvatzis said the shift will affect how organisations design their data architectures. He described an emerging move away from traditional databases towards systems that store and search vector representations of data.

"The move from databases to vectorbases won't be just another tech wave - but a new language for data intelligence," said Chalvatzis.

AI decision strain

TXP also warned that advances in AI will place new pressures on workers as they adapt to faster flows of information.

Practise Lead Nick Hill said the pace of AI-generated outputs now exceeds the human ability to review and understand them in many settings.

"In 2026, the constant influx of information created by AI will start to overwhelm users, as the human brain fails to keep up with machine speed. With large language models, problem-solving that once took days or weeks can now happen in seconds, meaning AI systems are generating vast amounts of data, insights and recommendations. But AI tools often lack clear explanations or transparency about how conclusions are reached," said Nick Hill, Practise Lead, TXP.

Hill said many workers already face long streams of AI-generated summaries, recommendations and draft content. He said the volume and apparent confidence of these outputs can mask errors and gaps.

"The risk of cognitive overload is real. Workers are confronted with an endless stream of seemingly credible answers, yet the human brain isn't designed to process information at that speed. This will create decisions fatigue, as individuals must verify and interpret outputs faster than ever. The problem will be compounded by AI's tendency to sound confident even when it's wrong, leading to constant second-guessing. This will have a profound impact on how teams work in 2026, highlighting the need for organisations to prioritise both the accuracy of their AI outputs and the wellbeing of the people using them," said Hill.

Supplier security pressure

TXP expects supply chain cybersecurity to remain a board-level concern, as large organisations reassess the risks created by third- and fourth-party vendors.

Partner for Security Mike Smith said recent cyber incidents have exposed weaknesses beyond direct suppliers. He said regulators and governments now place greater emphasis on resilience across extended supply chains.

"In 2026, third- and fourth-party cybersecurity will come under even greater scrutiny The last 12 months, have seen a spate of major attacks - including JLR - that exploited supply chains. The government also introduced its long-awaited Cyber Security and Resilience Bill to parliament, putting a heavy emphasis on supplier resilience. As a result, large companies will be demanding even greater assurances over the cybersecurity practices of all their suppliers," said Mike Smith, Partner - Security, TXP.

Smith said many vendors will face new due diligence requirements from enterprise customers. He said buyers are likely to assess testing regimes, incident reporting arrangements and response planning in more detail.

"Companies that fail to meet required security levels risk losing business over the coming months as the risk for their customers is simply too high. Security initiatives, such as red teaming and penetration testing, and developing robust processes around reporting, will be crucial for suppliers, ensuring their security standards stand up to external scrutiny," said Smith.

TXP said these trends will shape investment decisions across IT, data and security functions as organisations plan for 2026.