What business leaders should be focusing on in 2026

Last year, Managing Director at ACT, Richard Spear, shared his predictions for the months ahead in the work-based learning landscape. These included growing demand for digital and AI skills, alongside a continued appetite for professional qualifications that directly support career progression.

2025 proved to be a pivotal year for work-based learning. Despite a challenging economic backdrop for many sectors, upskilling remained firmly at the forefront of both employers’ and employees’ minds. In Wales in particular, persistent skills shortages and rapid technological change meant that many organisations began reassessing how they attract, develop and retain talent.

As we move into 2026, Richard looks at the trends business leaders are likely to encounter in the coming months and how responding to them can strengthen both organisational performance and the wider working landscape in Wales.

A human focus in an increasingly AI-enabled world

The rollout and development of artificial intelligence reached new levels of maturity in 2025. AI tools became commonplace across industries, moving well beyond experimental use and into day-to-day operations for organisations of all sizes.

This rapid adoption has highlighted both the opportunities AI presents and the importance of using it responsibly. Alongside efficiency gains, many organisations are now recognising the need for clearer governance, digital confidence and practical understanding among staff.

As AI tools increasingly automate routine tasks, including some traditionally entry-level roles, new skills are emerging. Employees are being asked not just to use technology, but to guide, question and manage it effectively. In many cases, this means workers developing a level of oversight and decision-making capability, even if they do not hold formal management roles.

In response to this shift, ACT’s sister company ALS collaborated with the British Computer Society in 2025 to deliver the Essentials Certificate in Artificial Intelligence. Designed to build understanding of AI as a business tool, the qualification also explores ethics, governance and risk. Despite launching late in the year, uptake has already shown strong demand from organisations looking to introduce consistent, organisation-wide AI literacy.

Looking ahead, 2026 is likely to see more leaders prioritising structured digital training that equips people to work confidently alongside AI. The focus will not simply be on deploying new tools, but on ensuring the workforce has the skills, judgement and awareness needed to use them well.

You can explore ACT’s suite of digital qualifications here.

Development as a driver of retention

The challenge of retaining skilled employees is not new. However, it remains a defining issue for many organisations, even in a labour market where recruitment conditions have shifted.

Throughout 2025, discussion around employee turnover frequently centred on pay, flexibility and benefits. While these factors still matter, research increasingly shows that career progression and skills development play a central role in long-term engagement, particularly for younger workers.

A report by LHH found that 59% of Gen Z workers prioritise career progression and skills development when considering a role – a higher proportion than any other age group. This reflects a broader shift in expectations. Employees want to understand how their role will evolve and what support is available to help them grow.

In 2026, more organisations are likely to look beyond short-term incentives and instead focus on clear development pathways. Work-based learning plays a big part in this, allowing individuals to build relevant skills while remaining productive in their roles.

For employers, investing in structured development supports retention, improves performance and helps address skills gaps internally. For employees, it provides tangible progression and confidence that their employer is invested in their future.

Net Zero moves from awareness to action

Towards the end of 2025, Wales’ third carbon budget was announced, which targets an average 58% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. These ambitions underline the scale of change required and the role Welsh businesses will need to play in achieving them. 

For organisations, reaching net zero is not just about compliance. It’s a shift in how they operate, plan and invest for the future. At the same time, it presents an opportunity for growth, particularly for SMEs looking to engage in emerging supply chains linked to renewable energy, the circular economy and green infrastructure. 

As we move into 2026, businesses can no longer treat net zero as a distant objective. Increasingly, leaders are recognising that sustainability goals and workforce development go hand in hand. Delivering meaningful change depends on having people with the right skills, knowledge and confidence to implement new approaches in practice. 

At the heart of this is training and green skills. Training is key to educating us on the reasons why we are in a climate crisis, our legal obligations, and tools and techniques on how we can slow the impacts of our business activities. 

If 2025 was the year Wales’ Net Zero plans came onto our radar, 2026 is the year we will be developing our strategies to make these plans work for business. 

Rethinking apprenticeships as an organisational tool

In the summer of 2025, as exam results were released, figures showed that around 32% of Welsh 18-year-olds had applied to university, compared with 41% across the UK. This highlighted the increasingly diverse routes young people are considering as they plan their futures.

Alongside higher education, apprenticeships continue to play an important role in supporting individuals to gain practical skills while building meaningful careers. At the same time, both the Welsh and UK Governments have identified apprenticeships as a key mechanism for tackling skills shortages and supporting economic growth.

Despite this, misconceptions about apprenticeships still exist. In reality, they can be used at all stages of a career, from entry-level roles to leadership development, and across a wide range of sectors.

As businesses look ahead to 2026, many are beginning to view apprenticeships as a strategic workforce planning tool rather than a standalone training option. When aligned with business needs, they offer a cost-effective way to develop talent, improve productivity and bring fresh thinking into organisations.

For businesses in Wales looking to develop or refine their work-based learning approach, ACT offers fully-funded training across a wide range of qualifications, for both individuals and employers looking to build the skills they need for the future.