AI Trends to Watch: Agents, Multimodal & On-Device AI

AI Trends to Watch in 2027

2026 was the year AI tools stopped only answering questions and started doing work on your computer. It was also a year of shutdowns, new rules and cheaper models. If you run a small business or simply use AI tools every day, these are the six trends worth your attention heading into 2027:

Agents that use your computer move from previews to everyday products.
AI moves into the browser you already use, rather than replacing it.
Open-weight models stay close behind the best closed models.
AI video consolidates while world models arrive.
On-device AI gets more capable, with less data leaving your phone or laptop.
EU AI Act deadlines shift, but transparency rules already apply.

Each section below covers what the trend is, why it matters to you, and a few example tools. Every fact is linked to a source in the list at the end.

1. Agents that use your computer

What it is. A computer-use agent is an AI tool that can open files, click through apps and complete multi-step tasks, instead of just writing text for you to copy. In 2026 every major AI company shipped one. According to TechTarget, Anthropic's Claude Cowork went from a research preview in January 2026 to commercial availability in April, and works on local files in folders you grant it. Microsoft released Copilot Cowork in June, running in a sandboxed cloud environment inside a Microsoft 365 tenant. OpenAI launched ChatGPT Work in July 2026.

Why it matters. These tools can take over repetitive desk work: sorting files, filling forms, compiling reports. But most small businesses are still at the start. A Bluehost survey of 350 US small business owners, fielded in May 2026, found that 79% were aware of AI agents but only 16% had deployed one. The same TechTarget article notes that one agent task can use 50 to 100 times as many tokens as a chat message, so costs can climb fast, and it advises that an agent should generally ask before acting.

Example tools: Claude, ChatGPT, Microsoft Copilot.

2. AI moves into the browser you already use

What it is. In 2025, several companies launched separate AI browsers. In 2026 the market shifted toward adding agents to existing browsers. OpenAI shut down its standalone ChatGPT Atlas browser on 9 August 2026, less than a year after its October 2025 launch, and had earlier announced plans to fold Atlas, the ChatGPT desktop app and Codex into one desktop application. Meanwhile, Google began rolling out auto browse in Chrome in January 2026, letting Gemini fill forms and complete tasks on websites for paying AI Pro and Ultra subscribers in the US. Perplexity's Comet browser reached iPhone in March 2026.

Why it matters. You probably do not need to switch browsers to get AI help. The bigger question is security: an agent that can log in and click on your behalf can also be tricked by a malicious page. Keep agents away from banking and payment pages unless you are watching each step.

Example tools: Google Gemini, Perplexity.

3. Open-weight models stay close behind

What it is. Open-weight models are AI models whose files are published, so anyone can run them on their own hardware or pick from many hosting providers. OpenRouter wrote in June 2026 that open-weight models have kept a consistent gap of 3 to 6 months behind closed frontier models for over 18 months. The UK AI Security Institute reached a similar conclusion in July 2026: on cyber tasks, recent open-weight models lag the best closed models by 4 to 7 months, narrower than the 6 to 10 month gap it measured through most of 2025. Models named by OpenRouter as the ones that matter include DeepSeek V4 Flash, GLM 5.2 and MiniMax M3.

Why it matters. Last year's top performance is now available at lower prices and with more control over where your data goes. For many everyday jobs, such as summaries, drafts and classification, a model a few months behind the frontier is good enough. The trade-off is that you or your provider take on more responsibility for setup and safety.

Example tools: DeepSeek.

4. AI video consolidates while world models arrive

What it is. The AI video market changed hands in 2026. OpenAI closed the Sora web and app experiences on 26 April 2026 and the Sora API on 24 September 2026, saying it was redirecting computing resources to coding tools and business customers. Others kept shipping: Kuaishou launched Kling 4.0 on 15 October 2026, with clips of up to 30 seconds in a single generation. At the same time, world models appeared: AI that generates interactive scenes you can move through and change. Google DeepMind's Genie 4, announced in late October 2026 as a limited research preview, adds generated sound and talking characters, and Google says all output carries its SynthID watermark.

Why it matters. Short marketing clips and product videos are now practical for small teams. But services can disappear quickly, as Sora showed. Keep copies of everything you generate and avoid building a workflow that depends on a single video tool.

Example tools: Kling 4.0, Runway, Gemini Omni.

5. On-device AI gets more capable

What it is. More AI now runs directly on your phone or laptop instead of in a data center. In June 2026 Apple introduced the third generation of its Foundation Models: two on-device models, including AFM 3 Core Advanced, a 20-billion-parameter sparse model that activates only 1 to 4 billion parameters at a time. Apple says the family was built in collaboration with Google and that the models run only on-device and on its Private Cloud Compute servers.

Why it matters. On-device AI is faster for small tasks and keeps more personal data on the device. For a small business, that can make it easier to use AI on customer notes or internal documents. The limit is hardware: older phones and laptops often cannot run these models and fall back to the cloud.

Example tools: Built into recent Apple and Android devices rather than sold as separate apps.

6. EU AI Act deadlines shift, but transparency rules apply now

What it is. The EU changed the AI Act's timeline in 2026. The Digital Omnibus on AI, Regulation (EU) 2026/1744, was published in the Official Journal on 24 July 2026 and entered into force on 27 July 2026. It moved obligations for stand-alone high-risk AI systems (Annex III, such as hiring or credit scoring) from 2 August 2026 to 2 December 2027, and for AI built into regulated products (Annex I) to 2 August 2028. The Article 50 transparency rules were not delayed and apply from 2 August 2026. Generative AI systems already on the market before that date have until 2 December 2026 to add machine-readable marking to their output.

Why it matters. If you sell to EU customers, you have more time for high-risk compliance, but disclosure rules already apply. Expect AI tools to label generated content and to tell people when they are talking to AI. The Omnibus also softened the AI literacy duty: companies must support AI literacy among staff rather than guarantee a specific level.

Example tools: Not a tool trend. Check the transparency and labelling settings in the tools you already use.

What to do about it

Start one small agent pilot. Pick a repetitive task, keep approval prompts switched on and track the cost per task.
Don't switch browsers for AI alone. Try the agent features in the browser you already have, and keep them off sensitive accounts.
Compare open-weight options on price. For routine work, a cheaper open-weight model may do the job.
Back up generated media. Download anything you make with AI video or image tools.
Check your EU exposure. If you have EU customers, label AI-generated content now and plan for December 2027 if you use AI in hiring, credit or similar decisions.
Use on-device features first for private data when your hardware supports them.

FAQ

What is the biggest AI trend for 2027?

Agents that complete tasks on your computer. Every major AI company launched one in 2026, but most small businesses have not deployed one yet.

Are AI browsers worth switching to?

For most people, no. OpenAI shut down its Atlas browser in August 2026, and Google added agent features to Chrome instead. Try what your current browser offers first.

Are open-weight models as good as ChatGPT or Claude?

Not quite. Independent estimates put them 3 to 7 months behind the best closed models, which is close enough for many everyday tasks.

When do the EU AI Act high-risk rules apply?

After the Digital Omnibus, stand-alone high-risk systems must comply from 2 December 2027 and AI in regulated products from 2 August 2028. Transparency rules have applied since 2 August 2026.

Sources

TechTarget, Agents on the desktop: Claude Cowork and its equivalents (22 October 2026): https://www.techtarget.com/ai/tip/Agents-on-the-desktop-Claude-Cowork-and-its-equivalents
Bluehost, State of Small Business AI Confidence 2026 (survey fielded May 2026): https://www.bluehost.com/state-of-small-business-ai-confidence
Wikipedia, ChatGPT Atlas (citing CNBC, WSJ, TechRepublic, 2026): https://en.wikipedia.org/wiki/ChatGPT_Atlas
TechRadar, OpenAI shuts down its Atlas browser after not even a year (2026): https://www.techradar.com/pro/openai-shuts-down-its-atlas-browser-after-not-even-a-year
SiliconANGLE, Gemini in Chrome auto browse (28 January 2026): https://siliconangle.com/2026/01/28/google-lets-browser-take-control-major-updates-gemini-chrome/
Storyboard18, Perplexity launches Comet browser on iPhone (March 2026): https://storyboard18.com/digital/perplexity-ai-launches-comet-browser-on-iphone-with-ai-assistant-92658.html
OpenRouter, The Open Weight Models that Matter: June 2026 (27 June 2026): https://openrouter.ai/blog/insights/the-open-weight-models-that-matter-june-2026/
UK AI Security Institute, How far behind the frontier are leading open weight models on cyber? (17 July 2026): https://www.aisi.gov.uk/blog/how-far-behind-the-frontier-are-leading-open-weight-models-on-cyber
The Decoder, Sora two-stage shutdown (28 March 2026): https://the-decoder.com/openai-sets-two-stage-sora-shutdown-with-app-closing-april-2026-and-api-following-in-september/
OpenAI Help Center, What to know about the Sora discontinuation (2026): https://help.openai.com/en/articles/20001152-what-to-know-about-the-sora-discontinuation
Bernama, Kling AI Officially Launches Next-Generation Kling 4.0 (October 2026): https://bernama.com/en/press/news.php?id=2622471
Gizmodo, Genie 4 world model (27 October 2026): https://gizmodo.com/googles-new-ai-world-model-can-generate-human-voices-not-just-video-2000831335
AI Weekly, Genie and Street View; Gemini Omni (21 May 2026): https://aiweekly.co/newsletters/ai-world-models/google-grounds-its-genie-world-model-in-20-years-of-street
Apple Machine Learning Research, Introducing the Third Generation of Apple's Foundation Models (8 June 2026): https://machinelearning.apple.com/research/introducing-third-generation-of-apple-foundation-models
AIActo, Digital Omnibus Adopted: AI Act High-Risk Delayed to 2027 (updated 1 October 2026): https://www.aiacto.eu/en/blog/digital-omnibus-ai-act-report-2027
Gibson Dunn, EU AI Act Omnibus Agreement: Postponed High-Risk Deadlines and Other Key Changes (2026): https://www.gibsondunn.com/eu-ai-act-omnibus-agreement-postponed-high-risk-deadlines-and-other-key-changes/