January 2026 feels like a time to make sure we’re all clear on the language we’re using around AI. AI is no longer experimental, subsidised, or safely abstract. We have started to embed it in real workflows, make real decisions about use cases, and allocate real budgets. And yet, most People Leaders still use Predictive AI and Generative AI as if they mean the same thing. They don’t. That confusion was survivable in 2025.It becomes risky in 2026. Because Predictive and Gen

Most teams still treat prompting as “ typing with better outcomes .”That was harmless when GenAI was a novelty.It becomes very expensive in 2026. Because prompting isn’t a writing habit. It ’s a capability .And in 2026, capability becomes a cost driver. The shift isn’t philosophical.It ’s economic, and it’s already moving faster than most leadership teams realise. Economic Shift The first wave of AI adoption was subsidised. Flat of fixed subscriptions. Unlimited usage ( kind