Technology refresh cycles constantly shape the integration landscape. As organizations finalize their technology upgrades, a clear transition is emerging. Dan Smith, executive vice president of Almo Pro AV, shared his insights with Dan Ferrisi, group director of content + editorial, industrial + tech, Emerald, on this evolving market at the E4 Experience event in DC Metro. From the rapid adoption of artificial intelligence in collaboration spaces to the explosive growth of enterprise drones, he remarks that the industry is changing quickly.
Here is what you need to know about shifting technology budgets, AI-enabled environments and the specialized hardware driving the future of pro AV.
Will AV Spending Outpace IT Refresh Cycles?
According to Smith, enterprise spending has heavily favored traditional IT infrastructure for the past few years. Companies prioritized massive notebook and server deployments to support remote workforces and AI enabled functions. However, as these IT refresh cycles become more mature, budget allocations are expected to start shifting back toward AV.
While IT spending will always remain a priority, the proportion of funds dedicated to audiovisual upgrades is growing as fueled by hardware, software and AI functionality expansion. This transition presents a massive opportunity for integrators positioned to deliver modern collaboration solutions.
“If we look at 2024 [numbers], 2025 dropped a little, [but] I think it’s going to come back up in 2026 so it’s not like they’re going to stop spending,” Smith explains. “I think that that ratio of IT to AV, [along with] the technology budget will start to modify again in 2026 as we have seen evidenced by January through March.”
By tracking sales data across its extensive partner network, Smith notes that this steady shift in budget priority will drive organic growth across the AV sector. As companies complete their IT overhauls, their focus naturally turns toward maximizing the utility of their physical office spaces.
How Will AI-Driven Meeting Rooms Improve Collaboration?
Smith states that today’s conference room requires more than just a display and a basic camera; rather, it requires intelligent, outcome-based solutions. He then highlights how AI-infused meeting rooms — specifically those leveraging Microsoft Teams Rooms (MTR) — are revolutionizing corporate collaboration. These smart spaces use advanced audio and video hardware to identify speakers, generate real-time transcripts and summarize action items or meeting recaps. This, in turn, allows organizations to save time and improve productivity. However, he notes that experiencing these environments firsthand is critical for understanding their value.
According to Smith, key features of AI-enabled meeting spaces include:
- Real-time speaker identification and dictation
- Automated generation of meeting summaries
- Action item tracking to ensure clear post-meeting follow-up
- Copilot integration to quickly refine and organize dictated notes
“When you walk into a room that’s got [a setup of] multiple cameras and microphones, it knows the people in the room,” Smith adds. “It’s taking dictation, action items [and] summaries [so] you can move [efficiently].”
What Hardware is Driving Enterprise Growth in AV?
Smith proclaims that while meeting room technology remains a core focus for pro AV integrators, adjacent hardware categories are seeing a rise in demand as well. For instance, extended reality (XR) headsets and enterprise drones are rapidly moving from niche products to essential business tools. Enterprise drones, in particular, represent an explosive market, he says.
According to Smith, integrators are deploying these devices for public safety, precise surveying for land, mining, construction, infrastructure and agricultural analysis. Equipped with specialized payload sensors, these drones can execute autonomous missions and capture high-resolution data. “The drones are unequivocally exploding, because existing applications are now moving to drones for execution,” he emphasizes.
Noting the accuracy of such enterprise solutions, Smith adds, “It [can] fly the mission, collect the data within one centimeter accuracy and land back in the same spot, all autonomously.” This is a material change in the data collection process for existing needs, driven by technology evolution tied to drones and drone-based sensors. The transition to drone-based data collection is a large leap forward in data collection capabilities, speed, personnel risk mitigation and cost efficiencies.
Ways Integrators Can Navigate Market Disruptions
The AV industry still faces macroeconomic challenges, including changing tariff regimes, rising memory hardware costs and supply-chain fluctuations.
From Smith’s perspective, navigating these obstacles requires a reliable distribution partner with deep market visibility and a broad AV portfolio. He then underscores how Almo Pro AV leverages its substantial market share to predict trends and guide integrators through turbulent periods. More importantly, the company relies on human expertise to support its partners.
“We have over 200 people talking to [customers] every day about AV,” Smith emphasizes. “When you pick [up the phone] and call us, you actually get to talk to a person [who has] experience in the category.” He thus encourages integrators to partner with Almo Pro AV and embrace AI-enabled solutions to better position their integration business for long-term success.
To learn more about the latest technology trends and connect with industry experts, visit the Almo Pro AV website.
