A widely circulated industry report claims 78% of dental practices plan to increase technology spending in 2026, pointing to practice management software, AI-assisted diagnostics, and patient communication tools as the top priorities (Dentalstack, citing ADA data). The ADA's own Q4 2025 Health Policy Institute report tells a more nuanced story — about 41% of owner dentists actually invested in new software during 2025, and a meaningful share plan to do so again in 2026 — but either way the signal is the same: the practices around you are spending on tech, and the gap between early adopters and everyone else is widening.

If you run a solo or small practice and feel like you're watching from the sidelines, you're not behind yet — but the window is closing faster than it did a year ago.

What Happened

Two data points frame this moment.

The Dentalstack 2026 trends report — citing an ADA technology survey — highlights 78% of practices planning to grow their tech budget, with three categories leading the spend: cloud-based practice management systems, AI for diagnostics and insurance verification, and unified patient communication platforms. We weren't able to locate the raw 78% figure inside a primary ADA document, so treat the exact number as a directional signal rather than a hard stat.

The ADA Health Policy Institute's Q4 2025 report is the primary source that's easier to verify. It surveyed 705 owner dentists and found roughly 41% invested in new software during 2025, with another 17% planning to invest in 2026. DSOs are moving faster than private practices on technology, using automation to fight the same labor and margin pressures everyone else is feeling.

The categories getting the most attention across both reports:

  • Practice management software — especially cloud-based systems that consolidate scheduling, billing, and communication in one place
  • AI-assisted diagnostics — radiograph review, caries detection, and second-opinion tools that supplement clinical judgment
  • Patient communication — unified platforms replacing the 3-5 separate tools most practices still cobble together

This tracks with dentists on Dentaltown and the Dental Boardroom podcast: software spend is now the easier lever to pull compared to restructuring insurance contracts or hiring staff — and the ROI math is starting to back that feeling up.

Why It Matters for Your Practice

Here's the uncomfortable part for solo and small practices: the DSOs are pulling ahead on technology, and they're doing it with intent. They're using AI voice agents for the front desk, AI-driven insurance verification, and integrated analytics to push overhead down into the 50-55% range while most private practices sit at 60-65%.

That overhead gap compounds. A DSO that automates insurance verification saves six hours of front-desk time per week per location. A solo practice that doesn't automate pays that time in payroll — or worse, in missed follow-ups and unverified benefits.

The good news: the tools that used to be enterprise-only are now accessible at solo-practice price points. A cloud PMS with built-in patient communication costs less than most practices spend on their current stack of point solutions. AI diagnostic tools have dropped to per-provider pricing that a two-chair office can absorb. The playing field is more level than it has been in a decade — but only for practices willing to make the moves.

TMR Take: Don't chase the 78% headline. Chase the underlying pattern. The practices upping their tech spend in 2026 aren't buying shiny objects — they're consolidating point solutions, automating front-desk work, and putting AI where it reduces documentation burden. If your 2026 tech plan is "wait and see," you're making a bet that labor costs will fall and insurance reimbursements will rise. Neither is happening.

What to Do Now

Four concrete moves, in order of ROI:

1. Audit your current stack before you add anything. Most practices are paying for 3-5 tools that overlap — a standalone reminder system, a separate review platform, a form tool, a recall system. Before you add AI anywhere, consolidate. Our ROI evaluation framework walks through how to price the real cost of your current setup.

2. Fix the highest-leverage workflow first. For most practices, that's insurance verification or the front desk. AI-powered verification tools pull benefits automatically and flag discrepancies before the appointment — giving back 6+ hours a week of staff time. Start there, not with a radiograph AI that your clinical team isn't ready to trust yet.

3. Upgrade patient communication if you haven't in 3+ years. Patients in 2026 expect digital-first communication by default. If you're still running separate tools for reminders, recalls, reviews, and forms, you're paying for integration work your PMS should be doing. See our guide to the best patient communication software for options that bundle cleanly.

4. Pilot AI in one narrow use case. Don't try to deploy AI everywhere at once — that's how adoption fails. Pick one workflow (automated insurance verification, radiograph second-opinion, or ambient clinical notes) and measure results for 60 days before expanding. Our overview of AI in dental software today lays out what's actually shipping and what's still hype, and this primer on AI diagnostics covers the clinical-side tools.

The Bottom Line

Whether the real number is 78% or closer to 41%, the direction is settled. Practices are spending on technology in 2026 because the alternative — flat reimbursements and rising labor costs without any efficiency gain — isn't sustainable. The practices that win the next 24 months won't have the biggest tech budgets. They'll pick the right two or three tools, implement them well, and use the time savings to focus on patient care.

If you're not sure where to start, take our practice software fit quiz — it points you to tools that match your practice size, specialty, and budget.