Worldwide spending on artificial intelligence is forecast to reach $2.59 trillion in 2026, up 47% from $1.76 trillion in 2025, according to Gartner. The forecast places AI infrastructure as the largest category of spending, with Gartner projecting it will account for more than 45% of the market in the coming years. The category includes AI-optimised infrastructure as a service, AI-optimised servers, AI network fabric, AI processing semiconductors and devices.
John-David Lovelock, distinguished vice president analyst at Gartner, said demand for capacity is expected to drive infrastructure spending. He said spending on AI-optimised servers is projected to triple over the next five years, becoming the largest infrastructure subsegment as cloud services providers expand capacity for workloads created by generative AI models and agentic workflows.
Gartner said enterprises are expected to increase their use of generative AI models embedded in existing software applications, as well as AI agents used across multiple workflows. The firm said model consumption is likely to rise as AI is integrated into multistep processes and broader suites of tools. Gartner now expects spending on AI models to grow 110% in 2026, reaching $32.6 billion, up from $15.5 billion in 2025.
AI services are forecast to rise from $436.4 billion in 2025 to $585.5 billion in 2026 and $759.4 billion in 2027. AI software spending is expected to increase from $282.9 billion in 2025 to $453.2 billion in 2026 and $638.4 billion in 2027. AI infrastructure spending is projected to grow from $975.6 billion in 2025 to $1.43 trillion in 2026 and $1.89 trillion in 2027.
Gartner’s forecast also shows AI cybersecurity spending increasing from $25.9 billion in 2025 to $51.3 billion in 2026 and $86.0 billion in 2027. Spending on AI data is forecast to rise from $826 million in 2025 to $3.1 billion in 2026 and $6.5 billion in 2027.
“Up to this point, AI spending has primarily been driven by technology companies and hyperscalers,” said Lovelock. “Businesses have yet to really flex their spending potential. That is coming and 2026 will be the inflection year. Currently, organisations show limited appetite for using AI to drive disruptive enterprise change. Instead, they favour tactical AI initiatives with incremental improvements in efficiency and productivity.
“For this reason, CIOs face challenges in proving the value from AI investments and demonstrate tangible business outcomes,” said Lovelock. “Aligning AI initiatives with strategic business objectives is the essential step for success. This incremental approach persists despite AI hype and valuations that reflect aspirations to transform the broader economy.”
