Global spending on artificial intelligence is projected to reach nearly $1.5 trillion in 2025, according to a forecast published by technology research and advisory firm Gartner. The estimate reflects continued demand for AI capabilities across a range of sectors, including infrastructure, hardware, and consumer electronics.
Gartner attributes the projected increase in spending to ongoing investments in AI infrastructure, with large cloud service providers continuing to expand their data centre capacity using AI-optimised hardware and GPUs. The firm also notes a broader shift in the investment landscape, with funding activity extending beyond established US technology companies to include firms in China and emerging AI cloud providers. Venture capital investment in AI developers is also contributing to the growth.
For 2026, Gartner anticipates that total global spending on AI technologies will exceed $2 trillion. This outlook is based in part on the wider integration of AI capabilities into mainstream products, including smartphones, personal computers, and infrastructure systems.
Gartner’s forecast breaks down AI-related spending across various categories. Spending on AI application software is projected to rise from $172 billion in 2025 to nearly $270 billion in 2026. AI services are expected to increase to approximately $325 billion over the same period. Other areas such as AI-optimised servers, AI processing semiconductors, and generative AI smartphones are also forecast to see increased investment.
According to the data, generative AI models are projected to grow from $14.2 billion in 2025 to $25.8 billion in 2026, while AI-optimised infrastructure-as-a-service (IaaS) is expected to more than double. AI PCs and generative AI-enabled smartphones are also anticipated to contribute to overall spending growth.
Gartner’s full forecast includes segment-level data covering 2024 through 2026, with total AI spending estimated at $987.9 billion in 2024, $1.48 trillion in 2025, and $2.02 trillion in 2026.
