Worldwide spending on artificial intelligence is projected to rise 47% year over year to $2.59 trillion in 2026, according to research and advisory firm Gartner, as cloud providers and technology vendors continue pouring money into AI infrastructure while enterprises gradually broaden adoption.
The forecast highlights how spending remains heavily concentrated among vendors and hyperscalers building capacity for generative AI models and agentic workflows, even as businesses continue taking a more cautious approach focused on productivity gains rather than broad organizational transformation.
“Through the next several years, the need for capacity will make AI infrastructure … the largest segment of the market,” John-David Lovelock, distinguished vice president analyst at Gartner, said in a statement.
Infrastructure Dominates AI Investment
Gartner said AI infrastructure — including AI-optimized cloud infrastructure, servers, networking equipment, semiconductors and devices — will account for more than 45% of total AI spending over the next several years.
The research firm expects spending on AI-optimized servers to triple over the next five years, making it the largest AI infrastructure subsegment as cloud service providers expand computing capacity to support increasingly complex generative AI applications.
That surge reflects mounting demand for the computing power needed to run large language models and emerging AI agents capable of handling multistep business processes.
AI infrastructure spending is forecast to reach $1.43 trillion in 2026, up from about $976 billion in 2025, before climbing further to nearly $1.89 trillion in 2027.
Worldwide AI Spending by Market, 2025-2027 (Millions of U.S. dollars)
| Market | 2025 | 2026 | 2027 |
|---|---|---|---|
| AI Services | 436,351 | 585,527 | 759,418 |
| AI Cybersecurity | 25,920 | 51,347 | 85,997 |
| AI Software | 282,897 | 453,209 | 638,431 |
| AI Models | 15,494 | 32,604 | 59,161 |
| AI Platforms for Data Science and Machine Learning | 21,292 | 29,928 | 42,639 |
| AI Application Development Platforms | 6,587 | 8,416 | 10,922 |
| AI Data | 826 | 3,126 | 6,480 |
| AI Infrastructure | 975,581 | 1,431,509 | 1,890,310 |
| Total AI Spending | 1,764,947 | 2,595,667 | 3,493,358 |
Table source Gartner.
Enterprises Expand AI Adoption Carefully
While technology companies and hyperscalers continue driving most spending growth, Gartner said enterprises are expected to accelerate investments beginning in 2026 as organizations increasingly integrate AI capabilities into existing software and workflows.
Businesses are expected to expand the use of embedded generative AI models and AI agents across multiple functions as they seek efficiency improvements and automation opportunities.
Gartner increased its short-term outlook for AI models to 110% growth in 2026, adding an estimated $6 billion in projected spending for the year.
Still, Lovelock said most organizations remain cautious about using AI for sweeping business transformation, instead favoring tactical deployments designed to improve efficiency and productivity incrementally.
“For this reason, CIOs face challenges in proving the value from AI investments and demonstrating tangible business outcomes,” Lovelock said.
The findings underscore a broader tension across the corporate technology sector, where enthusiasm surrounding AI has fueled soaring investment and market valuations, even as many companies continue searching for measurable returns on spending.
Software, Cybersecurity Spending Rise
Beyond infrastructure, Gartner expects strong growth across software, cybersecurity and services categories tied to AI deployment.
AI software spending is forecast to increase to $453.2 billion in 2026 from $282.9 billion in 2025, while spending on AI services is projected to rise to $585.5 billion from $436.4 billion over the same period.
AI cybersecurity is also expected to nearly double in 2026, reaching $51.3 billion as organizations invest more heavily in protecting AI-enabled systems and data environments.
