Gartner sees AI spending hit USD $2.59 trillion in 2026
Thu, 21st May 2026 (Today)
Gartner forecasts global artificial intelligence spending will reach USD $2.59 trillion in 2026, a 47% year-on-year increase.
Most of that spending is expected to come from vendors and hyperscalers rather than enterprise buyers, with AI infrastructure accounting for more than 45% of the market. Demand for capacity is expected to keep infrastructure as the largest segment for the next several years.
Gartner's breakdown shows AI infrastructure spending rising from USD $975.6 billion in 2025 to USD $1.43 trillion in 2026, before climbing to USD $1.89 trillion in 2027. Total AI spending is forecast to reach USD $3.49 trillion in 2027.
Within infrastructure, AI-optimised servers are expected to become the largest subsegment. Spending on those servers will triple over the next five years as cloud services providers add capacity for workloads tied to generative AI models and agentic workflows.
Other parts of the market are also forecast to grow sharply. AI services are projected to increase from USD $436.4 billion in 2025 to USD $585.5 billion in 2026, while AI software is expected to rise from USD $282.9 billion to USD $453.2 billion over the same period.
AI cybersecurity spending is forecast to almost double to USD $51.3 billion in 2026 from USD $25.9 billion a year earlier. Spending on AI models is also expected to jump from USD $15.5 billion in 2025 to USD $32.6 billion in 2026.
Enterprise demand
Enterprises are expanding their use of generative AI models embedded in existing software and adopting new AI agents across multiple workflows. Gartner expects model consumption to rise through multistep processes and broader software integration as companies seek value from more automated tasks.
That shift prompted Gartner to raise its short-term outlook for AI models, forecasting 110% growth in 2026 and adding USD $6 billion to expected spending this year. Even so, enterprise demand has yet to reach its full potential.
"Through the next several years, the need for capacity will make AI infrastructure, including AI-optimised IaaS, AI-optimised servers, AI network fabric, AI processing semiconductors and devices, the largest segment of the market, accounting for over 45% of spending, which will be driven by vendors," said John-David Lovelock, Distinguished VP Analyst, Gartner.
"Within this segment, spending on AI-optimised servers will triple over the next five years to become the largest subsegment, as cloud services providers expand capacity in anticipation of the workloads created by GenAI models and agentic workflows," Lovelock said.
Inflection year
Gartner described 2026 as a turning point for enterprise AI spending, even as current buying patterns remain cautious. Organisations are still favouring targeted projects aimed at incremental gains in efficiency and productivity rather than broader changes to operating models.
That restrained approach leaves many technology leaders under pressure to justify investment. CIOs are finding it difficult to prove the value of AI programmes and show measurable business results.
"Up to this point, AI spending has primarily been driven by technology companies and hyperscalers," Lovelock said. "Enterprises 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," he said. "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."