Global AI expenditure is projected to reach $2.7 trillion by 2026, representing a year-on-year rise of 49.5%, according to research and advisory firm Gartner, whose Distinguished VP Analyst John-David Lovelock noted that demand for AI infrastructure — spanning optimised cloud services, specialised servers, networking components, semiconductors, and related devices — remains robust despite upward pressure on memory-related costs, adding that the construction of AI data centre capacity constitutes the most expansive infrastructure undertaking in human history. Spending on AI-optimised servers by hyperscalers and service providers is forecast to remain the dominant category of infrastructure investment, while software vendors across multiple segments are moving to integrate agentic AI into their existing platforms to stay competitive and guard against the rise of cross-functional agent solutions. As generative AI adoption encounters a period of tempered expectations, many organisations are turning to lighter-weight AI tools embedded within their existing software platforms to streamline processes, automate routine tasks, strengthen customer interactions, and support better-informed business decisions. Projected global expenditure on AI services is forecast to reach $434 billion in 2025, climbing to $576 billion in 2026 and $746 billion in 2027. Projected spending on AI cybersecurity is forecast at $25,920 million in 2025, rising to $51,347 million in 2026 and reaching $85,997 million by 2027. Projected revenue for AI software stands at $288,168M in 2025, rising to $461,637M in 2026 and reaching $656,353M by 2027. Projected revenue for AI Agents and Assistants stands at $16,481M in 2025, rising to $29,219M in 2026 and reaching $65,472M by 2027. Projected revenue from generative AI models stands at $13,021M in 2025, rising to $28,266M in 2026 and reaching $51,620M by 2027. Projected revenue for AI platforms serving data science and machine learning is forecast at $19,405M in 2025, rising to $26,445M in 2026 and reaching $35,552M by 2027. Projected revenue for AI Application Development Platforms stands at $6,885M in 2025, rising to $9,541M in 2026 and reaching $12,478M by 2027. Projected AI data revenue stands at $826 million in 2025, rising to $3,126 million in 2026 and reaching $6,480 million by 2027. Projected spending on AI infrastructure is estimated at $981,920M in 2025, rising to $1,484,397M in 2026 and reaching $1,977,685M by 2027. Projected global AI expenditure stands at $1,786,671M in 2025, rising to $2,670,460M in 2026 and reaching $3,637,292M by 2027. Lovelock noted that organisations are increasingly engaging service providers for narrower, supplementary initiatives aimed at leveraging AI functionality within existing software platforms, rather than for broader business transformation efforts, and that concerns around vendor dependency, data governance, and cost escalation have not deterred buyers from adopting these proprietary tools. Projected figures place the combined value of transformation-related and indirect AI services work at $1.2 trillion by 2030, while the near-term growth outlook for AI application development platforms has been revised upward from 28% in 2026 to 39% in the latest forecast period, reflecting demand from enterprises, software vendors, and services firms building custom AI tools suited to their own operational requirements. Organisations are turning to their vendors for support in controlling expenditure and integrating consumption-monitoring tools into day-to-day processes to measure outcomes. Demand among AI providers to deliver more affordable, enterprise-ready solutions is carving out a narrow yet expanding niche for domain-specific language models (DSLMs). The projected expansion rate for generative AI models in 2026 has been revised upward, moving from 110% in the prior outlook to 117% in the latest figures. Gartner's updated outlook repositions cross-functional agents and assistants outside the AI software category while incorporating consumer-facing agents and assistants into its AI expenditure projections, reflecting the growing prominence of this technology segment.
