$2.59 Trillion in AI Spending Dominated by Vendors and Hyperscalers, with Enterprises Yet to Flex Spending Potential.
STAMFORD, Conn., May 19, 2026 — Worldwide spending on AI is forecast to total $2.59 trillion in 2026, a 47% increase year-over-year, according to Gartner, Inc. a business and technology insights company.
“Through the next several years, the need for capacity will make AI infrastructure, including AI-optimized IaaS, AI-optimized 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 at Gartner. “Within this segment, spending on AI-optimized 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.”
Enterprises will expand their use of both the GenAI models embedded in existing software applications and the new AI agents within multiple workflows. Model consumption will increase through multistep processes and integration into broad suites of tools as enterprises recognize the potential value of agentic automation. This dynamic means that the short-term outlook for AI models has been increased to 110% growth in 2026, adding $6 billion in spending for this year (see Table 1).
Table 1: 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 |
Source: Gartner (May 2026)
“Up to this point, AI spending has primarily been driven by technology companies and hyperscalers,” said Lovelock. “Enterprises have yet to really flex their spending potential. That is coming and 2026 will be the inflection year. Currently, organizations show limited appetite for using AI to drive disruptive enterprise change. Instead, they favor 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.”
Gartner is the World Authority on AI
Gartner is the indispensable partner to C-Level executives and technology providers as they implement AI strategies to achieve their mission-critical priorities. The independence and objectivity of Gartner insights provide clients with the confidence to make informed decisions and unlock the full potential of AI. Clients across the C-Level are using Gartner’s proprietary AskGartner AI tool to determine how to leverage AI in their business. With more than 2,500 business and technology experts, 6,000 written insights, as well as more than 4,000 AI use cases and case studies, Gartner is the world authority on AI. More information can be found here.
Gartner IT Symposium/Xpo
The outlook on AIs will be presented during Gartner IT Symposium/Xpo, the world’s most important conference for CIOs and other IT executives. Gartner analysts and attendees will explore how to become agents of change in their organizations and harness AI for successful digital transformation. Follow news and updates from the conferences on X and LinkedIn using #GartnerSYM, and on the Gartner Newsroom.
Upcoming dates and locations for Gartner IT Symposium/Xpo include:
September 14-16, 2026 | Gold Coast, Australia
October 19-22, 2026 | Orlando, FL
November 4-6, 2026 | Yokohama, Japan
November 9-12, 2026 | Barcelona, Spain
November 16-18, 2026 | Kochi, India
About Gartner for High Tech Leaders and Providers
Gartner for High Tech Leaders and Providers equips tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organizations of tomorrow.
About Gartner
Gartner (NYSE: IT) delivers actionable, objective business and technology insights that drive smarter decisions and stronger performance on an organization’s mission-critical priorities.
