Global AI Spending To Hit $2.5 Trillion In 2026: Gartner Report

Global spending on artificial intelligence is projected to reach $2.52 trillion in 2026, marking a 44% year-on-year increase, as enterprises prioritise infrastructure, predictable returns, and real-world deployments over speculative AI bets, according to research firm Gartner. 

The surge in AI investment is being driven largely by spending on AI infrastructure, including AI-optimised servers and foundational systems, which will account for 17% of total AI spending next year. Gartner estimates infrastructure alone will add $401 billion in incremental spending as technology providers scale up AI foundations

Driving the AI trend

Large enterprises and incumbent technology vendors are leading AI adoption, rather than startups chasing moonshot projects. According to Gartner, organisations are increasingly relying on existing software providers to embed AI into current systems, reflecting a more cautious and outcome-driven approach.

“AI adoption is fundamentally shaped by the readiness of both human capital and organisational processes, not merely by financial investment,” said John-David Lovelock,  VP Analyst at Gartner.

The forecast covers global AI spending in 2026, with growth expected across key markets including AI services, software, cybersecurity, and data platforms. AI services spending alone is projected to rise from $439 billion in 2025 to nearly $589 billion in 2026, while AI software spending is expected to cross $452 billion

Despite record investment, Gartner cautions that AI is entering the “Trough of Disillusionment” phase of the technology hype cycle in 2026. Enterprises are becoming more selective, focusing on return on investment (ROI), governance, and scalability, rather than experimental deployments.

“Improved predictability of ROI must occur before AI can truly be scaled up by the enterprise,” Lovelock said, noting that AI purchases are increasingly tied to proven business outcomes rather than future potential

Gartner projects total global AI spending to rise further to $3.33 trillion by 2027, underscoring that while expectations are being reset, long-term investment in AI remains intact

India And Startups

For startups—particularly in markets like India—the shift signals a move away from valuation-led narratives toward applied AI use cases, enterprise integration, and infrastructure-led innovation. Sectors such as AI cybersecurity, enterprise software, and data science platforms are expected to see sustained demand, while standalone AI model development remains a smaller portion of overall spending.

As artificial intelligence matures, the global market is entering a phase defined less by hype and more by execution. The next wave of growth will be shaped by infrastructure readiness, enterprise discipline, and the ability of technology providers, and startups to deliver measurable business value at scale.