Gartner Forecasts AI Spending to $2.59 Trillion

Gartner, a business and technology insights company, forecasts that worldwide spending on Artificial Intelligence will reach $2.59 trillion in 2026, marking a 47% increase from 2025. This growth is primarily driven by the demand for AI infrastructure, including AI-optimized IaaS, servers, network fabric, semiconductors, and devices, which will account for over 45% of the market. John-David Lovelock, a Distinguished VP Analyst at Gartner, noted that while technology companies and hyperscalers have largely driven AI spending so far, 2026 is expected to be an inflection year as enterprises begin to scale their AI investments more aggressively. Spending on AI models is projected to grow by 110% in 2026, and AI cybersecurity spending is also expected to nearly double. Despite the rapid growth, enterprises are currently favoring tactical AI initiatives for incremental improvements rather than disruptive changes, posing challenges for CIOs in demonstrating tangible business outcomes.