Gartner Predicts Global AI Expenditure Will Climb to $2.59 Trillion by 2026

Worldwide spending on AI is forecast to total $2.59 trillion in 2026, marking a strong 47% increase from the previous year, according to Gartner.
 
According to the report, AI infrastructure will dominate spending, accounting for over 45% of the total market. 
 
This includes AI-optimized servers, semiconductors, network fabric, and IaaS. 
 
Spending on AI-optimized servers is expected to triple over the next five years as cloud providers expand capacity for GenAI models and agentic workflows.
 
AI Models will see explosive 110% growth in 2026, adding $6 billion in spending. 
 
Enterprises are rapidly adopting both embedded GenAI features and new AI agents across multiple workflows.
 
While hyperscalers and technology companies have driven most AI investment so far, 2026 is expected to be the inflection year as enterprises begin to increase their spending significantly.
 
However, most organizations are still pursuing tactical AI initiatives focused on efficiency rather than disruptive transformation. 
 
CIOs face the key challenge of proving tangible business value from these investments.