Global spending on artificial intelligence (AI) is set to reach nearly $1.5 trillion in 2025, according to Gartner, Inc. The research and advisory firm projects that continuous demand for AI solutions will fuel robust investments across IT infrastructure, applications, and consumer devices.
“The forecast assumes continued investment in AI infrastructure expansion, as major hyperscalers continue to increase investments in data centers with AI-optimized hardware and GPUs to scale their services,” said John-David Lovelock, Distinguished VP Analyst at Gartner.
He added that the AI investment landscape is broadening beyond traditional U.S. tech giants. “Chinese companies and new AI cloud providers are entering the fray. Furthermore, venture capital funding in AI providers is providing additional tailwinds for AI spending,” Lovelock noted.
The Road Ahead: $2 Trillion by 2026
Looking beyond 2025, Gartner forecasts overall AI spending will surpass $2 trillion in 2026, driven largely by the integration of AI into mainstream consumer products such as smartphones and PCs, as well as expanded infrastructure adoption.
Where the Money Is Going
The report highlights that spending growth will be spread across multiple segments. AI services are set to grow steadily, while application and infrastructure software will see rapid acceleration. Generative AI models, still nascent, are expected to multiply in scale and adoption. Hardware is another major driver, with AI-optimized servers and accelerators nearly doubling within two years.
On the consumer side, AI-enabled PCs and smartphones are poised to contribute significantly, with combined spending projected to cross half a trillion dollars by 2026. This illustrates how AI is quickly moving from niche enterprise use cases into everyday technology products.
Bottom Line
As AI becomes the defining force of digital transformation, enterprises, governments, and consumers alike are driving unprecedented investment. From hyperscaler data centers to everyday devices in people’s hands, the next two years will mark a tipping point for AI adoption and economic impact.