Worldwide spending on artificial intelligence is forecast to hit €2.35 trillion in 2026, representing a 49.5% year-over-year increase, according to a report from Gartner, Inc., global research and advisory company. Driven by what Gartner analyst John-David Lovelock calls the largest infrastructure project humanity has ever undertaken, the rapid growth is powered by the massive buildout of AI data center capacity and the embedding of agentic AI into existing software.
As the report states, AI Infrastructure represents the largest market segment, projected to reach over €1.29 trillion in 2026, followed by AI Services at €501 billion and AI Software at €401 billion. With Generative AI in the Trough of Disillusionment in 2026, enterprises are prioritizing simpler, embedded AI tools to drive efficiency and automate workflows. Driven by these projects, the total market for AI services is expected to reach €1.04 trillion by 2030.
Gartner also revised its short-term outlook upward for select categories. The 2026 growth forecast for AI application development platforms was raised to 39% as organizations seek custom applications, while the growth projection for Generative AI models increased to 117%, bolstered by rising demand for cost-effective, domain-specific language models.
