NEW DELHI– Worldwide spending on artificial intelligence is projected to approach $1.5 trillion in 2025, marking a nearly 50 percent jump from this year, according to a new report from research firm Gartner, Inc.
The study estimates that AI-related expenditures will rise from $987.9 billion in 2024 to nearly $1.5 trillion next year, before surpassing $2 trillion in 2026. Growth will be fueled by the integration of generative AI into consumer devices like smartphones and PCs, as well as infrastructure investments.
Generative AI applications on smartphones are expected to account for the largest portion of spending this year at $298.2 billion, followed by AI services ($282.6 billion), AI-optimized servers ($267.5 billion), AI processing semiconductors ($209.2 billion), AI application software ($172 billion), and AI infrastructure software ($126.2 billion).
“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 no longer confined to U.S. technology giants. “Chinese companies and new AI cloud providers are entering the space, while venture capital investments in AI startups are adding further momentum,” Lovelock noted.
By 2026, Gartner expects global AI spending to reach $2.02 trillion, with generative AI on smartphones climbing to $393.3 billion, AI services at $324.7 billion, and AI-optimized servers at $329.5 billion. Spending on AI semiconductors is forecast to hit $267.9 billion, while AI application software and infrastructure software are expected to total $269.7 billion and $229.9 billion, respectively.
Additional segments driving growth will include AI-enabled PCs using ARM and x86 processors, AI-optimized infrastructure-as-a-service (IaaS), and generative AI model development.
Gartner said its forecasts aim to guide business and technology leaders as they navigate rapid AI adoption and prepare for disruptive shifts in industries worldwide. (Source: IANS)
