Gartner recently updated its IT spending forecast, predicting a significant surge in artificial intelligence (AI) investment over the next few years.
Worldwide AI spending is expected to jump 49.5% in 2026, reaching $2.7 trillion, followed by another 36.2% increase in 2027 as organizations increasingly adopt AI solutions. This growth isn’t coming from diverted IT budgets—instead, companies are allocating new funds and re-evaluating existing investments through an AI lens.
“We’re seeing a transformation where almost every technology purchase now includes some form of AI capability,” explained Gartner Distinguished VP Analyst John-David Lovelock. “Instead of buying just software, organizations are looking for solutions with embedded AI features.”
The forecast indicates that AI infrastructure spending will grow by 51.2% this year, while AI software investments will increase by 60.2%. Notably, spending on AI agents and assistants is projected to rise by a remarkable 77.3%, and security measures for AI systems are expected to nearly double.
Perhaps one of the most surprising aspects of this forecast is the impact on semiconductor demand. Lovelock noted that chip spending will likely exceed $2 trillion by 2030—more than double previous estimates—driven largely by increased memory requirements for AI applications. This surge in demand has already contributed to higher component prices.
With this rapid evolution, Gartner advises CIOs to prioritize flexibility and risk management as they navigate the changing technology landscape. “The next few years will bring major transitions in how we use and deploy AI,” Lovelock warned. “Organizations that can adapt quickly while managing risks effectively will be best positioned for success.”