AI model spending to surge 63% in 2026

Global end-user spending on AI models and platforms is expected to hit US$64 billion in 2026, a 63.4 percent increase from US$39 billion in 2025, according to Gartner.

The sharpest growth of 117 percent is expected in generative AI with enterprises increasing spending on both foundation models and specialised domain models. AI platform spending is predicted to rise 36.9 percent this year.

“Spending is shifting toward providers who can demonstrate clear value across cost, latency, performance and reliability,” said Arunasree Cheparthi (top), Senior Principal Research Analyst of Gartner. “Over the long-term, the biggest winners will be vendors that help enterprises manage where and how AI is used across the business.”

“As more models enter the market and usage-based pricing becomes harder to predict, buyers will turn to platforms that help them choose the right tools, monitor performance, enforce policy and keep costs under control,” she added.

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