Worldwide spending on AI is expected to be nearly $1.5 trillion in 2025: Report

New Delhi, Sep 22 (IANS) Worldwide spending on artificial intelligence (AI) is expected to be nearly $1.5 trillion in 2025, up nearly 50 per cent up from $987,904 in 2024, a report said on Monday.

Further, the overall global AI spending is likely to top $2 trillion in 2026, led by AI integration into products such as smartphones and PCs, as well as infrastructure, according to a business and technology insights company Gartner, Inc report.

Mirroring last year's spending graph, generative AI integration in smartphones would lead the spending at $298,189 this year as well, followed by AI services ($282,556), AI-optimised servers ($267,534), AI processing semiconductor ($209,192), AI application software ($172,029) and AI infrastructure Software ($126,177).

"The forecast assumes continued investment in AI infrastructure expansion, as major hyperscalers continue to increase investments in data centres with AI-optimised hardware and GPUs to scale their services," said John-David Lovelock, Distinguished VP Analyst at Gartner.

"The AI investment landscape is also expanding beyond traditional U.S. tech giants, including Chinese companies and new AI cloud providers. Furthermore, venture capital investment in AI providers is providing additional tailwinds for AI spending," he added.

According to the report, the AI spending would reach $2.02 trillion in 2026 following a similar growth trajectory.

In 2026, spending on Generative AI integration in smartphones is likely to be at $393,297. Meanwhile, the spending on AI Services would reach $324,669, and for AI-optimised servers, it would go around $329,528

Similarly, AI processing semiconductor ($267,934), AI application software ($269,703) and AI infrastructure software ($229,885) will also put weight in spending on AI.

The other segments, attracting AI spending, would be AI PCs by ARM and x86, AI-optimised IaaS, and GenAI Models.

Gartner providers equip tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organisations of tomorrow.

--IANS

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