Will Worldwide Spending on AI Reach Nearly $1.5 Trillion by 2025?

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Will Worldwide Spending on AI Reach Nearly $1.5 Trillion by 2025?

Synopsis

A recent report reveals that global spending on artificial intelligence is set to soar to nearly $1.5 trillion by 2025, reflecting a massive growth trajectory. This article explores the driving forces behind this surge and the future implications for the AI industry.

Key Takeaways

  • Global AI spending is projected to reach $1.5 trillion by 2025.
  • Anticipated growth of 50% from 2024.
  • Key sectors include smartphones, AI services, and infrastructure.
  • By 2026, global AI spending may exceed $2 trillion.
  • Investment landscape is broadening to include Chinese companies and new AI cloud providers.

New Delhi, Sep 22 (NationPress) Global expenditure on artificial intelligence (AI) is projected to approach $1.5 trillion by 2025, marking an increase of almost 50 percent from $987,904 in 2024, according to a report released on Monday.

Moreover, total worldwide AI spending is anticipated to exceed $2 trillion in 2026, driven by the incorporation of AI into devices like smartphones and PCs, as well as infrastructure developments, as per a report from Gartner, Inc., a business and technology insights firm.

Reflecting the spending trends of the previous year, generative AI integration in smartphones is expected to lead this year's expenditure at $298,189, followed closely by AI services at $282,556, AI-optimized servers at $267,534, AI processing semiconductors at $209,192, AI application software at $172,029, and AI infrastructure software at $126,177.

John-David Lovelock, Distinguished VP Analyst at Gartner, noted, "The projection assumes ongoing investments in AI infrastructure as major hyperscalers continue to enhance their data centers with AI-optimized hardware and GPUs to scale their services."

He added, "The landscape for AI investment is broadening beyond traditional U.S. tech leaders, encompassing Chinese firms and emerging AI cloud providers. Additionally, venture capital is increasingly supporting AI providers, further boosting AI spending."

The report forecasts that AI expenditure will reach $2.02 trillion in 2026, following a similar growth pattern.

In 2026, spending on generative AI integration in smartphones is projected to be $393,297, while AI services are expected to hit $324,669, and AI-optimized servers around $329,528.

Other AI expenditure categories include AI processing semiconductors at $267,934, AI application software at $269,703, and AI infrastructure software at $229,885.

Additional segments attracting AI investments include AI PCs by ARM and x86, AI-optimized IaaS, and Generative AI Models.

Gartner provides technology leaders and their teams with role-specific best practices, industry insights, and strategic perspectives on emerging trends and market shifts to achieve their critical objectives and build the successful organizations of tomorrow.

Point of View

I believe the projected surge in AI spending highlights the critical role of technology in shaping our future. It's essential for stakeholders across various sectors to understand these trends to adapt and innovate effectively. Our commitment is to provide insightful analysis to keep our audience informed.
NationPress
22/09/2025

Frequently Asked Questions

What is the projected AI spending for 2025?
The projected global spending on AI for 2025 is nearly $1.5 trillion.
How much did AI spending increase from 2024?
AI spending is expected to increase by approximately 50 percent from $987,904 in 2024.
Which sectors are driving AI spending?
AI integration into smartphones, PCs, and infrastructure are leading the spending.
What is the expected spending on generative AI in smartphones by 2026?
Spending on generative AI integration in smartphones is likely to reach $393,297 by 2026.
Who is providing the insights on AI spending?
The insights on AI spending come from Gartner, Inc., a leading business and technology insights firm.
Nation Press