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

Synopsis
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.
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