Gartner's AI spending forecast: 60% growth in 2026 sets new GTM benchmarks

The Gist

• AI software spending hits $453B in 2026, up 60% YoY
• Cybersecurity leads growth at 98%, AI models at 110%, AI data at 278%
• Companies growing below category rates are losing budget share despite growth
• 2027 forecast shows $638B market with 41% growth

• AI software spending is forecasted to grow by 60% in 2026, setting a new benchmark for B2B software spending.
• The AI software market is projected to reach $453B in 2026 and $638B in 2027, surpassing the entire global SaaS market of 2022.
• Companies growing slower than the AI software category growth rate (60% in 2026, 41% in 2027) are losing budget share.
• AI Cybersecurity is growing at 98%, AI Models at 110%, and AI Data at 278% in 2026, making sub-category competition brutal.
• Vendors who help CIOs prove ROI to their boards will dominate the market, turning customer success into a competitive advantage.
• 2027 will see even larger growth in AI software spending, making it the largest software market expansion in history.

• Ensure your company's growth rate matches or exceeds the AI software category growth rate (60% in 2026, 41% in 2027) to avoid losing budget share.
• Focus on sub-categories with the highest growth rates (e.g., AI Data at 278%) to capitalize on the most lucrative opportunities.
• Develop robust deployment playbooks and customer success strategies to help CIOs prove ROI, differentiating your offering in a competitive market.
• Align fundraising and expansion plans with the projected $638B AI software market in 2027 to position your company for long-term success.

• 60% (Growth rate of AI software spending in 2026)
• $453B (Projected AI software TAM in 2026)
• $638B (Projected AI software TAM in 2027)
• 41% (Growth rate of AI software spending in 2027)
• 98% (Growth rate of AI Cybersecurity in 2026)
• 110% (Growth rate of AI Models in 2026)
• 278% (Growth rate of AI Data in 2026)