Global spending on artificial intelligence (AI) is expected to reach $2.7 trillion in 2026, a 49.5% increase compared to the previous year, according to the latest forecasts from Gartner, a company specializing in strategic and technological analysis. The growth is driven primarily by infrastructure needs, including servers, networks, and specialized AI chips. Despite rising memory prices, demand for these components remains strong, according to John-David Lovelock, a vice president and distinguished analyst at Gartner. He notes that the development of AI-focused data centers is one of the largest infrastructure projects in human history, with continued investment in AI-optimized servers by large technology companies and service providers. In the software sector, publishers are quickly integrating AI tools into their existing products to stay competitive and protect their market share. While generative AI—technology that can create text, images, or other content—has entered a "disillusionment phase" in 2026, many companies are now using simpler AI features offered by their usual software providers to improve efficiency, automate tasks, and enhance customer interactions. Lovelock explains that businesses are increasingly relying on their existing software systems to incorporate AI capabilities, rather than hiring service providers for major transformations. This shift is despite the risks of supplier dependency, data control issues, and higher costs. Looking ahead, the short-term outlook for AI-based application development platforms has improved, with growth expectations rising from 28% in 2026 to 39% in the latest forecasts. This increase reflects a growing demand for customized AI applications tailored to specific business needs. Companies are working with suppliers to manage costs and track how AI tools are used in their operations. Meanwhile, model providers are under pressure to offer more cost-effective and industry-specific AI models, opening up opportunities for domain-specific language models (DSLMs). As a result, the projected growth rate for generative AI models has increased slightly, from 110% to 117% in Gartner's current forecasts. In the long term, Gartner has made a distinction between cross-functional AI assistants and traditional AI software, including public-facing agents in its spending forecasts. This change aims to better highlight emerging opportunities in the AI space. The forecasts underscore the growing importance of AI across various sectors, with continued investment expected to shape the global technology landscape in the coming years.