New Delhi, May 19 (IANS) Worldwide spending on artificial intelligence is projected to jump 47 per cent year-on-year to $2.59 trillion in 2026, driven largely by rising investments in AI infrastructure and AI-optimised servers as enterprises and cloud providers accelerate adoption of generative AI and agentic workflows, a report said on Tuesday.

The report from Gartner said AI‑optimized infrastructure including AI‑optimized IaaS, servers, network fabric, processing semiconductors and devices will account for over 45 per cent of spending as vendors expand capacity.

“Within this segment, spending on AI‑optimized servers will triple over the next five years to become the largest subsegment, as cloud services providers expand capacity in anticipation of the workloads created by GenAI models and agentic workflows,” said John‑David Lovelock, Distinguished VP Analyst at Gartner.

The firm raised its short‑term outlook for AI models to 110 per cent growth in 2026, adding $6 billion in spending for this year.

Enterprises will expand their use of both the GenAI models embedded in existing software applications and the new AI agents within multiple workflows.

Model consumption will increase through multistep processes and integration into broad suites of tools as enterprises recognize the potential value of agentic automation, the report noted.

The report forecasted spending on AI infrastructure rising from $9,75,581 million in 2025 to $14,31,509 million in 2026, while total AI spending will climb from $17,64,947 million to $25,95,667 million.

Lovelock said that AI spending has primarily been driven by technology companies and hyperscalers till now. Enterprises have yet to really flex their spending potential, which is set to happen in 2026, he added.

The report warned that CIOs face challenges in proving the value from AI investments and demonstrating tangible business outcomes.

“Aligning AI initiatives with strategic business objectives is the essential step for success. This incremental approach persists despite AI hype and valuations that reflect aspirations to transform the broader economy,” Lovelock said.

—IANS

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