Gartner projects worldwide AI software spending will surge 60% to $453 billion in 2026, followed by a 41% increase to $638 billion in 2027, according to saastr.com. This marks the largest single-year growth ever recorded in B2B software spending, surpassing the entire global SaaS market size of 2022.
The forecast, released last week, highlights the rapid expansion of AI software budgets across enterprises. Gartner’s data shows that AI software alone will outgrow every existing B2B software category combined within a few years. The report emphasizes that companies growing slower than these rates risk losing market share, as CIOs allocate more funds to AI solutions. Specific segments like AI cybersecurity and AI data are growing even faster, at 98% and 278% respectively in 2026.
This growth underscores the shifting priorities in enterprise technology spending, with AI becoming the dominant driver of software investments. The scale of the increase dwarfs previous trends and signals intensified competition among software vendors to capture a share of the expanding AI budget. The rapid expansion also reflects broader digital transformation efforts and the integration of AI capabilities across industries.
Looking ahead, the AI software market is expected to maintain this momentum into 2027, with spending reaching $638 billion. Companies will need to accelerate their AI innovation and go-to-market strategies to keep pace with the category’s growth rates. Gartner’s forecast sets a new benchmark for software vendors aiming to secure their position in the evolving AI landscape.