AI Bubble Concerns Fade... Global AI Spending Expected to Surge 47% This Year

Gartner: "AI Market to Reach $2.5957 Trillion"

AI Infrastructure Accounts for 55% of Total

AI Spending to Expand to $3.5 Trillion by 2027

Enterprise Adoption Set for a Turning Point Next Year

This year, global spending on artificial intelligence (AI) is projected to surge by 47% compared to last year, reaching $2.5957 trillion (approximately 3,886 trillion won). Despite concerns over overheating and a potential bubble in AI investment, this indicates that the infrastructure investment cycle of major cloud companies and hyperscalers could last longer than the market anticipates.

Global spending on artificial intelligence (AI) this year is expected to surge by 47% compared to last year, reaching 2.5957 trillion dollars (approximately 3,886 trillion won). An image of the world's largest mobile technology expo in 2023. Photo by Joint Press Corps

On May 21, Yonhap News cited a report released by U.S. market research firm Gartner, which forecasts that global AI spending this year will reach $2.59567 trillion. This represents a 47% increase from last year’s $1.76495 trillion. By 2027, the figure is expected to expand to $3.49336 trillion (about 5,230 trillion won).

AI Infrastructure Accounts for 55% of Total

The largest share is taken by AI infrastructure. Gartner predicts that AI infrastructure spending will reach $1.4315 trillion this year, accounting for about 55% of total AI spending. Major investment targets include AI-optimized cloud infrastructure, AI servers, networking equipment, AI processing semiconductors, and devices. John-David Lovelock, Vice President and Distinguished Analyst at Gartner, stated, “In the coming years, the demand for capacity will make AI infrastructure the largest segment of the market. Spending on AI-optimized servers will triple in the next five years, becoming the largest subsegment within infrastructure.” He explained that as generative AI models and agent-based workflows proliferate, cloud service providers are proactively expanding server capacity.

Global AI Market Spending Forecast by Sector. Gartner Report

The fastest-growing segment is AI models. This year, AI model spending is expected to reach $32.6 billion, up 110% from the previous year. As companies increasingly utilize generative AI models embedded in existing software and deploy AI agents for business process automation, model consumption is rapidly rising. AI cybersecurity spending is also projected to surge. Spending in this segment is expected to reach $51.3 billion this year, up 98% compared to last year. This is attributed to the rising security threats targeting AI systems and data environments, which is driving increased demand for defensive infrastructure.

AI Services and Software Markets Also Poised for High Growth

The AI services and AI software markets are also expected to maintain strong growth. Gartner projects AI services spending this year to reach $585.5 billion, and AI software spending to reach $453.2 billion, rising by 34% and 60% respectively year-on-year. Notably, Gartner points out that while the current focus of AI spending is on technology companies and hyperscalers, large-scale AI investment by general enterprises is still in its early stages. Lovelock said, “So far, AI spending has mainly been led by technology companies and hyperscalers. The spending potential of enterprises has yet to be fully realized, and 2026 will likely be an inflection point.”

The AI services and AI software markets are also expected to continue their rapid growth. Gartner forecasted this year’s AI services spending to reach $585.5 billion and AI software spending to reach $453.2 billion, respectively. The photo shows the scene from the world’s largest mobile technology expo in 2023. Photo by the Joint Press Corps

However, companies are still approaching AI primarily through tactical projects aimed at improving efficiency and productivity, rather than as a tool for company-wide innovation. As a result, Gartner explains that Chief Information Officers (CIOs) face the challenge of proving the effectiveness of AI investments and linking them to actual business outcomes. This projection also supports mid- to long-term demand expectations for AI semiconductor, server, and network equipment companies including Nvidia. Previously, Citigroup also raised its AI-related infrastructure spending forecasts for big tech companies, citing aggressive early investments by hyperscalers and expanding enterprise demand.

This content was produced with the assistance of AI translation services.