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AI Software Revenue to Hit $200B by 2026
10 Nov
Summary
- Global AI software revenue will surpass $200 billion by 2026.
- Demand for generative and agentic AI drives accelerated market growth.
- Generative AI is predicted to overtake predictive AI by 2028.
Global AI software revenue is set to surpass $200 billion by 2026, more than doubling its 2024 figures. This significant growth is fueled by a rapidly increasing demand for both generative and agentic AI. Omdia's forecast indicates a substantial upward revision, reflecting broad expansion across the AI value chain.
Generative AI revenue is predicted to skyrocket by 139% in 2026 as businesses integrate AI assistants and tools. Agentic AI, though in earlier adoption stages, is demonstrating even faster growth. By 2028, generative AI is expected to become the dominant revenue segment, eclipsing predictive AI.
The AI market is experiencing an unusual acceleration, with leading foundation model providers seeing revenue increases of 3x to 10x. Hyperscalers are reporting triple-digit growth in AI cloud segments. This trend is further intensified by enterprise software vendors launching new AI-enhanced and AI-native products.
Looking ahead, the AI software market is projected to grow at a 30% compound annual growth rate from 2025 to 2031. Agentic AI is anticipated to lead this expansion with a remarkable 104% CAGR during the same period. As AI assistants gain more autonomy and execute complex tasks, the distinction between generative and agentic AI may blur, with autonomy becoming the key market definer.
