Why is Europe increasing AI spending so rapidly according to Gartner?

Europe is increasing AI spending due to regulatory pressure, geopolitical tensions, and a national security focus on developing independent AI systems.

What is the projected IT spending for 2026?

Gartner projects IT spending to rise 11.1% in 2026, reaching a total of $1.43 trillion globally.

How much is Generative AI spending expected to grow in Europe?

Generative AI model spending in Europe is expected to see a significant rise of 78.2%.

Home / Technology / Europe Bets Big on Own AI: IT Spending Soars

Europe Bets Big on Own AI: IT Spending Soars

19 Jan

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Summary

IT spending will increase by 11.1% to $1.43 trillion by 2026.
Generative AI spending in Europe is projected to rise by 78.2%.
Europe aims for AI independence, reducing reliance on foreign platforms.

Europe Bets Big on Own AI: IT Spending Soars

Global IT spending is set to reach $1.43 trillion in 2026, marking an 11.1% increase. Artificial intelligence deployment is a primary catalyst for this growth, with Generative AI models seeing a remarkable 78.2% surge in spending within Europe. This expansion is occurring even as many industries face budget constraints and limited workforce growth, underscoring the strategic importance placed on technology.

Europe's heightened investment in AI is significantly influenced by geopolitical factors and a drive for technological sovereignty. The continent is prioritizing the development and management of its own AI systems, aiming to reduce dependence on international providers. This strategic imperative is expected to lead 35% of countries to adopt region-specific AI platforms by 2026, up from just 5% currently.

This regional focus is further stimulating public cloud spending, projected to grow by 24% in 2026. While overall IT spending shows a robust increase, analysts caution that price hikes are artificially inflating these figures. Key spending categories include IT services, software, communication services, devices, and data center systems, with the latter showing substantial year-over-year growth.