AI Software Revenue Forecast to Surpass $200 Billion in 2026

Global revenue for artificial intelligence software is projected to exceed $200 billion by 2026, representing a twofold increase from 2024 levels, according to Omdia. The analysis cites accelerating demand for both generative and agentic AI, necessitating the most significant upward adjustment to the firm's semiannual market forecast since the COVID-19 pandemic began.

Generative AI revenue is currently anticipated to expand by 139% in 2026, significantly surpassing previous estimates as enterprises increase the deployment of AI assistants, coding utilities, and integrated AI features within corporate applications. Agentic AI, while in a preliminary stage of adoption, is expanding at an even greater rate from a smaller initial revenue baseline.

Technology markets generally experience a deceleration in annual growth as adoption matures. In 2026, however, generative and agentic AI are facilitating an atypical acceleration. This revised outlook reflects rapid expansion across the AI value chain, including massive revenue growth among foundation model providers, triple-digit growth in hyperscale AI cloud segments, and intensified competition among software vendors launching AI-native products.

Omdia anticipates these exceptional growth rates will moderate in subsequent years as the market matures and settles into a more conventional adoption trajectory from a significantly larger revenue base. AI software remains on a robust long-term growth path. The market is forecast to achieve a 30% CAGR from 2025 to 2031, with agentic AI projected as the fastest-growing segment at a 104% CAGR during this period.

The revised forecast also emphasizes significant long-term structural transitions. By 2028, generative AI is expected to overtake predictive AI as the primary revenue segment within the AI software market. Simultaneously, AI assistants are attaining increased autonomy and executing multi-step operations for users, effectively diminishing the distinction between generative and agentic AI systems.

"As generative assistants acquire agentic capabilities and automated workflows gradually supersede human-directed prompting, the differentiation between generative and agentic AI may lose its practical significance. The market could instead be categorized by varying degrees of system autonomy," stated Neil Dunay, Omdia Principal Market Forecaster.