AI Software Revenue Set to Top $200 Billion
Omdia forecasts global AI software revenue to exceed $200 billion in 2026, its largest upward revision since the COVID-19 pandemic.
Updated on Nov. 10, 2026 in Artificial Intelligence
Live Poll
Do you expect AI to make your everyday products and services better or worse?
Omdia projects global AI software revenue will surpass $200 billion in 2026, double its 2024 level. The firm's semiannual outlook was revised upward by the largest margin since the COVID-19 pandemic.
Why it matters
The revision reflects accelerating demand for generative and agentic AI as enterprises expand deployments of AI assistants, coding tools, and embedded AI features across business applications. The figures signal sustained growth in the global AI software market worldwide.
Omdia's forecast covers approximately 120 use cases across 20 industry sectors and eight geographic regions, with agentic AI projected to grow at a 104% CAGR from 2025 to 2031. The estimates count only the AI technology component, not the total value of software solutions that embed it.
The players
Omdia
Omdia is a global technology research and advisory firm that publishes market forecasts across AI, cloud, and other technology sectors.
The details
Omdia's forecast is based on its Artificial Intelligence Software Market Forecasts, published continuously since 2016. Leading foundation model providers are reporting year-over-year revenue growth of 3x to 10x, and AI cloud segments among hyperscalers are growing at triple-digit rates.
Timeline
2024: Baseline year for the doubling comparison to 2026 revenue.
2026: AI software revenue forecast to exceed $200 billion.
2028: Generative AI projected to surpass predictive AI as the largest AI software revenue segment.
2031: End of the forecast period for a 30% market CAGR.
The Tech Race
The upward revision places AI software among the fastest-expanding technology markets, with generative AI expected to surpass predictive AI as the largest segment by 2028. The pace of growth underscores the intensifying competition among foundation model providers and hyperscale cloud operators.
Businesses adopting AI assistants, coding tools, and embedded AI features will see these products reach more of their workflows as vendors expand offerings. Users of business software should expect more AI capabilities built into the applications they already use.
The takeaway
Growth in AI software is being driven by real enterprise deployments, not only experimentation. Readers evaluating AI tools should track how vendors price and package embedded features as adoption scales.
Further reading
Explore more on the Artificial Intelligence section for context on how these market projections are shaping the industry.
Source note: This article includes information reported by AFP.
Live Poll
Do you expect AI to make your everyday products and services better or worse?
