Gartner Forecasts AI Spending Rising to $3.64 Trillion by 2027 as IT Shrinks

Gartner's latest forecast projects AI spending rising 49.7 percent to $2.67 trillion in 2026 and 36 percent to $3.64 trillion in 2027, following a 2.6X jump to $1.79 trillion in 2025. Traditional IT spending is in recession, shrinking 12.5 percent in 2025 and projected to fall further, which the article says means AI spending will exceed traditional IT spending in 2027.