Institution: With the rapid development of generative AI, AI software revenue will exceed $200 billion in 2026.

Omdia’s latest AI Software Market Forecast projects global AI software revenue will exceed $200 billion in 2026, roughly double the 2024 level, driven by accelerating demand for generative AI and agentic AI. The research firm made its largest upward revision to the semiannual outlook since the COVID-19 pandemic, citing faster-than-expected adoption across both categories. The forecast puts AI software spending on a trajectory to become a major enterprise IT budget line, with the 2026 milestone arriving just two years after the 2024 baseline. The revision signals that demand for generative and agentic tools is outpacing earlier expectations, a shift that matters for software vendors, cloud providers and chipmakers positioning for AI workloads. What to watch next is whether vendor revenue and enterprise adoption data validate Omdia’s upgraded trajectory, and whether the agentic AI segment sustains its current growth rate through 2026.