Omdia: AI Software Revenue to Surpass $200 Billion in 2026 Amid Generative AI Surge

LONDON--(BUSINESS WIRE)--Global AI software revenue will exceed $200 billion in 2026, double its 2024 levels, according to Omdia's latest Artificial Intelligence Software Market Forecasts.

Omdia's new forecast identifies accelerating demand for both generative AI and agentic AI, prompting the largest upward revision to its semiannual market outlook since the COVID-19 pandemic.

Generative AI revenue is now expected to grow by 139% in 2026, well ahead of earlier projections, as enterprises expand deployments of AI assistants, coding tools, and embedded AI capabilities across business applications. Agentic AI, while still at an earlier stage of adoption, is expanding even faster from a smaller revenue base.

Technology markets typically see annual growth slow as adoption matures. In 2026, however, generative and agentic AI are driving an unusual acceleration. The upward revision reflects rapid growth across the AI value chain, including year-over-year revenue expansion of 3x to 10x among leading foundation model providers, triple-digit growth in AI cloud segments among hyperscalers, and competition among enterprise software vendors launching both AI-enhanced and AI-native products.

Omdia predicts the exceptional growth rates seen in 2026 to moderate in subsequent years as the market matures and returns to a more typical adoption trajectory, with a substantially larger revenue base. AI software remains on a strong long-term expansion path. The market is forecast to grow at a 30% CAGR from 2025 to 2031, with agentic AI projected to be the fastest-growing segment at 104% CAGR during the period.

The updated forecast also highlights longer-term structural shifts. By 2028, generative AI is projected to surpass predictive AI as the largest AI software revenue segment. At the same time, AI assistants are gaining greater autonomy and increasingly executing multi-step tasks on behalf of users, blurring the lines between generative and agentic AI.

"As generative assistants take on agentic capabilities and automated workflows increasingly replace human-directed prompting, the distinction between generative and agentic AI may become less meaningful. The market could instead be defined by differing levels of autonomy," said Neil Dunay, Omdia Principal Market Forecaster.

Published continuously since 2016, Omdia’s Artificial Intelligence Software Market Forecasts covers agentic, generative, and predictive AI, providing revenue forecasts for approximately 120 use cases across 20 industry sectors and eight geographic regions. Revenue estimates reflect only the AI technology component (AI value-add), rather than the total value of the software solution. For a complete breakdown by use case and market type, see Omdia’s full AI software forecast.

What will shape your business in 2027? Explore Omdia’s The Forces Shaping 2027 for research and insights on AI monetization, supply chain disruption, digital sovereignty, and physical AI, and the opportunities and challenges they present for the year ahead.

About Omdia

Omdia, part of Informa Tech, is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.