AI software market set to top $200 billion in 2026

A new report from market research firm Omdia says global AI software revenue will top $200 billion in 2026, double the 2024 level, driven by companies spending more on AI assistants and coding tools.

Generative AI revenue is expected to jump 139% in 2026, well above earlier forecasts. Agentic AI has fewer users so far but is growing much faster, with an expected annual growth rate of 104% from 2025 to 2031.

Omdia chief forecaster Neil Dunay says as AI assistants gain agent-like skills and automated workflows replace typing prompts, the line between the two types of AI will blur. The market may soon be split by how autonomous an AI is.

In the long run, the AI software market is expected to grow 30% a year from 2025 to 2031. By 2028, generative AI could overtake predictive AI as the biggest source of revenue.