Global AI software revenue will exceed $200 billion in 2026, according to Omdia’s latest Artificial Intelligence Software Market Forecasts. That figure doubles the 2024 level. Generative AI is leading this surge in AI software revenue.
Omdia’s new forecast shows accelerating demand for both generative AI and agentic AI. As a result, the firm made the largest upward revision to its semiannual market outlook since the COVID-19 pandemic.
“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,” said Neil Dunay, Omdia Principal Market Forecaster.
Omdia now expects generative AI revenue to grow by 139% in 2026. That rate runs well ahead of earlier projections. Enterprises are expanding deployments of AI assistants, coding tools, and embedded AI capabilities across business applications. Meanwhile, agentic AI remains at an earlier stage of adoption. However, it is expanding even faster from a smaller revenue base.
Why the AI Software Market Is Accelerating in 2026
Technology market maturation often sees yearly growth decelerate after a period of initial hype. However, generative and agent-based AI is throwing a wrench in that system as unusual acceleration appears on the radar in 2026. Upward momentum in AI’s value growth will moderate as it integrates into company operations and moves down in cost and complexity. Leading foundation model providers report year-on-year revenue growth of 3x to 10x. Hyperscalers see triple-digit growth in their AI cloud segments. And enterprise software vendors compete by launching both AI-enhanced and AI-native products.
According to Omdia, the rapid growth observed in 2026 will not be sustained in subsequent years. The market will enter into a maturity phase and follow typical adoption trends in the following years. Nonetheless, revenue generation will happen at a much larger starting point. The market for AI software will still be in a state of robust expansion. Omdia expects AI software revenue to grow at a CAGR of 30% from 2025 onward until 2031.
According to the new forecast, there are also long-term structural changes. By 2028, generative AI will overtake predictive AI as the biggest segment in AI software income. Simultaneously, AI helpers are starting to be more independent, performing multi step jobs for humans. This leads to overlapping between generative and agency 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.
Omdia has been publishing its Artificial Intelligence Software Market Forecasts on a consistent basis since 2016. The report covers agentic, generative and predictive AI. This offers revenue forecasts for some 120 use cases in 20 industry sectors and eight geographic regions. In particular, revenue estimates only reflect the artificial intelligence technology component (AI value-add). They do not represent the total value of the software solution. For a complete analysis by use case and market type, see Omdia’s complete 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. The research also covers the opportunities and challenges these trends present for the year ahead.
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News Source: Businesswire.com
