Gartner Forecasts Global AI Model and Platform Market to Reach $64 Billion by 2026
Gartner forecasts that global end-user spending on AI models and platforms will reach $64.25 billion by 2026, representing a 63.4% increase from 2025. This growth is heavily driven by investments in generative AI, particularly domain-specific language models (DSLMs) which are projected to grow by 210%. This shift indicates that enterprises are moving past general-purpose AI hype toward practical, cost-effective applications. Vendors who offer transparency in costs, usage tracking, and performance optimization will have a competitive advantage as budgets face stricter scrutiny. While foundation GenAI models will double to $23.36 billion, DSLMs and specialized GenAI models will see the fastest growth rate at 210%, reaching $4.91 billion. Meanwhile, data science and machine learning platforms will remain the largest spending category, reaching $26.44 billion in 2026.
## BACKGROUND
Domain-Specific Language Models (DSLMs) are generative AI models trained or fine-tuned on specialized datasets to excel in specific industries or tasks. Unlike general Large Language Models (LLMs), DSLMs offer higher accuracy, compliance, and relevance for enterprise-specific needs while often reducing operational costs and latency.