AI spending boosted US GDP by 0.4ppts in 2025 and we expect it to add a similar amount this year.
Tech spend
The US is leading the world in AI-driven investment, fuelling growth far ahead of other advanced economies. But with tariffs looming and adoption risks rising, could the tech-fuelled surge lose momentum in 2026 — or is there more upside to come?
Productivity gains from the use of Generative AI (GenAI) and other similar technological advancements are set to boost medium-term economic growth, but the gains will be spread unevenly across sectors.
How organizations invest in technology during economic downturns can be a strong indicator of their performance during hard times and the recoveries that follow. Our study presents a significant new dataset of technology spending from publicly available industry data to extract key lessons for investment strategies across a broad spectrum of industries and product categories in advanced economies.
We expect APAC to outpace both Europe and the US in terms of spending in 2024 and 2025. However, there are risks ahead.
Recent revenue performance of the tech sector tells a consistent story of industry’s leaders and laggards and confirms Oxford Economics’ forecasts for a significant shift within spend on enterprise technology as it enters a new era after the strong quarter century leading up to the pandemic.
