TLDR: Australian IT expenditure is projected to reach A$172.3 billion by 2026, marking an 8.9% increase from 2025. This growth is primarily driven by substantial investments in AI infrastructure and software, with organizations expanding their focus beyond generative AI to encompass a wider range of AI technologies. IT services are identified as the largest spending area, expected to grow to A$55.7 billion in 2025 and A$58.8 billion in 2026.
Sydney, Australia – According to recent insights from Gartner, Australia’s total IT spending is set to achieve a significant milestone, reaching an estimated A$172.3 billion by the year 2026. This represents a robust 8.9 percent increase from the projected spending in 2025, underscoring a dynamic period of technological adoption and investment across the continent.
The surge in IT expenditure is largely attributed to a strong growth trajectory in artificial intelligence (AI) infrastructure and software. Organizations are strategically broadening their investment scope, moving beyond the initial focus on generative AI (GenAI) to embrace a more comprehensive array of AI-related technologies. This shift indicates a maturing understanding of AI’s diverse applications and its potential to drive value across various business functions.
Breaking down the investment landscape, IT services emerge as the dominant spending category. For 2025, IT services are forecast to grow by 3.8 percent, reaching A$55.7 billion. This upward trend is expected to continue into 2026, with a further increase of 5.6 percent, pushing the sector’s value to A$58.8 billion. This highlights the critical role of professional services in supporting the complex implementation and management of advanced IT and AI solutions.
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The Gartner Symposium, a key event for industry leaders, has consistently emphasized the importance of AI readiness for businesses aiming to extract tangible value from their technology investments. The latest projections reinforce the notion that AI is not merely a trend but a fundamental component of future IT strategies, necessitating substantial and diversified financial commitments from Australian enterprises.
