End-user spending on generative AI (GenAI) models is set to surge, reaching $14.2 billion globally in 2025, according to the latest forecast by Gartner, Inc. The projected total represents a 148.3% increase over 2024, signaling the expanding adoption of GenAI technologies across enterprise sectors.
The spending is expected to be driven by both foundation GenAI models, such as large language models (LLMs), and specialized GenAI models, which are fine-tuned for specific industries or business processes. Foundation models will continue to dominate in scale and use, but the most dramatic growth will come from domain-specific models.
According to Table 1 from Gartner’s report:
- Spending on foundation GenAI models will grow from $5.4 billion in 2024 to over $13 billion in 2025, a 141% increase.
- Spending on specialized GenAI models, including domain-specific language models (DSLMs), will jump from $302 million to $1.15 billion, marking a 279% year-over-year growth.
| Market | 2024 Spending ($M) | 2024 Growth (%) | 2025 Spending ($M) | 2025 Growth (%) |
|---|---|---|---|---|
| Foundation GenAI Models | 5,416 | 306.3% | 13,053 | 141.0% |
| Specialized GenAI Models | 302 | 1,010.2% | 1,146 | 279.2% |
| Total | 5,719 | 320.4% | 14,200 | 148.3% |
Source: Gartner (July 2025)
Specialized GenAI models, such as DSLMs, are increasingly gaining traction for their enhanced performance, cost efficiency, and domain relevance, especially in enterprise-specific applications like healthcare, finance, and legal services.
“Foundation GenAI models… will continue to represent the largest area of spending by organizations in the coming years,” said Arunasree Cheparthi, Senior Principal Research Analyst at Gartner. “However, organizations are also turning to more domain-specific or vertical GenAI models because they offer improved performance, cost, reliability and relevance in targeted enterprise use cases.”
Gartner anticipates that by 2027, more than 50% of enterprise GenAI models will be domain-specific, a sharp rise from just 1% in 2024. This shift illustrates a broader industry trend towards tailored, context-aware AI solutions that align more closely with specific organizational needs and workflows.
The full forecast and strategic insights are available to Gartner clients in the report Forecast: Generative AI Models, Worldwide, 2023–2029, 2Q25 Update. Organizations can also explore opportunities through the complimentary Gartner ebook Top GenAI Opportunities for Tech Products.
