The government of the United States of America has been steadily increasing their expenditure in AI, ML, and autonomy since 2018, having reached up from approximately **** billion U.S. dollars to **** billion U.S. dollars by 2023. In 2023, the largest share of this expenditure was directed specifically to machine learning.

The financial sector's spending on artificial intelligence (AI) is projected to experience substantial growth, with an estimated increase from ** billion U.S. dollars in 2023 to ***** billion U.S. dollars in 2028. This represents a compound annual growth rate (CAGR) of ** percent, indicating a significant upward trajectory in AI investment within the financial industry. AI investment across industries In 2023, the banking and retail sectors led in AI investments, with the banking sector accounting for **** billion U.S. dollars and the retail sector investing **** billion U.S. dollars. This demonstrates the varying degrees of AI adoption across different industries, with the financial sector poised for substantial growth over the coming years. These findings highlight the competitive landscape of AI investment and the potential for the financial sector to capitalize on AI technologies. Global corporate AI investment trends The global corporate investment in AI reached nearly ** billion U.S. dollars in 2022, marking a significant increase from previous years. Private investments played a substantial role in driving this growth, underscoring the increasing importance of AI development worldwide. This trend signifies a strong foundation for the expansion of AI technologies, with implications for the financial sector's investment landscape as it navigates the evolving AI market.

Spending on artificial intelligence (AI) varied greatly across industries in 2023, with the banking and retail industries delivering the largest AI investments in 2023. Worldwide spending on AI-centric systems was estimated at 154 billion U.S. dollars in 2023 across all industries. The banking sector's investments amounted to 20.6 billion U.S. dollars, the highest across the observed industries. It was followed by retail, with an investment value of 19.7 billion U.S. dollars. The financial sector's investments into AI are forecast to grow significantly between 2024 and 2027.

Banks across the Americas poured 19 billion U.S. dollars into artificial intelligence investments in 2024, marking a significant commitment to AI technology. This investment is projected to grow rapidly at a 30 percent compound annual rate over the next several years. By 2025, AI spending in the banking sector is expected to reach 25 billion U.S. dollars, before more than doubling to 54 billion U.S. dollars by 2028. Globally, the banking sector represents the majority of financial sector AI spending, which totaled 45 billion U.S. dollars in 2024.

Funding for artificial intelligence companies in the United States has increased exponentially in recent years, growing from a little under 300 million U.S. dollars in 2011 to around 16.5 billion in 2019. Overall worldwide funding in AI startups amounted to approximately 26.6 billion U.S. dollars in the same year. Artificial intelligence refers to the creation of intelligent hardware or software able to replicate human behaviors such as learning and problem solving.

Machine learning applications most funded   

Companies focusing on machine learning applications are the most funded in the artificial intelligence (AI) market. Machine learning application companies raised 37 billion U.S. dollars in cumulative funding as of September 2019. Other well-funded AI categories include machine learning platforms as well as computer vision applications and platforms. Intel Capital is the leading AI investor with a total of 60 investments in AI companies as of April 2021. 500 Startups, NEA and Y Combinator also rank high in terms of AI investment deals.

Analysis of ‘US Military Spending by Year (1960 - 2020)’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://www.kaggle.com/brandonconrady/us-military-spending-by-year-1960-2020 on 28 January 2022.

--- Dataset description provided by original source is as follows ---

Content

Lists the military spending, GDP, and population estimate for the US each year from 1960 to 2020.

Acknowledgements

Banner image source: https://unsplash.com/photos/BQgAYwERXhs

--- Original source retains full ownership of the source dataset ---

Introduction

The market for AI in Education is experiencing significant growth, with projections suggesting it will increase from USD 3.6 billion in 2023 to USD 73.7 billion by 2033, growing at a CAGR of 35.10%. This growth is driven by several factors, including a growing interest in personalized learning, significant investments in AI and EdTech, and the increased use of Intelligent Tutoring Systems (ITS) in the learning process. Partnerships with content providers and the adoption of cloud-based services are also key drivers. However, data safety and security issues, limitations of ITS, and the scarcity of skilled professionals pose significant challenges.

Recent trends include the use of voice assistants in classrooms and AI's role in content creation, streamlining the educational content development process. Predictive analytics are also revolutionizing how educators approach student performance, offering early interventions and personalized support. The drive towards digital learning, personalized educational journeys, and the democratization of AI tools underlines the sector's dynamic growth potential. Yet, high costs associated with advanced AI solutions and data privacy concerns are notable impediments. Integrating AI technologies with existing infrastructures and the knowledge gap among educators regarding AI utilization remain substantial challenges.

Recent developments in the AI in Education sector include a notable wave of mergers, acquisitions, and funding activities. For instance, Instructure acquired Parchment for $835 million, establishing a stronger foothold in the student success domain. Similarly, Learneo's acquisition of Barnes & Noble Digital Student Solutions for $300 million consolidated its position in online learning resources. Roper Technologies' acquisition of Frontline Education for $3.7 billion marked a significant expansion into K-12 software solutions. EverFi's acquisition by Blackbaud for $750 million further illustrates the sector's dynamism, with Blackbaud enhancing its compliance training offerings for educational and non-profit institutions.

These strategic maneuvers highlight a growing trend towards consolidation, with companies seeking to strengthen their portfolios and enter new markets. The focus on AI and personalization, exemplified by Curriculum Associates' acquisition of SoapBox Labs, points to an industry in pursuit of more engaging and customized learning experiences. Additionally, the sector's outlook for 2024 anticipates continued interest in emerging technologies like AR/VR, gamification, and AI-driven microlearning tools, as organizations strive to make learning more immersive and adaptable.

Worldwide spending on data center systems is projected to reach over, 405 billion U.S. dollars in 2025, marking a significant 23 percent increase from 2024. This growth reflects the ongoing digital transformation across industries and the increasing demand for advanced computing capabilities. The surge in data center investments is closely tied to the rapid expansion of artificial intelligence technologies, particularly with the wake of generative AI. AI chips fuel market growth The rise in data center spending aligns with the booming AI chip market, which is expected to reach 92 billion U.S. dollars by 2025. Nvidia has emerged as a leader in this space, with its data center revenue skyrocketing due to the crucial role its GPUs play in training and running large language models like ChatGPT. The global GPU market, valued at 65 billion U.S. dollars in 2024, is a key driver of this growth, powering advancements in machine learning and deep learning applications. Semiconductor industry adapts to AI demands The broader semiconductor industry is also evolving to meet the demands of AI technologies. With global semiconductor revenues surpassing 526 billion U.S. dollars in 2023, the market is expected to approach 611 billion U.S. dollars in 2024. AI chips are becoming increasingly prevalent in servers, data centers and storage infrastructures. This trend is reflected in the data centers and storage semiconductor market, which is projected to grow from 78 billion U.S. dollars in 2023 to 136 billion U.S. dollars by 2025, driven by the development of image sensors and edge AI processors.

Expenditure on artificial intelligence (AI) showed significant diversity among industries in 2023, with the banking and retail sectors leading in terms of the most substantial AI investments during that year. The banking sector's spending accounted for **** percent of all investments, followed by the retail sector with **** percent. Worldwide spending on AI was estimated at *** billion U.S. dollars in 2023.

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Artificial Intelligence (AI) in BFSI Sector Market Size 2025-2029

The artificial intelligence (AI) in BFSI sector market size is forecast to increase by USD 101.35 billion, at a CAGR of 54.2% between 2024 and 2029.

The Artificial Intelligence (AI) market in the BFSI sector is witnessing significant growth, driven by the increasing need for enhanced operational efficiency. AI technologies, such as machine learning and natural language processing, are revolutionizing various BFSI processes, including fraud detection, risk assessment, and customer service. Moreover, the rise of cloud-based AI solutions is enabling smaller financial institutions to adopt these advanced technologies, thereby expanding the market's reach. Deep learning algorithms and machine learning models enhance risk management and algorithmic trading, while AI governance and infrastructure support big data processing and cloud computing.
Ensuring data security and privacy is another significant challenge, given the sensitive nature of financial data. Furthermore, integrating AI systems with existing legacy systems and ensuring seamless data transfer can be a complex process, requiring substantial resources and expertise. Effective management of these challenges will be crucial for companies seeking to capitalize on the market's opportunities and stay competitive in the rapidly evolving BFSI landscape.

What will be the Size of the Artificial Intelligence (AI) in BFSI Sector Market during the forecast period?

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In the BFSI sector, Artificial Intelligence (AI) is revolutionizing business operations and driving significant market trends. AI-powered customer onboarding streamlines the process, reducing costs and enhancing the customer experience. In capital markets, AI-driven customer segmentation and investment optimization provide data-driven insights for personalized financial recommendations. AI-powered financial modeling and portfolio management increase efficiency, while real-time fraud detection and cybersecurity threat prevention ensure security.
Furthermore, AI-powered payment processing and lending leverage data-driven risk management and automated underwriting to provide personalized services and improve overall customer satisfaction. Overall, AI is transforming the BFSI sector by automating processes, enhancing decision making, and providing personalized services, leading to increased efficiency and competitiveness. AI-powered investment banking and regulatory reporting automate complex processes, improving accuracy and reducing manual errors. AI-powered insurance underwriting and claims processing enable faster and more accurate risk scoring and claims management. Enhanced decision making is possible through AI-powered wealth management, trade finance, and lending.

How is this Artificial Intelligence (AI) in BFSI Sector Industry segmented?

The artificial intelligence (AI) in BFSI sector industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Banking
  Investment and securities management
  Insurance


Solution

  Software
  Services


Type

  Fraud detection and prevention
  Customer relationship management
  Data analytics and prediction
  Anti-money laundering
  Others


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By End-user Insights

The banking segment is estimated to witness significant growth during the forecast period. In the banking sector, Artificial Intelligence (AI) is revolutionizing business operations and customer experiences. Banks are adopting AI strategies to automate decision-making processes, develop cognitive models, and deploy predictive analytics for fraud detection and investment management. Speech recognition technology enables virtual assistants to handle customer queries, while computer vision and image recognition facilitate personalized banking services. AI ethics and data privacy are essential considerations in model development and deployment. Financial inclusion is a priority, with AI-powered solutions offering access to banking services through digital identity verification and open banking. Biometric authentication and blockchain technology ensure data security and anti-money laundering compliance.

Explainable AI (XAI) is crucial for transparency and trust. Digital transformation continues to shape the banking industry, with AI innovation driving customer service, loan origination, financial advisory, and loan origination. Data analytics and predictive analytics enable banks to gain valuable insights and make informed decisions. AI adoption is a critical trend, with ban

For the fiscal year of 2025, mandatory government spending is predicted to sum up to about 4.37 trillion U.S. dollars. It consists primarily of benefit programs such as: social security, Medicare, Medicaid, as well as other programs. Discretionary spending consists of spending controlled by lawmakers through annual appropriation acts. In FY 2025 it is proposed at 1.93 trillion U.S. dollars, and is divided into defense and nondefense spending. Spending for net interest is also listed, which consists of the government's interest payments on debt held by the public, offset by interest income the government receives.

British advertising giant WPP expected to spend *** million U.S. dollars in artificial intelligence (AI) in 2024, while its French competitor Publicis was forecast to dole out *** million on AI. Interpublic Group was forecast to spend ** million.

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Artificial Intelligence Governance Market Size 2025-2029

The artificial intelligence (AI) governance market size is forecast to increase by USD 3,127,734.9 thousand at a CAGR of 64.6% between 2024 and 2029.

The market is experiencing significant growth due to the increasing adoption of AI technologies across various industries. This trend is driven by the ability of AI to enhance business operations, improve decision-making processes, and create new opportunities for innovation. However, the market's growth is not without challenges. One of the most significant obstacles is the lack of universally accepted standards and frameworks for AI governance. In particular, machine learning, a core subset of AI, is transforming sectors like insurance by enabling advanced risk assessment, fraud detection, and personalized customer experiences. As more organizations adopt AI, there is a growing need for clear guidelines on how to manage the ethical, legal, and social implications of these technologies. Another key trend shaping the market is the increasing adoption of enterprise AI by Small and Medium-sized Enterprises (SMEs).
While large corporations have been early adopters of AI, SMEs are now recognizing the potential benefits of these technologies. This trend is expected to drive market growth as SMEs seek to compete with larger competitors and improve operational efficiency. Despite these opportunities, companies must navigate the challenges of implementing AI governance frameworks and ensuring compliance with regulations. Effective management of AI governance will be crucial for organizations seeking to capitalize on the market's potential and mitigate risks associated with the adoption of AI technologies.

What will be the Size of the Artificial Intelligence (AI) Governance Market during the forecast period?

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The market is experiencing significant growth due to increasing demand for ethical and responsible AI implementation. This market encompasses principles, oversight, ethics guidelines, compliance audits, research, community building, transparency frameworks, control, forums, regulation, reliability, bias detection, due diligence, impact analysis, values, data governance, explainable AI, safety, algorithmic fairness, risk assessment, privacy by design, and other related areas. Key market drivers include the growing importance of AI transparency, accountability, and trust, as well as the need for AI to adhere to ethical values and principles. Additionally, the increasing complexity and potential risks associated with AI systems necessitate strong governance frameworks to ensure reliable and unbiased performance.
The AI governance market is expected to continue expanding as organizations seek to mitigate risks, maintain regulatory compliance, and build trust with stakeholders. This market represents a critical component of the broader AI ecosystem, enabling the responsible and ethical deployment of AI technologies across various industries and applications. Ensuring AI reliability requires strong AI control, AI oversight, and adherence to comprehensive AI ethics guidelines. Organizations must align their technologies with established AI principles and AI values to foster trust and accountability. AI tools such as chatbots, predictive analytics, and automated workflows enable SMEs to optimize processes, reduce costs, and make informed decisions based on data. Conducting regular AI impact analysis and AI risk assessment is essential for responsible development, supported by thorough AI due diligence. A strong AI transparency framework and the implementation of explainable AI help address concerns about decision-making processes. AI bias detection and AI compliance audits further ensure fairness and regulatory alignment. Collaboration within the AI governance community and participation in the AI governance forum support the advancement of AI governance research and best practices.

How is this Artificial Intelligence (AI) Governance Industry segmented?

The artificial intelligence (AI) governance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD thousand' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Government and defense
  Healthcare and life sciences
  BFSI
  Retail
  Others


Component

  Solution
  Services


Application

  Model lifecycle management
  Risk and compliance
  Monitoring and auditing
  Ethics and responsible AI


Deployment

  Cloud
  On-premises


Geography

  North America

    US


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Middle East and Africa



  South America

    Brazil

By End-user Insights

The government and defense segment is estimated to witness signif

According to Cognitive Market Research, the global AI Server Market size will be USD 143524.8 million in 2025. It will expand at a compound annual growth rate (CAGR) of 35.20% from 2025 to 2033.

North America held the major market share for more than 40% of the global revenue with a market size of USD 53104.18 million in 2025 and will grow at a compound annual growth rate (CAGR) of 33.0% from 2025 to 2033.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 41622.19 million.
APAC held a market share of around 23% of the global revenue with a market size of USD 34445.95 million in 2025 and will grow at a compound annual growth rate (CAGR) of 37.2% from 2025 to 2033.
South America has a market share of more than 5% of the global revenue with a market size of USD 5453.94 million in 2025 and will grow at a compound annual growth rate (CAGR) of 34.2% from 2025 to 2033.
The Middle East had a market share of around 2% of the global revenue and was estimated at a market size of USD 5740.99 million in 2025. It will grow at a compound annual growth rate (CAGR) of 34.5% from 2025 to 2033.
Africa had a market share of around 1% of the global revenue and was estimated at a market size of USD 3157.55 million in 2025. It will grow at a compound annual growth rate (CAGR) of 34.9% from 2025 to 2033.
Inference server category is the fastest growing segment of the AI Server industry

Market Dynamics of AI Server Market

Key Drivers for AI Server Market

Increasing Demand for High-Performance AI Computing Infrastructure Across Key Sectors

A major driver of the AI server market is the rising demand for advanced computing infrastructure as artificial intelligence becomes central to sectors like healthcare, finance, and autonomous technology. With the growing integration of generative AI and machine learning across industries, there is an urgent need for high-performance servers to support complex AI workloads. This trend is prompting major players such as Dell, HPE, and Lenovo to ramp up investments in AI server solutions. Lenovo, for instance, recently saw a significant boost in revenue—up by 20% in a single quarter—largely due to increased spending on AI infrastructure, helping the company outperform profit expectations and support a broader recovery in the tech sector.

Growing Demand for Cloud-Based AI Services and Its Impact on the AI Server Market

The expansion of cloud-based AI services is a key driver propelling the AI server market forward. As organizations increasingly adopt AI for business intelligence, automation, and customer engagement, cloud platforms offer a scalable and cost-effective solution to deploy these technologies without the need for extensive on-premise infrastructure. Major cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are investing heavily in AI-optimized server hardware to support the growing demand for machine learning and inference capabilities on the cloud. These platforms allow enterprises of all sizes to access powerful AI tools and infrastructure on a pay-as-you-go basis, democratizing the use of advanced AI. This trend is accelerating the deployment of AI servers in hyperscale data centres globally, fueling the growth of the overall market. Moreover, with the increasing integration of AI into cloud-native applications and services, the need for more efficient and high-performance AI servers is only expected to rise.

Restraint Factor for the AI Server Market

High Costs of Investment and Maintenance for AI Server Infrastructure

A key restraint in the AI server market is the high cost of both initial investment and ongoing maintenance of AI-optimized server infrastructure. Deploying AI solutions, including deep learning and large-scale data processing, demands specialized hardware, such as powerful GPUs and high-performance CPUs, which are often costly. Beyond the upfront capital expenditure, there are continuous operational costs related to energy consumption, cooling systems, and software licenses. While large organizations with substantial budgets can manage these expenses, smaller businesses or those with limited resources may find it difficult to justify the investment, hindering the broader adoption of AI server technologies across various sectors. Introduction of the AI Server Market

The AI server market refers to the specialized computing infr...

In 2024, the total value of AI and gen AI spending in Europe was estimated at ***** billion U.S. dollars. The value of investments varied greatly across industries, with the banking sector accounting for the largest value of all investments. The banking sector's spending on AI and gen AI was approximately **** billion U.S. dollars. It was followed by the retail sector, with a spending value of **** billion U.S. dollars. Banking was also the leading industry in terms of spending on a global scale in 2023.

Technology Spending on Core Administration in Healthcare Market Outlook 2032

The global technology spending on core administration in healthcare market size was USD 36.4 Billion in 2023 and is projected to reach USD 53.2 Billion by 2032, expanding at a CAGR of 4.3% during 2024–2032. The market growth is attributed to the rising demand for improved healthcare services across the globe.



Growing demand for improved healthcare services is a significant driver of technology spending on core administration in the healthcare market. This is largely, due to the increasing global population and the rising prevalence of chronic diseases. Consequently, healthcare providers are driven to invest in cutting-edge technologies to optimize administrative procedures, elevate patient care, and boost operational efficiency. This trend is expected to continue, thereby propelling the technology spending in the healthcare market.

Impact of Artificial Intelligence (AI) in Technology Spending on Core Administration in Healthcare Market

Artificial Intelligence has a profound and transformative impact on technology spending on core administration in healthcare market. AI has emerged as a powerful tool in healthcare administration, driving increased technology spending in this market. It is reshaping how administrative tasks are performed, leading to improved efficiency and accuracy. AI-powered systems are being used to automate routine tasks such as patient scheduling, billing, and insurance claims processing, reducing the burden on administrative staff and minimizing human error.



AI is enhancing decision-making in healthcare administration. Predictive analytics, powered by AI, are being used to forecast patient volumes, manage resources effectively, and optimize operational efficiency. This has led to strategic and data-driven decision-making, improving the overall performance of healthcare organizations. Consequently, the adoption of AI in healthcare administration is driving significant growth in technology spending, as healthcare providers invest in AI-enabled tools and systems to modernize their administrative operations and deliver better patient care. For instance,

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IT Spending in Financial Services Market Outlook 2032

The global IT spending in financial services market size was USD 450 Billion in 2023 and is projected to reach USD 691.6 Billion by 2032, expanding at a CAGR of 5.5% during 2024–2032. The market growth is attributed to the need for advanced security measures.



Increasing digitalization and the need for enhanced security measures are expected to propel the market. This investment, aimed at integrating advanced technologies such as artificial intelligence, blockchain, and big data analytics, is transforming the way financial institutions operate. The focus is on improving operational efficiency, enhancing customer experience, and ensuring robust cybersecurity.

Rising regulatory scrutiny in the financial sector is leading to the implementation of stringent data protection and cybersecurity regulations. Bodies such as the Financial Conduct Authority (FCA) and the Securities and Exchange Commission (SEC) have set forth specific rules regarding data handling and security in financial institutions.



These regulations, while ensuring data protection and cybersecurity, drive IT spending as financial institutions strive to comply with these rules. This regulatory environment, and the growing threat of cyber-attacks are likely to positively influence the market dynamics, fostering innovation in the market.

Impact of Artificial Intelligence (AI) in IT Spending in Financial Services Market

Artificial Intelligence (AI) has a significant impact on the IT spending in financial services market. AI's ability to automate routine tasks, enhance customer service, and bolster cybersecurity is making it a critical investment for financial institutions. AI-driven analytics tools enable these institutions to gain deeper insights into customer behavior, drive personalized marketing, and make informed business decisions, thereby improving profitability.



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The U.S. defense market, a significant global player, exhibits robust growth potential. With a 2025 market size of $309.77 billion and a projected Compound Annual Growth Rate (CAGR) of 3.58% from 2025 to 2033, the sector is poised for continued expansion. This growth is fueled by several key drivers, including increasing geopolitical instability, the ongoing modernization of military assets to maintain technological superiority, and significant government investments in advanced defense technologies such as artificial intelligence, cyber warfare capabilities, and unmanned systems. Furthermore, the persistent demand for enhanced cybersecurity measures to protect sensitive data and infrastructure contributes significantly to market growth. While potential restraints such as budgetary constraints and technological obsolescence exist, the strategic importance of defense spending within the U.S. context is expected to mitigate these challenges in the forecast period. The market's segmentation reveals strong performance across production, consumption, import, and export analyses, indicative of a dynamic and interconnected ecosystem. The competitive landscape is dominated by a mix of established defense giants and emerging innovative technology companies. Key players like Lockheed Martin, Boeing, Northrop Grumman, and Raytheon Technologies (RTX Corporation) hold substantial market share, benefiting from their extensive experience and established supply chains. However, smaller, specialized companies focusing on niche areas such as AI and drone technology are increasingly gaining traction. Regional analysis, focusing specifically on the U.S., points to consistent, high demand driven by robust government procurement and the presence of a large, well-established industrial base. Continued technological innovation and adaptation to evolving geopolitical scenarios will be crucial for maintaining the U.S. defense market's competitive edge and its substantial contribution to global defense spending. The market's evolution will be marked by a continuous arms race and technological advancement to counter evolving threats. This comprehensive report provides an in-depth analysis of the U.S. defense market, encompassing a detailed study period from 2019 to 2033, with a base year of 2025 and a forecast period extending to 2033. The report offers invaluable insights into market dynamics, growth drivers, challenges, and future trends, making it an indispensable resource for industry stakeholders, investors, and policymakers alike. Keywords: U.S. defense market, military spending, defense contractors, aerospace and defense, defense technology, weapons systems, national security, market analysis, industry forecast. Key drivers for this market are: Increase in Internet of Things (IoT) and Autonomous Systems, Rise in Demand for Military and Defense Satellite Communication Solutions. Potential restraints include: Cybersecurity Threats to Satellite Communication, Interference in Transmission of Data. Notable trends are: The Air Force Segment to Exhibit the Largest Market Share During the Forecast Period.

The United States federal government budget has allotted around 75 billion dollars toward its 2025 civilian federal agency information technology budget. As leadership and government priorities change, the IT budgets allocated to different departments tend to follow suit. The Department of Energy's IT budget increased significantly by 37 percent compared to the previous year, with 5.5 billion U.S. dollars allocated in FY 2025. Similarly, the IT budget of the Department of Homeland security also increased by 23 percent compared to the previous year, to around 11 billion U.S. dollars for FY 2025. Meanwhile, the Office of Personnel Management saw its IT budget shrink the most among the civilian federal government agencies, decreasing by a staggering 64 percent compared to FY 2024. Since the 2022 federal budget, figures do not include the portion of the budget allocated to the Department of Defense or other classified IT spending. U.S. government budget In the United States, huge shares of government expenditures go towards the Department of Health and Human Services as well as the Social Security Administration. Due in part to the country’s continually increasing budget, the government has run at an annual deficit since 2002, with its 2024 deficit estimated to over be around 1.9 trillion dollars. Cybersecurity budget One of the main facets of the U.S. government IT budget is spending related to cybersecurity. Over 12 billion U.S. dollars have been allocated towards cybersecurity in 2024. The Departments of Homeland Security and Justice have unsurprisingly had the highest cybersecurity budgets across all departments, given the sensitive nature of their work.

The banking industry was the most active sector in terms of investments into AI and gen AI in 2024. The banking industry's spending on AI-centric systems accounted for 15.7 percent of all investments, with total AI funding amount to approximately 7.24 billion U.S. dollars. The retail sector followed, with 9.5 percent of all spending.