AI Report Shows $1 Trillion Growth in Global Digital Economy by 2026

The global digital economy is forecast to grow 9.5% in 2026, reaching an estimated $28 trillion — equivalent to 22% of global GDP — according to the Digital Cooperation Organisation’s ‘Digital Economy Trends 2026’ report, released in Riyadh. The projection positions digital activity as one of the largest and fastest-growing components of the global economy.

The report highlights artificial intelligence as a central force behind this expansion, pointing to rapid adoption across sectors as businesses embed AI into products, operations and decision-making systems. Advances in machine learning, generative AI and automation are cited as key contributors to productivity gains and new value creation.

Industry analysis referenced alongside the DCO findings suggests AI is increasingly shifting from an experimental technology to core digital infrastructure. Startups building AI-native platforms are expected to scale more efficiently, while established companies are using AI to optimise costs, enhance customer experiences and unlock new revenue streams.

For startup ecosystems, the report’s outlook reinforces investor focus on AI-driven ventures, particularly in enterprise software, fintech, healthtech, logistics and data infrastructure. The acceleration of AI adoption is also reshaping competition, favouring companies that integrate AI at the foundation of their business models rather than as an add-on.

The DCO report further notes that emerging markets — including those in the Middle East — are well positioned to capture a growing share of digital-economy growth. Government-led digital strategies, cloud-infrastructure expansion and maturing startup ecosystems are cited as key enablers.

While the forecast underscores strong growth momentum, the report also flags challenges related to regulation, skills development and responsible AI deployment. Addressing these issues, it argues, will be critical to sustaining long-term growth as digital activity accounts for an increasing share of global economic output.