Study suggests that spending on Specialized Domain-Specific Models Expected to Cross $1.1 Billion, Marking a Shift Toward Industry-Focused AI
Global end-user spending on generative AI (GenAI) models is set to reach $14.2 billion in 2025, up from $5.7 billion in 2024—a year-on-year growth of over 148%, according to a new forecast by Gartner, Inc. The rapid surge is being driven by a growing enterprise focus on AI-enabled capabilities that are embedded in everyday business operations.
While foundation GenAI models, such as large language models (LLMs), continue to dominate with projected spending of $13.1 billion in 2025, specialized GenAI models—those fine-tuned for specific industries or business functions—are gaining significant traction. Spending on these domain-specific models is expected to grow more than threefold, reaching $1.1 billion in 2025 from just $302 million last year.
“Organizations are increasingly turning to domain-specific GenAI models because they deliver greater relevance, performance, and cost-efficiency in targeted use cases,” said Arunasree Cheparthi, Senior Principal Research Analyst at Gartner. “While foundation models will continue to be the largest investment area, the momentum is clearly shifting toward vertical AI solutions.”
According to Gartner, the impact of specialized GenAI models will extend well beyond direct spending. By 2027, more than 50% of all GenAI models deployed by enterprises will be domain-specific—a dramatic rise from just 1% in 2024.
This trend underscores a broader shift in enterprise AI strategies, with organizations prioritizing models that align closely with industry nuances and operational needs.
The full forecast is detailed in Gartner’s latest report, Forecast: Generative AI Models, Worldwide, 2023–2029 (2Q25 Update). Gartner also offers guidance for technology leaders on how to identify high-impact GenAI use cases in its complimentary ebook Top GenAI Opportunities for Tech Products.