AI boom to drive trillion-dollar leap in digital economy by 2026

The global digital economy is forecast to expand at 9.5 per cent in 2026 as rapid advances in artificial intelligence and emerging technologies reshape growth, according to the Digital Cooperation Organisation’s new Digital Economy Trends 2026 report released in Riyadh.

The projected pace is more than three times that of the wider global economy and would take the value of the digital economy to an estimated 28 trillion dollars, representing 22 per cent of global GDP.

The report draws on survey responses from more than 400 policymakers, economists and technology leaders across 26 countries. It identifies 18 trends that are expected to influence economic and social development over the next year.

DCO Secretary General Deemah AlYahya said the findings show that technology is advancing at an unprecedented speed but warned that its benefits must be broadly shared. “The digital economy is reshaping our world with unprecedented speed, and the true test of this new era will be whether its benefits reach everyone,” she said.

“The future of the digital economy will be defined not by the speed of innovation, but by how inclusively it is built.”

Digital economy forecast for 2026

Respondents highlighted strengthening end-to-end cybersecurity and the emergence of ambient intelligence as the trends expected to deliver the greatest positive impact in 2026. Cybersecurity rises to the top amid more sophisticated attacks, growing capability gaps and new risks linked to generative AI and future quantum computing. Ambient intelligence refers to the integration of connected systems and localised AI into everyday environments, a shift that is expected to enrich user experience but also heighten the need for safeguards.

Looking three to five years ahead, the report identifies the convergence of frontier technologies as the most transformative force. Advances in AI are accelerating progress across robotics, spatial computing and biotechnology, widening the scope of experimentation but also underscoring challenges related to skills, infrastructure and governance.

The report outlines several areas where significant economic value could be created. These include up to US$4.14 trillion from immersive hybrid technologies, nearly 4.91 trillion from AI-driven workforce transformation, 3.63 trillion from modernised digital trade and about 3.13 trillion from investment in cybersecurity and resilient digital infrastructure.

Preparedness varies across regions and sectors, although the private sector is viewed as the most ready to respond to fast-moving digital trends. The DCO said the report should be used alongside its Digital Economy Navigator to help countries assess their digital maturity and focus investment where it can deliver the greatest impact.