Artificial Intelligence Q1 2026 Global Report – Hot topics, deal trends, and market outlook | Ropes & Gray LLP

Key Takeaways from AI Developments

AI’s Economic Impact: AI contributions are substantial, driving nearly 60% of the U.S. GDP growth in Q4 2025 and projected to account for up to 15% of global GDP by 2035.
Investment Trends:
- AI investment is significant, with Global CapEx on data centers expected to reach $2.9 trillion by 2028.
- Amazon, Alphabet, and Meta have committed to substantial CapEx in AI infrastructure, leading capital to flow deeper into the AI value chain.
Market Dynamics:
- AI tailwinds are strong but face structural headwinds, including long build-out waits and national security/FDI scrutiny.
- Governance for autonomous agents remains underdeveloped.
Dealmaking Insights:
- Venture capital deal value surged, driven by fewer but larger rounds, with AI capturing 79% of VC dollars in Q1 2026.
- Private capital focuses on AI infrastructure, platform-scale data centers, and mature AI-enabled buyouts.
- Strategic M&A is increasing with transformative deals aimed at securing AI technologies, workflows, and data.
Operationalization of AI:
- Agentic AI and enterprise automation are emerging as key growth opportunities for executing workflows.
- Private capital-driven companies lead in AI adoption, emphasizing efficient integration into business operations.
Market Outlook:
- Efficiency and cost-effective deployment become critical as AI matures, shifting focus from model quality to economic advantages.
- Strategic M&A and private equity are expected to remain active, with geopolitics shaping deal considerations for secure infrastructure and data sovereignty.

Sources: Amazon, Alphabet, Barron’s, Deloitte, JLL, McKinsey, Meta, Morgan Stanley, PitchBook, PwC, Ramp, Accordion, Anthropic, BASF, Cisco, Databricks, EY, Novo Nordisk, N26, OpenAI, Ramp