Big Tech is pouring $650 billion into AI — and it’s about to affect almost everything you use

Phone sitting on laptop displaying big tech company logos — (Image credit: NurPhoto / Getty Images)

You may have noticed that AI tools are getting smarter and more integrated into your daily life. It's true, AI is getting harder to ignore, that's because the world’s biggest tech companies are expected to spend roughly $650 billion on artificial intelligence in 2026.

That money is fueling faster chips, massive data centers and smarter software. You'll notice more AI showing up in the apps you use, the devices in your pocket and the way you get work done every day.

In other words, whether you like it or not, AI is about to be everywhere.

$650 billion is bigger than…

Pile of money — (Image credit: Shutterstock)

the entire economies of several developed countries, exceeding the annual GDP of nations like Belgium, Sweden and Thailand
the cost of sending humans to the moon
the combined yearly revenue of Hollywood + music + video games

So where is all this money going? The investment means more computing power and better training systems, which translates to faster responses, improved reasoning and accuracy, fewer hallucinations and better handling of long documents and complex tasks for us.

And while we can't see big tech busy behind the scenes building the infrastructure, what we will notice with when AI stops giving vague answers and starts feeling much more human and seamless.

AI will become invisible inside the apps you already use, which means you can expect more auto-summaries, smart replies, auto-editing tools and contextual assistance that feel built-in.

We're already seeing a large share of AI spending flowing into hardware and on-device processing, including:

cameras that auto-enhance photos in real time
voice assistants that understand context better
real-time language translation
AI features that work even without internet

Search is transforming how it answers

Google AI on phone with laptop in background — (Image credit: Shutterstock)

AI investment is accelerating the shift from traditional search results to direct answers. This is evident with AI browsers, but also in summarized results, comparisons, instructions and instant explanations without ever going to a webpage.

We probably won't see a replaced web, but we will see a difference in how we navigate it. We’re moving into what many experts call the internet’s new “answer layer.” Instead of sending you to a list of links, tools like Google AI Overviews, ChatGPT search features and Perplexity AI increasingly deliver a complete response right on the page.

For everyday tasks, that’s undeniably convenient. But when questions get more nuanced, the speed comes with tradeoffs. When AI condenses multiple sources into a single summary, you often lose:

context explaining why something is recommended
transparency into how it was tested or who reported it
the ability to evaluate credibility on your own
the result is a faster internet — but also a thinner one.

The cost of AI

Artificial intelligence "AI" and brain glowing next to a smartphone screen — (Image credit: Tom's Guide/Shutterstock)

Clearly, AI infrastructure is expensive. Running advanced models requires massive computing resources and energy.

The spending race is driven by competition to control the next computing platform — one where AI becomes the interface between humans and technology.

This translates smarter free tools and more compelling paid upgrades, creating a split:

Premium tiers: More powerful AI assistants, advanced reasoning and automation features.
Free tools: Better baseline AI than ever before, supported by ads, partnerships or ecosystem lock-in.

Work will change faster than job titles

Woman sits at a desk in a brightly lit room, looking at a computer screen. — (Image credit: Getty Images)

The biggest shift won’t be a wave of brand-new roles. It will be a quiet rewrite of what’s expected from the roles people already have.

AI is rapidly becoming the invisible layer beneath everyday work, handling the time-consuming tasks that used to fill entire afternoons. Instead of replacing workers outright, it is reshaping how quickly work gets done — and how much output is expected in the same amount of time.

AI is increasingly taking on:

first drafts of emails, reports and presentations
research summaries and background briefs
data cleanup, categorization and organization
scheduling, planning and task prioritization
meeting notes and action items
repetitive workflows and administrative tasks

This shift might create a wider widening productivity gap. Workers who learn how to delegate routine work to AI can move faster, think more strategically and focus on higher-value decisions. Those who avoid these tools may find themselves spending hours on tasks others complete in minutes.

In other words, the future of work may not belong to the people who work the hardest — but to those who work alongside AI the smartest.

The bottom line

We aren't going to see $650 billion worth of servers or data centers being built, but we will see the effects everywhere: tools that think ahead, answers that arrive instantly, devices that anticipate what you need and workplaces that expect more in less time.

This surge of investment is a rewiring of the digital world as we know it as AI is built into everything we use. Artificial intelligence isn’t a feature anymore; it’s becoming the operating system of modern life.

Follow Tom's Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds.

More from Tom's Guide

TOPICS

Amanda Caswell is an award-winning journalist, bestselling YA author, and one of today’s leading voices in AI and technology. A celebrated contributor to various news outlets, her sharp insights and relatable storytelling have earned her a loyal readership. Amanda’s work has been recognized with prestigious honors, including outstanding contribution to media.

Known for her ability to bring clarity to even the most complex topics, Amanda seamlessly blends innovation and creativity, inspiring readers to embrace the power of AI and emerging technologies. As a certified prompt engineer, she continues to push the boundaries of how humans and AI can work together.

Beyond her journalism career, Amanda is a long-distance runner and mom of three. She lives in New Jersey.

You must confirm your public display name before commenting

Please logout and then login again, you will then be prompted to enter your display name.