LLM adoption rises as governance lags in 2026

LLM adoption has become mainstream in business operations in 2026. 88% of organizations use AI in at least one business function, while 70% use generative AI specifically in at least one function. Worldwide AI spending is on track to reach $2.59 trillion in 2026, and the global LLM market is projected to grow from $10.57 billion in 2026 to nearly $150 billion by 2035.

Competition among model providers is becoming less concentrated. ChatGPT’s market share has fallen below 50% for the first time, though it still leads with over 1.1 billion monthly users. Google’s Gemini has grown to 662 million monthly users, Anthropic’s Claude has reached 245 million, and Anthropic now commands 40% of enterprise LLM API spend while OpenAI’s enterprise share has fallen from 50% in 2023 to 27%.

Trust and governance are not keeping pace with deployment. 74% of organizations cite inaccuracy as their top AI risk, up 14 percentage points in a single year and ahead of cybersecurity (72%). Hallucination rates across 26 leading foundation models range from 22% to 94%, while agentic AI adoption is accelerating from 23% of companies using it at least moderately today to 74% expecting to within two years, despite only 21% reporting a mature governance model for autonomous agents.