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Advances in AI are behind the strong medium-term growth outlook for France's IT market. In 2025 and 2026 the AI-optimised hardware investment trend will be a positive factor as co-location and public cloud companies spend heavily on servers and data centre networking equipment. As the forecast period progresses, there will be an increasing impact on the software and services side as more AI-powered solutions hit the market. Another positive factor is the role of AI in generating higher levels of software developer productivity and the potential for more capacity and lower costs on large IT integration projects. This has the potential to accelerate digital transformation in France, which could not only benefit the IT market but also lead to higher levels of economic productivity as ageing legacy systems are replaced. There are downside economic and security risks, but the strategic nature and long time horizons of IT investments will make the sector relatively resilient to headwinds.