Purpose To understand signaling pathways that shape inflamed tissue and predispose to cancer is critical for effective prevention and therapy of chronic inflammatory diseases. We have explored PI3K activity in human inflammatory bowel diseases (IBD) and mouse colitis models. Experimental Design We performed immunostaining of phosphorylated AKT (pAKT) and unbiased high throughput image acquisition and quantitative analysis of samples of non-inflamed normal colon, colitis, dysplasia, and colorectal cancer (CRC). Mechanistic insights were gained from ex vivo studies of cell interactions, the Piroxicam / IL-10−/− mouse model of progressive colitis, and use of the PI3K inhibitor LY294002. Results Progressive increase in densities of pAKT-positive tumor-associated macrophages (TAMs) and increase in densities of mast cells (MCs) in the colonic submucosa were noted with colitis and progression to dysplasia and cancer. MCs recruited macrophages in ex vivo migration assays, and both MCs and TAMs promoted invasion of cancer cells. Pre-treatment of MCs with LY294002 blocked recruitment of TAMs. LY294002 inhibited MC and TAM-mediated tumor invasion, and in mice, blocked stromal PI3K, colitis, and cancer. Conclusion The PI3K / AKT pathway is active in cells infiltrating inflamed human colon tissue. This pathway sustains the recruitment of inflammatory cells through a positive feed back loop. The PI3K / AKT pathway is essential for tumor invasion and the malignant features of the Piroxicam / IL-10−/− mouse model. LY294002 targets the PI3K pathway and hinders progressive colitis. These findings indicate that colitis and progression to cancer are dependent on stromal PI3K and sensitive to treatment with LY294002.