A new study by the Future Investment Initiative (FII) Institute and Accenture suggests that the next major phase of global AI investment will move beyond traditional hubs like North America and Europe and toward the Global South.
According to the report, released during FII9 in Riyadh, nearly nine out of ten global investors are planning to channel AI investments into regions such as India, Southeast Asia, and the Middle East within the next two years. This shift signals a growing appetite for innovation outside the world’s established tech centers.
From North to South: A Changing Investment Landscape
Since AI’s rapid ascent in the past decade, most capital and breakthroughs have come from the Global North, home to giants like OpenAI, Google i Microsoft. But the tide is turning.
The study found that 87% of investors intend to increase their AI-related spending in the Global South over the next 12-24 months. This points to a new balance in how the world’s technology ecosystems evolve.
Investors are drawn by several advantages:
Strong talent pools (cited by 75% of respondents)
Lower energy costs for compute (70%)
Improving infrastructure (69%)
Growing domestic demand for AI solutions (67%)
Out of 250 C-suite executives surveyed, representing venture capital, private equity, and corporate investment arms, 70% already have a dedicated Global South team. Another 26% plan to set one up soon.
“AI has the power to unlock unprecedented growth in emerging markets,” said Julie Sweet, Chair and CEO of Accenture. “This research highlights the untapped opportunities waiting to be realized in the Global South.”
The Funding Gap: North Still Dominates
Despite the enthusiasm, the Global South remains underfunded. While more than 23,000 AI startups have emerged across developing regions since 2010, investment flows remain heavily skewed toward the Global North.
In the last three years, AI startups in developed economies raised $108.3 billion, compared to just $12 billion for those in the Global South. Only eight Global South startups have reached unicorn status (valued above $1 billion), versus 305 in the Global North.
The report emphasizes that this funding imbalance limits global innovation potential, even though the Global South is projected to drive one-quarter of worldwide economic growth by 2030.
Regional Hotspots: Where AI Is Taking Off
Investor enthusiasm is highest for India (90%), followed by Southeast Asia (44%), the Middle East (29%), Africa (21%), and Latin America (17%).
Asia-Pacific (APAC) leads the charge, home to 13,500+ AI startups valued at over $16 billion. The region has attracted $136 billion in foreign direct investment. India stands out, boosted by the $1.2 billion IndiaAI Mission and $2.4 billion in AI venture funding in early 2025 alone.
The Middle East, particularly Saudi Arabia and the UAE, is rapidly scaling up AI as part of national strategies. These countries are investing heavily in language-specific, culturally aware models and digital infrastructure.
Latin America is positioning itself as an innovation hub, using AI to tackle local challenges such as renewable energy management and financial inclusion.
Africa’s AI ecosystem, with nearly 2,000 startups, is making strides in fintech and agri-tech. The continent’s leveraging mobile technology to leapfrog older systems.
Building the Foundations for AI Growth
Currently, over 95% of AI startups in the Global South operate at the application layer. This means there’s a massive opportunity for investors to back foundational infrastructure, including data centers, cloud platforms, and high-performance compute.
To fully unleash the region’s AI potential, the report urges investors to:
Align with national AI initiatives and policy frameworks.
Support infrastructure and talent development.
Cultivate trusted local partnerships to ensure sustainable growth.
“We’re at a defining moment,” said Ramez Shehadi, Managing Director at Accenture. “AI isn’t just a technological leap, it’s a chance to reinvent how the world grows. Investing in the Global South means building a more inclusive, responsible, and balanced AI future.”
