AI Investment Boom Reshapes Global Capital Flows, UN Warns

July 12, 2026 – Global foreign direct investment increased in 2025, but the most of the new capital flowed into artificial intelligence, digital infrastructure, and other strategic industries, raising concerns that many developing economies could struggle to attract future investment.

According to the United Nations Conference on Trade and Development, global FDI rose 6% to $1.6 trillion in 2025, ending two consecutive years of decline. However, the recovery remained uneven, with developed economies benefiting far more than developing markets.

AI Becomes a Major Investment Driver

United Nations Conference on Trade and Development said investment is becoming increasingly concentrated in strategic sectors, particularly artificial intelligence, semiconductors, clean energy, and digital infrastructure.

The value of greenfield investment projects in these sectors has expanded rapidly over recent years as governments and companies prioritize technological competitiveness, supply chain resilience, and national security.

This shift has encouraged multinational companies to direct more capital toward countries with advanced digital infrastructure and supportive industrial policies.

Developing Economies Face Growing Competition

While overall investment increased globally, many developing economies captured only a small share of the new projects.

United Nations Conference on Trade and Development warned that investment is becoming more concentrated across a limited number of countries and industries, reducing opportunities for economies that lack advanced technology ecosystems, reliable infrastructure, or strong investment incentives.

The organization noted that attracting investment increasingly depends not only on low production costs but also on access to skilled talents, digital capabilities, and resilient supply chains.

What comes next?

The outlook for global investment remains uncertain as geopolitical tensions, trade policies, and financing conditions continue to influence business decisions.

United Nations Conference on Trade and Development expects competition for AI-related investment to intensify in the coming years, making innovation, infrastructure development, and workforce skills increasingly important factors in attracting long-term foreign investment.