Investors and tech leaders all over the world are looking to the Global South for the next big wave of artificial intelligence (AI) growth. This is a big change, as AI investment used to focus mostly on countries like the United States, China, and parts of Europe. Today, places like India, Southeast Asia, and the Middle East are attracting more interest and money from both local and global investors.
Why does this matter now? The Global South is home to nearly half the world’s people. Many of these countries have fast-growing economies, young and tech-savvy populations, and governments eager to build digital skills. These factors are making the region a new favorite for AI projects, research, and new businesses. In the next few years, experts say the Global South will become a major force in shaping how AI is used worldwide.
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Rising AI Investment: The Numbers
About 87% of global investors plan to put more money into AI projects in the Global South over the next two years, according to a recent report. But so far, the region only gets 28% of AI-related foreign direct investment, which is still much less than the Global North. The tide is turning, as new data shows that investments in the Middle East, India, and Southeast Asia are growing fast. The Stanford AI Index 2025 reveals that global private investment in generative AI jumped nearly 19% since 2023, and much of this growth is now happening outside traditional tech hubs.
The PwC AI Jobs Barometer also points out that AI skills bring a wage premium and help countries grow faster. This is especially important for regions with large numbers of young job seekers.
Why the Global South?
There are several reasons why the Global South is getting more attention:
- Youth and Talent: Countries like India and Nigeria have millions of young people learning digital skills and computer science. This huge pool of talent is attracting companies that want to hire locally and grow fast. For example, Kenya and Nigeria have launched AI knowledge centers and coding hubs to help more people enter the field.
- Growing Digital Infrastructure: New data centers, faster internet, and better mobile networks are making it easier to build and test AI tools in these regions. Companies like AWS, Google Cloud, and Microsoft are opening new facilities in Africa and Asia.
- Local Challenges, Local Solutions: The Global South faces unique problems in health, farming, and education. Local startups are using AI to address these issues, such as using smart tools to improve crops or diagnose diseases. This is attracting investors who see both social impact and profits.
Spotlight: Middle East and Southeast Asia
The Middle East, especially the UAE and Saudi Arabia, is becoming a leader in AI investment. The region’s leaders are building “AI factories” and working with big tech companies to train local talent. According to Telecom Review, the Middle East is now seen as a powerhouse for AI productivity. India and Southeast Asia are also drawing attention for their fast-growing tech sectors and strong government support for startups.
For example, India’s National AI Portal lists hundreds of AI projects in fields like healthcare and smart cities. In Southeast Asia, countries like Singapore and Indonesia are creating special zones for tech companies and offering tax breaks to attract foreign investment (Tech in Asia).
Public-Private Partnerships Fuel Growth
Partnerships between governments, local startups, and global tech giants are a big reason for this AI boom. The U.S.-India Roadmap on Accelerating AI Infrastructure is one example, with millions of dollars going toward new data centers and training programs. In Africa, the Nairobi-based Centre of Competence for Digital and Artificial Intelligence Skilling is working with the United Nations and Microsoft to boost skills and create jobs.
These partnerships also help countries set up strong rules for using AI safely and fairly. The AIFOD forum has called for more training, knowledge sharing, and ethical rules to make sure everyone benefits from AI.
Challenges and Gaps
There are still big hurdles ahead. The funding gap is real: while the Global South is catching up, most AI unicorns and top research centers are still in the Global North (Zawya). Some experts warn about risks for workers and stress the need for better job protections and mental health support (Brookings).
Access to funding, advanced computer chips, and cloud resources remains a struggle for many smaller startups. There is also a need for more homegrown research and leadership so that AI tools fit local languages and cultures.
What’s Next?
Experts agree that the next few years will bring even more AI investment to the Global South. As more young people learn digital skills and governments support research, the region has a real chance to shape the future of AI. Public and private groups must keep working together to close gaps in funding, skills, and rules.
The world is watching to see if the Global South can turn this wave of investment into real benefits—new jobs, better health, smarter cities, and stronger economies. If it succeeds, the whole world will feel the impact.
