FII9 2025: India Emerging As Major Hub For AI Investment Destination, Says Report

The Future Investment Initiative (FII) Institute recently released its latest report, 'Rebalancing Intelligence: How the Next Wave of AI Investment Is Set to Flow South,' during the launch of the 9th edition of its flagship conference FII9 in Riyadh. Developed in partnership with Accenture as part of the AI Inclusive Initiative, the study shows how the Global South -- including regions across Latin America, Africa, the Middle East, and developing parts of Asia-Pacific is fast emerging as the next hub for artificial intelligence (AI) innovation and investment.The four-day summit, running from October 27 to 30 under the theme 'The Key to Prosperity: Unlocking New Frontiers of Growth,' explores how AI and advanced technologies can drive inclusive

global progress.According to the report, while the Global North attracted $108.3 billion in AI funding over the past three years, the Global South received just $12.1 billion, despite being home to more than 23,000 AI startups. Encouragingly, 87 per cent of global investors now plan to increase their AI investments in the Global South within the next two years -- a shift that could unlock $10.3 trillion in new economic value by 2038.The report calls for a rebalancing of global AI investments, urging stakeholders to build local ecosystems, support regional innovation, and align with government priorities to foster inclusive and sustainable growth.

Why The Global South Matters

The report identifies several factors driving this shift. Many countries in the Global South offer competitive AI talent, affordable energy, and growing domestic demand, making them ideal for new AI ventures. In these regions, startups are not just adopting AI tools -- they are building AI solutions from the ground up to solve local challenges in areas like healthcare, education, and agriculture."We found that momentum is building across the Global South with a range of initiatives fueling innovation and a surge of investment activities," the report said.ALSO READ: FII9 2025: What Is Global Cities Resilience Index? Here’s How Delhi, Mumbai Made The Cut As per the data, nearly 90 per cent of global investors plan to increase their Al investments in the region within the next 12-24 months. India, Southeast Asia and the Middle East are drawing the greatest interest. "We also found that 70 per cent of investment firms have dedicated teams focused on these markets," it added.According to the report, India is setting the pace, with its $1.2 billion IndiaAl Mission, more than 13 million developers and $2.4 billion in venture funding in Ql 2025 alone, while Malaysia and Vietnam are emerging Al forces.

What Investors Should Focus On

The report lists five main areas investors should focus on to make the most of the AI opportunity in the Global South.- First, they should work on building strong and trusted local ecosystems by partnering with local startups, governments, and institutions.- Second, investors need to look for AI opportunities that fit regional needs — for example, using AI in agriculture, healthcare, or education, depending on the country.- Third, it’s important to align investments with government policies and national AI strategies, as many countries are now creating clear plans to support AI growth.- Fourth, investors should use data and research to understand local markets better, ensuring their strategies are practical and tailored to each region.- Finally, the report stresses the need to promote inclusive growth, meaning investments should benefit people and businesses alike, creating more jobs and opportunities.If investors follow these steps, the Global South could soon become a major player in the global AI economy, driving innovation and shaping a fairer, more connected future.As AI transforms economies worldwide, the FII Institute says this new investment wave could help the Global South become a powerful force in the global AI economy, creating jobs, driving innovation and ensuring that the benefits of technology are shared more equally across nations.