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Global FDI Concentration (Typical Developing Market Distribution)
Illustration of capital concentration in developing economies.
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AI investment boom risks widening global development divide
Default image copyright and description © Shutterstock/Aerovista Luchtfotografie | A data centre in Groningen, the Kingdom of the Netherlands. Artificial intelligence and other strategic technologies are reshaping global investment, concentrating capital in fewer sectors and fewer countries while raising the risk that many developing economies are left behind.That warning framed the opening of UN Trade and Development’s (UNCTAD) 12th Multi-year Expert Meeting on Investment, Innovation and Entrepreneurship.Rapid growth in AI and digital infrastructure investment is now intertwined with industrial policy and national security priorities, influencing where companies invest and how global production is organized.Against this backdrop, global investment is becoming more volatile and harder to predict.Foreign direct investment (FDI) flows fell by 11% in 2024 before rebounding by 5% in 2025, reflecting the impact of geopolitical tensions and economic uncertainty. But beyond short-term swings, deeper structural shifts are becoming clearer.“Investment is a bet on the future, but that bet is becoming harder to make – and more uneven in its outcomes,” said Pedro Manuel Moreno, Acting Secretary General of UNCTAD.Investment concentrates in strategic sectors – and a few countriesCapital is increasingly clustering in a narrow set of industries – notably artificial intelligence, clean energy, semiconductors and critical minerals – where competition, policy incentives and security concerns are strongest.At the same time, investment is becoming more geographically concentrated. Around 75% of FDI to developing economies now flows to just ten countries (including large economies such as China, Brazil, Mexico, Indonesia and India), leaving most developing countries – and nearly all least developed countries – struggling to attract capital.For many economies, the implications are immediate. FDI remains a key source of finance, jobs, technology transfer and integration into global value chains. When investment slows, concentrates or shifts elsewhere, development opportunities are lost.A more fragmented investment landscapeGeopolitical tensions, strategic competition and supply chain restructuring are redrawing the global investment map. Firms are increasingly directing capital toward geopolitically aligned and regionally integrated markets, while governments rely more on industrial policies and screening mechanisms to manage risk.For countries well integrated into regional netw...
Global Perspectives: Addressing the most essential questions around AI ...
Alternatively, watch a video of the recording: May 6, 2026 28 minute listen Key takeaways: Despite market skepticism about the longevity of the AI theme, we have seen step-function improvements in AI models, with new models evolving rapidly and continually leapfrogging those of competitors. This ongoing advancement is a key driver of aggressive capital expenditure (CapEx) by companies, the benefits of which are just beginning to emerge. Compared to previous technology cycles, AI is diffusing across industries much more rapidly; as a result, we believe the impact it will have on economies, society, and global security will be much more profound. IMPORTANT INFORMATION Artificial intelligence (“AI”) focused companies, including those that develop or utilize AI technologies, may face rapid product obsolescence, intense competition, and increased regulatory scrutiny. These companies often rely heavily on intellectual property, invest significantly in research and development, and depend on maintaining and growing consumer demand. Their securities may be more volatile than those of companies offering more established technologies and may be affected by risks tied to the use of AI in business operations, including legal liability or reputational harm. Technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic conditions. A concentrated investment in a single industry could be more volatile than the performance of less concentrated investments and the market as a whole. These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. The information in this article does not qualify as an investment recommendation.There is no guarantee that past trends will continue, or forecasts will be realised.Marketing Communication. Glossary Important information ...
A blueprint for using AI to strengthen democracy
Opinion A blueprint for using AI to strengthen democracy AI is changing what it means to be a democratic citizen. Here's how we can harness it for good.
Your Questions Answered: What Is AI-Readiness and How Will It Reshape ...
Generative AI tools are changing how people learn and work across Asia and the Pacific. By creating content and solving problems from simple prompts, these tools can help workers do more in less time and offer new ways for businesses to grow. Yet the scale of their impact will depend less on technological promise than on how effectively countries close widening gaps in AI readiness—gaps that ...
