The Global South is Set to Attract a Huge Wave of AI Innovation

AI funding is set to shift toward emerging markets, according to a new Future Investment Initiative (FII) Institute and Accenture study. The study indicates that nine out of ten investors plan to direct capital into AI ventures across Southeast Asia, the Middle East, and India. 

For years, most AI investment has concentrated in Europe and the U.S., home to major players such as OpenAI and Google. Now, momentum appears to be moving southward. The report, unveiled at the FII9 conference in Riyadh, reveals that 87% of surveyed investors intend to boost AI-related funding in developing regions over the next one to two years. 

Analysts suggest that this could begin to balance global technological development, fueling a new wave of innovation beyond traditional power centers. The study points to several factors driving this enthusiasm: a strong pool of skilled workers (75%), low-cost energy for computing needs (70%), solid infrastructure (69%), and growing domestic needs (67%). 

Researchers gathered responses from 250 senior executives representing private equity, venture capital, and corporate investment divisions worldwide. Seventy percent said their firms already have teams dedicated to opportunities in the Global South, while 26 percent plan to create one soon. 

India leads investor interest, with 90% of respondents identifying it as a priority market. Southeast Asia follows at 44%, then the Middle East at 29%, Africa at 21%, and Latin America at 17%. 

Asia-Pacific stands out as the strongest South performer, with more than 13,500 AI startups valued collectively at $16 billion and attracting $136 billion in foreign investment. India leads that growth through national programs such as the $1.2 billion IndiaAI Mission and record venture capital inflows this year. 

Meanwhile, Gulf nations such as the UAE and Saudi Arabia are pushing AI as a cornerstone of national development strategies, while Latin America is deploying AI in energy and fintech projects. Africa, with nearly 2,000 startups, is advancing applications in agriculture and mobile-based finance. 

Despite the optimism, investment remains uneven. Since 2010, over 23,000 AI startups have launched across the Global South, but the majority of funding continues to flow north. Over the past three years, startups in wealthier economies have received roughly $108 billion in deals, compared with only $12 billion for their southern counterparts. Only eight AI companies in the Global South have reached valuations above $1 billion, while the Global North boasts more than 300. 

The study also highlights an investment gap in infrastructure. Approximately 95% of Global South AI startups operate at the application level, leaving significant room for funding in areas such as cloud computing, data centers, and processing power. 

Accenture’s managing director, Ramez Shehadi, noted that the world stands at a pivotal moment. He added that broadening AI investment to the Global South is not only an economic necessity but also a chance to promote equitable and sustainable growth in the industry’s next phase. 

As leading tech enterprises like D-Wave Quantum Inc. (NYSE: QBTS) continue to be at the forefront of technological innovation in the Global North, their innovations are likely to eventually trickle down to the Global South as their utility gains traction around the world. 

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS 

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