According to a recent report from Swiss investment bank UBS, the global investment in artificial intelligence (AI) is expected to rise sharply by 60% in 2025, reaching approximately $180 billion, This growth reflects a major shift, as AI adoption expands beyond traditional tech giants like Microsoft, Amazon, Alphabet, and Meta.
UBS highlights a decline in Big Tech’s dominance as sectors such as healthcare, finance, telecommunications, and manufacturing increasingly embrace AI to boost efficiency and drive innovation. The surge, from $113 billion in 2024, signals the growing mainstream integration of AI across diverse industries.
Broadening AI Investment Beyond Silicon Valley
Artificial Intelligence (AI) is entering a new phase of widespread adoption, no longer controlled by a few tech giants. A recent UBS analysis projects global AI spending will rise to $360 billion in 2025, a 60% increase from the previous year. This growth is expected to continue in 2026, with spending possibly reaching $480 billion, a further 33% rise.
In the past, major tech firms like Microsoft, Amazon, Alphabet, and Meta led most AI funding. However, their influence is expected to fall from 58% in 2025 to 52% in 2026. This shift signals a broader distribution of AI development across a more diverse range of market players.
Additionally, China is rapidly solidifying its position in the global AI landscape, largely through low-cost models such as DeepSeek and supportive government policies. This growth is fueling adoption within consumer sectors such as e-commerce, advertising, and social media.
According to UBS, specialist Neocloud providers are expected to capture about 25% of AI spending by 2025, reducing the dominance of the traditional “Big 4” tech giants. The remaining share will go to other hyperscalers and enterprise or sovereign cloud players like Oracle and SoftBank.
This shift marks a broader democratization of AI. Open-source tools, cloud services, and affordable infrastructure have leveled the playing field. Companies across Asia, Europe, and emerging markets are now investing in AI to boost consumer engagement, automate tasks, and make smarter data-driven decisions.
Moreover, smaller and medium-sized businesses are joining the race. They are getting significant returns on their AI investments. UBS analysts underline that this is a “broad-based” evolution where AI is no longer limited to Silicon Valley tech giants.
What the AI Spending Boom Means for the Global Economy
The predicted $180 billion in AI investment for 2025 is likely to result in considerable global productivity benefits. According to reports, industries such as retail, logistics, and public services are increasingly using AI for applications like as demand forecasting, fraud detection, and predictive maintenance.
UBS also warned that, while the growth forecast is positive, certain capital inflows may be speculative. There is a risk that overinvestment, particularly in unproven AI applications, may result in unequal results if not supported by a solid strategy and governance.
Nonetheless, the research emphasises AI’s critical importance in the digital economy. With enterprise adoption accelerating, job functions expanding, and infrastructure scaling globally, AI is no longer an emerging technology, but rather a core one.
About The Author
