AI NOW ATTRACTS MORE THAN HALF OF GLOBAL INVESTMENT: IT ACCOUNTS FOR 61% OF GLOBAL VENTURE CAPITAL IN 2025, UP FROM 30% IN 2022
The US and Canada account for 65% of global startup investment, while Europe is accelerating its commitment to AI with a focus on healthcare and defense.
The implementation of AI is creating a gap within companies between its theoretical potential and its actual deployment: 88% of companies claim to use this technology, although only 22% of employees actively use it for support functions such as IT, HR, or customer service.
The authors of the report shared these findings during the presentation of South Summit Madrid 2026, the event co-organized by IE University, which will position Madrid as the global capital of entrepreneurship and innovation from June 3 to 5.
The UK leads AI funding attraction in Europe, followed by France, Germany, Switzerland, and Spain.
Madrid, May 11, 2026 - Artificial Intelligence has established itself as the main driver of global technology investment and now accounts for 61% of global venture capital in 2025, more than double its share in 2022, when it represented 30% of the total. This is according to the report “The Real Impact of Artificial Intelligence on the Entrepreneurial Ecosystem,” prepared by South Summit and PwC and presented today during the official launch of South Summit Madrid 2026, the international innovation and entrepreneurship gathering co-organized by IE University that will bring together startups, investors, and technology leaders from around the world in Madrid from June 3 to 5.
The rise of AI is profoundly transforming global investment dynamics and consolidating a new era for the international entrepreneurial ecosystem. In 2025, global startup investment reached $441 billion, a 26% increase compared to the previous year, mainly driven by the growth of generative AI and mega-rounds led by companies such as OpenAI, Anthropic, and Waymo.
The US and Canada continue to lead global investment, accounting for two-thirds of the total.
The concentration of capital around AI is also reshaping investment criteria and market valuations. Startups integrating Artificial Intelligence achieve valuations 38% higher than traditional companies, while investors are becoming increasingly selective and prioritizing solid, scalable, and profitable business models.
North America continues to clearly dominate the global startup investment market. The United States and Canada increased their investment volume by 42% in 2025, reaching $289.3 billion and accounting for nearly 65% of global venture capital. Europe also maintained positive momentum, with growth of 16% up to $64 billion, while Asia recorded a 5% decline.
Europe intensifies its race toward AI
At the same time, Europe has intensified its efforts to gain competitiveness in Artificial Intelligence and strengthen its technological sovereignty. Between 2020 and 2025, the continent accumulated €21.1 billion in AI investment, reaching an annual volume of €4.9 billion in 2025. European investment is particularly concentrated in two strategic sectors: healthcare, with €4.7 billion accumulated, and defense, with €4.6 billion.
Despite Europe’s growth, the report warns that the gap with the United States remains significant both in terms of investment volume and the ability to scale technological projects. In this context, Artificial Intelligence is positioned as a key tool to boost productivity, industrial competitiveness, and European technological autonomy.
High business adoption, but still limited usage
The report also highlights a growing gap between the theoretical potential of AI and its actual implementation within organizations. Although 88% of companies claim to use this technology in some capacity, only 22% of employees actively use AI tools in their daily work, particularly in support areas such as IT, human resources, or customer service. However, South Summit is concerned about the still existing gap between Europe and the US in terms of investment volume, so it is necessary to continue improving not only the volume of financing but also the channelling of investment towards innovative projects in order to ensure that the growth and scaling of the project takes place in Europe.
Spain positions itself as the fifth European country in attracting AI funding
Within this international context, Spain is consolidating its position as one of Europe’s most relevant emerging ecosystems and now ranks as the fifth European country in attracting Artificial Intelligence funding, alongside the UK, Germany, France, and Switzerland. The Spanish ecosystem currently includes 392 AI startups and has attracted €1.6 billion in cumulative investment between 2020 and 2025.
Although Spain still remains behind the leading European hubs — the UK has accumulated nearly €18 billion in AI investment and Germany exceeds €8 billion — the country continues to strengthen its position thanks to specialization in sectors such as cybersecurity, HealthTech, FinTech, and RegTech, as well as public support stemming from the National AI Strategy and the Recovery, Transformation, and Resilience Plan.
Overall, the Spanish entrepreneurial ecosystem remained resilient in 2025. Startup investment stabilized above €3.1 billion, with a moderate 3% decline compared to the previous year, while the number of deals grew by 11%, reflecting a more dynamic market, albeit with smaller average funding rounds.
About South Summit
South Summit is the global platform that brings together all the actors in the innovation and entrepreneurship ecosystem to promote the development of business opportunities among all of them. Its main meeting is South Summit Madrid, co-organized by IE University, which has seen more than 42,500 startups over the course of its fourteen previous editions, while the Startup Competition has produced more than 1,500 finalist startups, with a survival rate of 85% and more than 20,500 million dollars in investment raised.
After passing through Mexico, Colombia, Peru, Chile and Argentina, South Summit held its fourth edition in Brazil, also co-organized by IE University, in April 2025. This latest edition brought together more than 23,000 attendees from 62 different countries, including more than 3,000 startups, 800 speakers, and 900 investors with an investment portfolio valued at 215,000 million.
For more information: https://www.southsummit.io/e/madrid/