4 Things Investors Need to Know About AI

4 Things Investors Need to Know About AI

Artificial intelligence (AI) is transforming nearly every part of the global economy, from automating everyday digital tasks to enabling life-saving surgical procedures. As adoption accelerates, investors are asking the same question: where are the biggest opportunities?

This visualization, created in partnership with New York Life Investments, explores four key things investors need to know about AI and how to invest around it.  

1. Who Are the AI Leaders?

Hundreds of AI models have emerged across the globe. However, a smaller group of companies is driving the majority of real-world deployment and innovation. Understanding who leads the AI race helps investors identify the firms best positioned to capture value.

Leading the pack by number of large-scale AI models developed are Google (18 models), Meta (14), and OpenAI (10), the creator of ChatGPT. 

Developing these cutting-edge AI systems requires billions in annual R&D spending, as companies around the world pour capital into the next wave of AI breakthroughs.

2. How Much Is Invested in AI on a Global Scale?

In 2024, global artificial intelligence investment reached $252 billion, reflecting a rebound in enthusiasm after recent market volatility. While this is below the $361 billion peak in 2021, renewed momentum, particularly in the U.S. and Europe, signals AI’s return as a major driver of global innovation. Corporate investment, venture funding, and government spending are converging to accelerate adoption across sectors from healthcare to manufacturing.

Financial resources are only part of the story. AI’s explosive growth also requires enormous amounts of electricity, water, and data center capacity.

3. How Much Power Demand Is AI-Driven?

AI workloads are becoming one of the fastest-growing sources of electricity demand worldwide. Data centers consume vast volumes of energy and water to operate and cool their systems. By 2030, artificial intelligence-related data center requirements could nearly triple, significantly reshaping regional power markets and stressing global infrastructure.

The technology’s data boom is straining power systems. This is creating major investment opportunities in energy, cooling, and data infrastructure.

With capital, innovation, and infrastructure needs rising rapidly, investors are increasingly looking at performance metrics to see where the strongest returns are emerging.

4. How Did Data Center REITs Perform in 2024?

Riding the wave of AI-driven infrastructure demand, data center REITs surged 25.2% in 2024. This sector dramatically outperformed the broader REIT sector’s 4.9% gain. 

As hyperscalers, cloud providers, and artificial intelligence companies expand their compute capacity, these REITs have become essential assets in the digital economy.

Investing to Power the Future

Artificial intelligence is reshaping everything from productivity and innovation to energy grids and global competition. For investors, the key is understanding how the technology aligns with long-term themes such as infrastructure modernization, enterprise digital transformation, and the rise of intelligent automation. Those who position early could benefit from the structural changes AI is driving across industries.

Explore more insights from New York Life Investments