The new investment horizon

In 2023, global investment in the energy transition reached a new record of $1.8 trillion, marking a 17% increase from the previous year. However, we still need approximately $4.8 trillion in annual investments to achieve our targets. Similarly, global private investments in AI between 2013 and 2023 totaled nearly $1.3 trillion, and investments in AI are projected to continue increasing year-over-year as the technologies mature and the business case for AI becomes clearer. These substantial financial commitments reflect the transformative potential these fields hold. Both the energy transition and AI are poised to revolutionise sectors ranging from heavy industries to food, healthcare, and finance, and could exacerbate existing inequalities in access and sustainable growth. What are the transformational investments being made in these two sectors, and how are public and private investors adapting their investment strategies?