A New Economy is Emerging, and AI is Driving the $7.6 Trillion Shift

GENEVA – A landmark report released earlier this year by the World Intellectual Property Organization (WIPO) confirms what many in the tech and financial sectors have been witnessing firsthand: we are in the midst of a profound economic transformation, with investment in artificial intelligence and other intangible assets now vastly outpacing traditional industrial spending. As we cross the midpoint of 2025, the report's findings are more relevant than ever, providing a crucial framework for understanding today's market dynamics.

The WIPO report revealed that in 2024, global investment in intangible assets—such as software, data, patents, and AI—rocketed to $7.6 trillion. This represents a growth rate three times faster than that of physical assets like machinery and buildings, signaling a resilient and fundamental pivot in what businesses value.

"We're witnessing a fundamental shift in how economies grow and compete," WIPO Director General Daren Tang stated in the report. "While businesses have slowed down investing in factories and equipment during uncertain times, they're doubling down on intangible assets – IP, AI, data, software, know-how and others."

This isn't just a fleeting trend; it's the new economic bedrock. The data shows that even during recent economic crises, intangible investment has maintained a steady upward march, growing at a compound annual rate of 4% since 2008, while tangible investment has limped along at just 1%.

Global Leaders and a New AI-Fueled Investment Wave

The United States currently leads the pack in sheer volume, investing nearly twice as much as the next four countries (France, Germany, Japan, and the UK) combined. However, when viewed as a share of the economy, Sweden emerges as the most intangible-asset-intensive nation. In a notable sign of shifting global dynamics, India recorded the fastest growth in this sector between 2011 and 2022.

The engine behind this tectonic shift is undoubtedly the AI boom. The report identifies two distinct waves of investment it's creating:

Capacity Installation: The initial, ongoing phase focused on building the foundational infrastructure—chips, data centers, and computing power.

Structural Transformation: The next, more profound phase where businesses are now deeply integrating AI, forcing them to overhaul processes and retrain their entire workforce.

"People think that we are already in the middle of the AI boom, but we are actually just at the beginning," noted Sacha Wunsch-Vincent, a WIPO economist and co-author of the report.

For policymakers, business leaders, and investors in 2025, the message is clear: the wealth and growth of nations are now inextricably linked to their ability to foster, protect, and capitalize on intellectual property and digital innovation. The countries and companies that understand this new reality aren't just surviving; they are building the future.