The capital wave behind artificial intelligence
Artificial intelligence has become the defining growth engine of the 2020s. Total private AI investment in the U.S. reached $68 billion in 2024, accounting for more than half of all global AI spending. Cloud infrastructure, semiconductor capacity, and enterprise adoption are driving a surge in productivity optimism reminiscent of the 1990s internet boom.
Table 1. U.S. AI-Related Investment
| Year | Total ($ B) | % of Total Venture Funding | Public–Private Infrastructure Spend ($ B) |
|---|---|---|---|
| 2022 | 42 | 36 | 9 |
| 2023 | 55 | 44 | 13 |
| 2024 | 68 | 52 | 19 |
Sources: PwC AI Index 2025; BEA.
The productivity effect so far
Non-farm productivity rose 2.1 percent in 2024, double its pre-pandemic average. Generative-AI applications in coding, design, and logistics are delivering measurable efficiency gains, but diffusion remains uneven across sectors.
Table 2. Productivity Growth by Sector (% YoY)
| Sector | 2015–19 Avg | 2024 | 2025 (f) |
|---|---|---|---|
| Manufacturing | 0.8 | 1.9 | 2.3 |
| Services | 1.1 | 1.7 | 2.0 |
| Information & Tech | 2.9 | 4.8 | 5.2 |
Sources: BEA; Conference Board.
Strategic takeaway
Executives should prioritize AI investments that pair automation with human-capital redesign. Early adopters report 15–25 percent faster project delivery and improved decision speed. Productivity leadership will separate firms that master data integration from those that merely pilot tools.