The global surge in artificial intelligence investment is now reshaping currency markets, with the British pound and Swedish krona emerging as top beneficiaries. Analysts say sizable AI-related capital inflows are boosting both currencies, especially amid a softer U.S. dollar and heightened expectations for Federal Reserve rate cuts.
According to Stanford University’s AI Index, the U.K. and Sweden ranked third and fourth worldwide in private AI funding last year, each attracting more than $4 billion — trailing only the U.S. and China. These inflows are being funneled into data centers, infrastructure expansion, and advanced machine learning development.
So far in 2025, the krona has gained about 15% against the U.S. dollar, outperforming all major European currencies, while the pound has risen roughly 7%. JPMorgan notes that strong backing from Microsoft, Nvidia, Meta, and Alphabet has strengthened capital demand for both sterling and the krona.
Rabobank strategist Jane Foley highlights that foreign investment has significantly increased their resilience, while Société Générale’s Kenneth Broux argues that U.S. tech commitments are helping offset negative sentiment ahead of the U.K.’s November budget.
Although it may still be early to quantify AI’s full economic impact, analysts widely agree the trend provides a bullish structural backdrop — lifting productivity expectations and investor confidence in both the U.K. and Sweden.