H C I

Policy Brief 1:

Executive Summary

Global AI investment is accelerating at breakneck speed—reaching US $252 billion in 2024, up 45% from 2023. Private investment in the U.S. alone stood at US $109 billion, compared to China’s US $9.3 billion. Meanwhile, public spending on human capital remains stagnant: education averages 4.4% of GDP globally, health 6%, with far lower shares in developing countries. Bangladesh spends just 1.5% of GDP on education and about 1% on health. This imbalance between AI and human investment poses risks for economic resilience, equity, and ethical governance.

Key Challenges for Bangladesh

• Education spending has stagnated at ~1.5% of GDP—well below UNESCO’s 4–6% benchmark.

• Health spending is about 1% of GDP, one of the lowest in South Asia, leaving gaps in preventive care and mental health.

• Outcomes: 28% of under-five children remain stunted, while skills shortages persist among youth. At the same time, Bangladesh is accelerating digital and AI initiatives, risking imbalance between technology and people.

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