At South Summit 2026 in Madrid, the message was clear: tech has moved beyond AI hype. The event, co-organised by IE University, hosted representatives from Google X, Eleven Labs, and Airbus SE. "AI is converging in all industries and will transform the whole economy," says Nacho Mateo, CEO of South Summit. OECD data shows 61% of global venture capital went to AI projects in 2025, up from 30% in 2022. Juan José Guemes, chairman at IE University, notes AI is now like electricity—"nobody won a market by just having electricity."

A buildathon with Stockholm's Lovable demonstrated accessibility, letting participants build prototypes in under four hours. Guemes identifies three areas for defensible AI companies: proprietary data, workflow integration, and human judgement. "When anyone can build a tool, the scarcity is knowing what to build and who to build it for."

Defence and dual-use tech emerged as a key focus. Leaders from the Spanish Ministry of Defence and NATO DIANA discussed European sovereignty. Mateo says founders must navigate multiple regulatory frameworks, which is a competitive advantage. Guemes argues Europe should solve complex real-world problems: cybersecurity, applied AI, space technology.

Funding models are shifting. With AI reducing execution costs, investors should deploy capital at growth-stage when startups have proven sustainable models. "AI has removed the excuse not to start," says Guemes. "What stays scarce is knowing what's worth building and getting it adopted."