In the past few years, there’s been an unmistakable surge in interest surrounding artificial intelligence (AI). This excitement is not just restricted to the tech community; investors have also seen the potential and have acted on it. But just how significant has this trend been from 2019 to 2022? Let’s dive into the numbers.
Rising AI Investment Figures
From 2019 to 2023, investment in AI startups and research has seen a consistent upward trajectory.
2019: Investments in AI startups globally reached approximately $40 billion, according to statista.
2020: Despite the challenges posed by the COVID-19 pandemic, AI investments surged to about $50 billion, showcasing the resilience and potential of the sector.
2021: The momentum continued with AI funding reaching an estimated $65 billion.
2022: By the end of the year, projections indicated that AI-related investments would surpass $75 billion.
2023: Given the consistent upward trajectory, it’s conceivable that investments could breach the $90 billion mark by the end of 2023, assuming a continued interest in the sector and broader global economic stability.
Based on the data from Crunchbase, AI-focused startups in the US have witnessed an unprecedented surge in investments this year. Remarkably, over 25% of all startup investments have been channeled into AI enterprises, marking a more than twofold increase from the previous year. This means that for every 4 dollars invested in startups in the USA in 2023, 1 dollar was dedicated to AI ventures. Given this trend, it’s not surprising to see AI prominently featured in numerous tech startup pitch decks. When looking back from 2018 to 2022, AI startups accounted for an average of just 12% of the total funding capital.
A few standout points to note:
AI-related startup funding hit a staggering $23B in 2023. It’s believed that a significant portion of these investments were directed towards solutions incorporating generative AI.
In contrast, funding for non-AI startups amounted to a robust $67B during the same period.
Why the Surge?
Several reasons can account for this explosive growth:
Technological Advancements: As AI models became more sophisticated, they found applications in a broader range of industries, from healthcare and finance to entertainment and agriculture.
Increased Data Availability: The exponential growth of data meant that there was more raw material for these AI systems to learn from and refine their algorithms.
Competitive Edge:
Companies worldwide recognized that AI could offer a significant competitive advantage, leading to increased adoption and integration.
Regional Highlights
North America, particularly the U.S., and Asia, especially China, have been at the forefront of this investment boom. Silicon Valley maintained its reputation as a hub for AI startups, while Beijing and Shanghai emerged as significant players on the global stage.
The Future
Even without concrete numbers for the latter part of 2023, the consistent growth trend up to 2022 and our hypothetical projection for 2023 suggest a bright future for AI investments. With AI technologies continually evolving and finding new applications across industries, it’s highly probable that the enthusiasm from the investment community will endure.
