It is no surprise: Economic investments in artificial intelligence technology continue to grow. Private investments in AI alone in 2021 have more than doubled compared to the previous year. The U.S. and China are leaders in this area.
In this context, however, I find one aspect particularly interesting:
While the total amount of funding raised by venture capitalists for AI startups has increased significantly since 2017, the number of companies that qualify for funding is shrinking.
The AI sector’s value will exceed the $135 billion mark in 2022, growing at a combined annual growth rate of 38% between now and 2030, according to analysts. This increase can be attributed to improved performance by algorithms, increased use cases for AI products and services and an influx of startups into the market.
Looking at the top spots in private AI investment, the U.S. currently holds an upper hand, China has been rapidly gaining ground following significant investments in AI.
By the end of 2020, the U.S had invested over $23 billion in private investments in the sector. That was more than twice the $9.9 billion that China did.
However, China has set its sights on becoming the world’s AI innovation hub, targeting to grow its market share to $150 billion.
Definitely an exciting development from every angle.
P.S. Together with talented teams, I build digital businesses worldwide. If you would like to exchange ideas about digital growth, feel free to contact me.
Cover image: Shuo – stock.adobe.com
Source: moneytransfers(dot)com, Digital Signage Today