We know you’re sick of hearing us complain about AI and how it’s a buzzword. In reality, the trends surrounding the buzz basically complement it very well. Technological advancement is ridiculous right now, but none has been as ridiculous or heavily invested in as the current boom of AI. Today, the scale of investment in AI dwarfs any previous era of technological development (dot-com, etc.), marking a pivotal moment for the world of investors and the world.
This has been a topic before, so then many of you may know, but investment in AI has skyrocketed. Globally, startups in the AI space have raised a staggering $50Bn in 2023 alone. That exact number isn’t just a reflection of the growing interest in AI, but it’s also an indicator of the potential that investors see in the technology. Financial commitment to AI is one of those things that many can say has “never been seen before,” especially when compared to other tech booms such as the dot-com era or the mobile revolution.
As mentioned above, the AI investment surge is something that’s happening globally. Across the world, AI startups are securing top-tier VC funding. For example, according to Crunchbase, the number of AI startups receiving VC funding has more than doubled over the past five years. This is driven, mostly, by the realization that AI is poised to change industries including healthcare, finance, and professional services.
While you can invest into a project just because it mentions AI, there are better factors which are contributing to the investment surge into AI. Firstly, ML is advancing, deep learning is advancing, and both have made AI more capable and applicable than ever before. Even the innovations of natural language processing, computer vision, and autonomous systems are opening up even more doors for investment money to flow in.
There’s also an economic opportunity presented by AI that’s enormous – literally. According to a report by PwC, AI could add up to $15.7Tn to the global economy by 2030. To put that into perspective, that’s larger than the current GDP of China. It’s also not too far behind from the United States's $25.44Tn. An economic potential like this gives so many different countries a reason to push for AI – it’s a modern day space race. The United States, China, and the EU are all leading the charge, but other nations are catching up at a fast pace. Remember, competition drives advancement and innovation…
Sam Altman and the team at OpenAi secured just over $1Bn in funding from investors such as Microsoft, reflecting one of many success stories of AI startups receiving top-tier VC funding. UiPath and DataRobot have also gotten multi-billion dollar valuations, exemplifying the high stakes and confidence in AI’s future.
These are impressive numbers, but the even more impressive aspect is that the growth trajectory isn’t slowing down. The investment wave of AI will continue to grow as long as more AI technologies continue to evolve and integrate into different industries or aspects of life. Demand for innovative software solutions will increase as well…
We are in the era of AI. Not only for applications and uses, but also for the investment world. With $50Bn raised by AI startups in just 2023 and the potential for a $15.7Tn contribution to the global economy by 2023, the scale of investment is a push for the potential AI has. As the growth continues, technology advances, and more, it will continue to shape the future of the world.