The Stanford University Institute for Human-Centered Artificial Intelligence issues a notable monthly statement on the status of the artificial intelligence industry. The latest review, released this year, spans an impressive 502 pages and offers a plethora of insights into contemporary technologies. Surprising disclosures regarding the decline in global business investment in AI for the second consecutive month are nestled within the section discussing the AI industry’s economic landscape.
Despite the general perception that 2023 was the pinnacle of AI enthusiasm, marked by the emergence of numerous new chatbots and companies, the recent HAI report unveils a contrasting reality. In 2023, the total investment in AI plummeted to $189.2 billion, marking a substantial 20% decrease from the previous year. The most significant downturn was observed in mergers and acquisitions, which experienced a sharp decline of 31.2% compared to the previous year. However, the report highlights a remarkable thirteenfold increase in AI-related investments over the past decade.
The report underscores that the peak of global corporate investment in AI was recorded in 2021, with total investments reaching \(337 billion. This figure saw a decline to \)234 billion in 2022, further dropping by approximately $40 billion in the subsequent year.
Despite these fluctuations, the United States continues to be a formidable force in AI investment, surpassing all other global competitors. The report specifically mentions that the U.S. maintained a robust pace of AI investment, leading to a record number of new AI company launches last year. Notably, the U.S. witnessed nearly 8 AI investments, a stark contrast to China, the next highest global investor, which only recorded a fraction of that number. Furthermore, the U.S. welcomed 897 newly funded AI companies in the same period, significantly outpacing China, which saw only 122 new company launches.
Moreover, the report highlights findings from a McKinsey survey, revealing that organizations leveraging AI in the previous year achieved substantial cost savings and revenue growth. This trend suggests that AI plays a pivotal role in driving significant business efficiency gains. However, the notion of “business efficiency” often raises concerns about potential workforce displacement due to algorithmic integration. Notably, the most prevalent application of AI among surveyed businesses in 2023 was contact-center automation, with 26% of respondents citing it as their primary use case.
