Actually, Corporate Investment in AI Saw a Significant Drop in 2023

Every class , Stanford University’sInstitute for Human - Centered Artificial Intelligencereleases a big report about the status of the artificial intelligence industry . This year ’s study , published this week , is a whopping 502 pages and admit a wealth of insights on the trendy technology . Tucked into its surgical incision on the economic science of the AI industry is the surprising Book of Revelation that global corporate investment funds in AI actually drop last year for the 2d straightforward class in a row .

This might come as a surprisal to some since 2023 was largely considered to bea period of peak AI plug . New chatbots and companies spawned aplenty , as top executives spread inflated rhetoric about the applied science ’s potential . And yet , the young HAI report notes that in 2023 , total investment in AI …

… dropped to $ 189.2 billion , a decrease of approximately 20 % from 2022 . Despite a slight simplification in secret investment , the most significant downturn come in mergers and acquisition , which fell by 31.2 % from the previous twelvemonth . However , over the past decade , AI - refer investment have increase thirteenfold .

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The peak of global corporate investment in AI was really 2021 , according to the report . During that year , total investment crested $ 337 billion . In 2022 , it then shake off to $ 234 billion , before dropping another $ 40 - ish billion last class .

That sound out , the U.S. is still pouring money into AI at a charge per unit that dwarfs all orbicular contender , and more AI ship’s company launch last year than ever before . The story notes that U.S. investiture in unreal intelligence last twelvemonth were “ nearly 8.7 times more than ” that of China , which is the next highest investor , globally . Meanwhile , the U.S. saw 897 newly funded AI companies last twelvemonth , which , again , vastly outpaced China , which only saw 122 new companies launched .

The report also notes that , according to a survey carry by McKinsey , organizations that did deploy AI last year saw drastic reductions in costs and boosts in revenue , which , as the story puts it , suggests “ AI is driving significant business efficiency gains . ” In worldwide , “ commercial enterprise efficiency ” just ca n’t help but sound like a coded terminus for laying off humanity and supervene upon them with an algorithm . The report notes that the “ most usually sweep up AI use case by role among survey businesses in 2023 was contact - midpoint automation , ” with 26 percent of surveyed line say that ’s their elementary use for AI .

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