The European AI sector has seen a 168% increase in employment since 2020, with 349,000 people now working in AI companies. This growth aligns with the thesis of James Wise's book, "Startup Century," which predicts a rise in numerous small, productive companies. AI adoption is enhancing productivity, with 93% of companies in a CTO survey reporting significant workflow changes due to generative AI tools, leading to an average of 20% savings in operating costs. Wise believes AI adoption will continue to grow, although he suggests that the concept of a distinct AI sector may soon become obsolete.
Key takeaways:
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- Venture funding into European AI startups has increased significantly, with 25% of VC funding in the region going to AI startups, up from 15% four years ago.
- European AI companies have doubled in value over four years, reaching $508 billion, and now represent nearly 15% of the entire tech sector in value.
- AI companies in Europe have significantly increased employment, with 349,000 people employed this year, marking a 168% increase since 2020.
- Generative AI tools have significantly changed workflows, with 93% of companies reporting increased productivity and an average of 20% savings in operating costs.