Analysts attribute the overall decline in AI investment to slower-than-expected growth and the challenges of scaling AI technologies in real-world applications. However, generative AI, which creates new content, remains a bright spot, with funding reaching $25.2 billion in 2023, nearly nine times the investment in 2022. Despite the general downturn in AI investment, experts believe the AI industry is moving towards a more sustainable and normalized pace in 2024, with the overall trajectory for AI investment remaining robust and poised for sustained growth.
Key takeaways:
- Global investment in AI fell for the second consecutive year in 2023, with both private and corporate investments in the industry experiencing a decline.
- Despite the overall decline, more AI companies are receiving investments than ever before, with 1,812 AI startups announcing funding in 2023, a 40.6% increase from 2022.
- Investors are becoming more discerning, with a shift towards a more mature and deliberate approach in evaluating AI investments due to challenges in scaling AI technologies in real-world applications.
- Generative AI, which creates new content, remains a bright spot in the industry, with funding reaching $25.2 billion in 2023, nearly ninefold the investment in 2022.