The article also predicts that AI regulation will become a critical topic in the U.S., especially in the context of the upcoming elections. AI-enabled searches are expected to account for 40% of all consumer searches, driven by changing consumer behavior patterns. Companies, particularly startups, are expected to report significant productivity improvements from AI, leading to reduced headcount growth but steady revenue growth. The average revenue per employee is expected to increase by 10%, twice the decade-long average, driven by the adoption and application of AI.
Key takeaways:
- The IPO market is expected to remain closed for the first half of 2024, with a few significant issuances reopening it later in the year, primarily driven by companies with strong unit economics and cash flow.
- M&A activity is predicted to increase throughout 2024, with the total value expected to surge above $60 billion, primarily driven by AI acquisitions.
- AI and data will continue to dominate the funding landscape, with AI becoming a core component of every product and driving increased demand for data.
- U.S. VC deals are expected to sustain at about $200-$220 billion in 2024, with AI businesses commanding a premium of about 10-15% to the market.