Global Startup distribution for AI stands at $14.28 Billion, with US dominating the startup landscape and Europe growing rapidly
Zinnov released a first-of-its-kind study on the Global Artificial Intelligence market, titled, “The AI Spring: Innovations for the next decade” sharing insights into a domain which has witnessed momentous growth and development in the last 20 years. The released Zinnov study very significantly pointed out that AI today is disrupting some of the oldest and disruption-immune verticals like Automotive, Manufacturing and Finance. Three key major technology improvements over the last 20 years across computing capability, analytics capability and algorithm improvements are enabling the new wave of AI adoption. The domain is hence witnessing a considerable interest in terms of funding as well, with a ten-fold increase in investments globally (from $94M in 2011 to $1049M in 2016) in the last five years.
Laying specifics about the landscape, the released Zinnov study stated that there are three kinds of companies that are investing into AI today. The first ones are called ‘The Disruptors’. These are startups who are building AI platforms and applications. The second are termed ‘Tech Mafia’. These are 5 companies including Apple, Google, Facebook, Microsoft and Amazon. These companies collectively have a market cap over 1 Trillion Euros and employ an average of 5000 engineers working on AI, while the third category is that of the ‘Top 500 Global R&D spenders’ across verticals.
Divulging details on the geographical spread, the first-of-its-kind Zinnov study pointed out that with 2277 AI startups globally and the current market of over $14.28Bn, U.S currently dominates the global AI Startup landscape. Europe’s Artificial Intelligence (AI) Startup ecosystem is also emerging and growing rapidly with a total of 441 Startups currently and an overall investment of $1Bn across UK, France and Germany; with Fintech, Healthcare and Retail being the Top verticals. Global Organizations are also well leveraging the European start-up ecosystem, it pointed out.
Talking about this fast growing segment, Pari Natarajan, CEO, Zinnov said, “AI is the disruptive force of our time that will change industry structures drastically. The next-generation of products will be developed by AI. AI is just not enabling some new product features but is playing a role across the value chain of industries and is the fastest technology deployment to happen across industry verticals. In the last 5 years alone, investments in AI have grown ten-fold from $94M in 2011 to $1049M in 2016. We believe that the potential for disruption in AI will be higher for verticals where there is a high level of data availability and high reliance on software.”
Additionally, the study added that as Artificial Intelligence (AI) becomes a top priority in the innovation horizon of various global enterprises, its implementation comes with certain challenges.
