The Strategist

CB Insights: Investments in AI fall by a third

03/20/2023 - 02:32

According to statistics from CB Insights, global investment in artificial intelligence (AI) start-ups has decreased by 34% to $45.8 billion in 2022.

Analysts at US research company CB Insights found that the amount of global investment in artificial intelligence technology was $45.8 billion in 2022. This is greater than the figures for 2018–2020, but notably less than the record 2021 value of $69.7 billion (by 34%). 2,956 deals were made in the worldwide AI market last year, which is 10% less than in 2021.

In 2022, the financial outcomes of investments in AI will be nearly identical to those of the worldwide venture capital industry as a whole. The same CB Insights data from January shows that worldwide venture capital investment fell by 35% in 2022 compared to the once-record year 2021, to $415.1 billion.

The study also found that in 2022, there would be 34 new AI "unicorns" worldwide, bringing the total to 166. A "unicorn" is a startup that has received a $1 billion valuation in less than ten years from its founding, has not gone public, and is still controlled by at least 75 percent of its founders. Of the 166 such businesses, 105 have their headquarters in the US, 41 in Asia, and only 12 in Europe. However, 616 deals with European AI start-ups were made last year (up 6%), setting a new high for the continent. Project funding decreased by 9% to $6.2 billion. 48% of the money invested in European initiatives came from the UK.