AI startup company funding worldwide 2020-2023, by quarter

Funding in artificial intelligence (AI) startups maintained a stable growth in the years before the coronavirus (COVID-19) pandemic, increasing from 18 billion U.S. dollars in 2017 to 26 billion U.S. dollars in 2020. Investments into AI-driven startups increased substantially as of 2021, as generative AI emerged and at the outset of the COVID-19 pandemic, when it became clear that working from home and cyber solutions were a permanent part of the workplace. Consequently, investments grew from a little over 30 billion U.S. dollars in 2020 to more than 65 billion U.S. dollars in 2021. However, investments in AI startups had been slightly declining in 2022 until the record level of funding for OpenAI and other generative AI investments at the tail end of the year. 

Artificial Intelligence investments during COVID-19

During the COVID-19 pandemic, the level of investment rose in nearly all organizations across the globe. The increase was most staggering in the healthcare and pharmaceutical industry where nearly 44 percent of companies reported an increase in their use of artificial intelligence. The automotive industry, being one of the more advanced automation industries in the world, also increased its investment by over 40 percent. The automotive industry automation market totaled two billion U.S. dollars in revenue .

Artificial Intelligence in business and recession

The increased use of AI in the United States is enabling companies to reduce their labor demands and hiring cycles, thus becoming more efficient. Nearly a third of companies have either implemented or begun to implement AI driven solutions within their organization. In the context of energy driven recession faced by Europe - that is impacting the entire world - AI comes to the rescue. Most mobile companies reported an energy saving of 10 to 15 percent. Such small steps are vital in maintaining a robust technological economy in recession times.