A brand new report shines some mild on the investments made into synthetic intelligence (AI) between 2015 and 2019, revealing that the U.S. attracted greater than half of all world AI investments throughout the 5 12 months interval, adopted by China and the U.Ok.

The UK Tech For a Changing World report was produced by government-funded Tech Nation, and focuses largely on the British digital economic system. However, it compares and contrasts the U.Ok.’s tech business with different nations all over the world, utilizing knowledge from myriad sources together with Dealroom, Pitchbook, Crunchbase, AON Radford, GSMA, and EY. In the foreword, Prime Minister Boris Johnson stated that the analysis “confirms the United Kingdom’s standing as Europe’s number one Tech Nation,” including that the U.Ok. is main the way in which in rising applied sciences

“In the space of a single year, we have shattered all records, with technology investment in the U.K. soaring by 44 percent to over £10 billion ($12 million) — more than France and Germany combined,” Johnson stated. “And we are number one in Europe for the emerging technologies that will transform the lives of every single human being.”

AI and rising applied sciences

“Emerging technologies” is outlined as AI, robotics, cybersecurity, blockchain, web of issues (IoT), digital actuality (VR), and augmented actuality (AR). According to the report, 10 nations have been answerable for 91% of all rising know-how investments previously 5 years, with the U.S. main the way in which with £75 billion ($92 billion) of inbound investments adopted by China ($22 million) and the U.Ok ($6 billion).

Tech Nation: U.S. companies raised 56% of global AI investment since 2015, followed by China and U.K.

Above: Tech Nation: The high 10 nations for rising know-how investments between 2015 and 2019

Image Credit: Tech Nation

Moreover, 10 cities accounted for 44% of all rising know-how funding throughout the 5 12 months interval — San Francisco led the way in which with greater than £16 billion ($20 billion) of the whole funding, adopted by Beijing ($12 million), New York ($7 billion), Santa Clara ($6 billion), and London ($5 billion).

Tech Nation: U.S. companies raised 56% of global AI investment since 2015, followed by China and U.K.

Tech Nation: U.S. companies raised 56% of global AI investment since 2015, followed by China and U.K.

Above: Tech Nation: 10 cities raised 44% of rising know-how funding between 2015 and 2019

Image Credit: Tech Nation

Relative to different rising know-how investments, AI startups and scaleups have been far and away the main class for buyers, securing £19 billion ($23 billion) in financing final 12 months — and the chart under exhibits, AI funding has just about seen hockey stick-style progress since 2016. The closest contender was cybersecurity, which skyrocketed from £5 billion ($6 billion) in 2018 to £Eight billion ($10 billion) final 12 months.

Robotics, however, skilled a downturn in world funding final 12 months, lending credence to the notion that {hardware} is difficult — it fell from £9.1 billion ($11 million) to £7.1 billion ($8.7 billion) between 2018 and 2019. The same development has surfaced in different experiences, together with knowledge launched final month by the Association for Advancing Automation which urged that robotics’ shipments fell in the U.S. last year by 16%.

Tech Nation: U.S. companies raised 56% of global AI investment since 2015, followed by China and U.K.

Above: Tech Nation: AI investments relative to different rising applied sciences

Image Credit: Tech Nation

Digging down into the market-by-market numbers, the U.S. drew in 56% of worldwide AI investments over the previous 5 years, rising from round £2 billion ($2.5 billion) in 2015 to nicely over £10 billion ($12 billion) final 12 months — in complete, £32 billion ($40 billion) was raised by U.S. AI corporations from 2015 to 2019. China was second by way of AI funding with £12 billion ($15 billion, 22%), adopted by the U.Ok. with £3.2 billion ($four billion, 6%).

The report additionally highlighted that the U.S. topped the AI record by way of general variety of offers with round 850 investments final 12 months, adopted by the U.Ok. (200) and China (100).

Tech Nation: U.S. companies raised 56% of global AI investment since 2015, followed by China and U.K.

Above: Tech Nation: The high 5 nations for AI investments between 2015 and 2019

Image Credit: Tech Nation

It’s value noting that figures within the Tech Nation paper might differ barely to different experiences. For instance, the National Venture Capital Association (NVCA) reported that 1,356 AI-related corporations within the U.S. raised $18 billion final 12 months, which is notably greater than the roughly 850 AI corporations that raised round $14.7 billion in line with Tech Nation. But these discrepancies are principally right down to the truth that they’re measuring barely various things — in line with Tech Nation’s head of insights George Windsor, its report is particularly centered on VC funding into corporations which might be “developing new-to-market AI technologies.” This is against AI-related corporations that could be making use of current know-how to a brand new space or software. In different phrases, Tech Nation has taken a narrower focus with its report.

More broadly, it’s additionally value stressing that funding doesn’t essentially take the type of fairness stakes — the entire main know-how corporations bolstered their AI by acquisitions final 12 months, a development that has been rising steadily lately. Indeed, 2019 noticed a record 231 AI startups acquired, in line with CB Insights’ knowledge, up from 42 in 2014.