2023 was, without a doubt, the Year of AI. Corporations have poured billions of dollars into researching and developing this technology while the world has experienced a boom of startups and programming firms specializing in artificial intelligence. Everybody wants a piece of the market, and why wouldn’t they?
Judging by how many AI companies are there in the last decade of 2023, the popularity of this technology will only grow bigger in the next year. But what’s going to happen to over 50,000 companies in this sector, due? Let’s see artificial intelligence statistics and what the future holds for one of the world’s most sought-after technologies.
AI Statistics: Wrapping Things Up For 2024
- 57,933 AI companies currently operate around the world.
- 25% of artificial intelligence firms operate in the US.
- $154 billion was spent on artificial intelligence solutions.
- 35% of the world’s businesses work with AI.
- The global AI market is valued at $207.9 billion, showing a 50% increase from 2022.
AI Statistics: The Largest Areas Of AI Integration
While the general public has been transfixed to the generative AI field, many businesses and organizations have spent billions implementing this tech in process automation. Currently, the most popular areas of artificial intelligence ranked by revenue of use cases are as follows:
Vehicle detection and anti-collision - $8.9 billion
Static image recognition - $7.6 billion
Trading strategies - $7.2 billion
Mapping and localization - $6.4 billion
Predictive maintenance - $6.0 billion
Cybersecurity - $5.7 billion
Document paper to digital conversion - $5.4 billion
HR systems - $5.3 billion
Medical image analysis - $5.1 billion
What Does the Future Of AI Hold?
The Global AI Market - Researchers believe that the AI market will be valued at $1.35 trillion by 2030.
Economical Impact - AI is expected to contribute $15.7 trillion to the global economy.
Job Automation - Experts predict that 30% of all jobs will be automated with AI.
Chatbot Market - By 2024, the chatbot market is estimated to reach $3.68 billion.
A report released by Accenture a year ago shows the biggest industries that compared the baseline figures of expected profit with and without AI integration.
Sector Difference Potential
Education 84% 62% higher test scores.
Hospitality industry 74% 20% better demand forecasting
Construction 71% 97% safety hazard detection
Retail 59% 30% increased sales
Healthcare 55% 40% chance of better health outcomes
Agriculture 53% 90% better disease detection
Why Companies Are Hesitant To Adopt
Despite the abundant benefits of this technology, many organizations are reluctant to integrate AI into their processes, statistics about artificial intelligence say. In a Stanford survey published in 2022, many respondents cited these concerns as the most pressing:
- Cybersecurity - 59%
- Regulatory compliance - 45%
- Personal privacy - 40%
- Explainability - 37%
- Reputation - 32%
- Fairness - 30%
- Workforce displacement - 28%
- Physical safety - 20%
How Many AI Startups Will There Be In 2024?
Companies invest heavily in the research and development of Artificial intelligence solutions. According to AI statistics on Statista.com, the global AI market will reach approximately $250,000 billion by the end of 2024. Several countries will have the biggest investments and number of startups based on previous funding efforts.
Number of Startups Investment Biggest Investors
United States 4643 $249 billion Google, Facebook, and Microsoft
China 1337 $95 billion Alibaba, Baidu, and Tencent
Canada 341 $8.64 billion The Canadian Institutes of Health Research, the Natural
Sciences, and Engineering Research Council of Canada
United Kingdom 630 $21 billion Google, AWS, HPE, and Beyond Limits
Germany 245 $7 billion High-Tech Gruenderfonds, Bayern Kapital, APX,
and IBB Ventures
France 338 $7 billion Xavier Niel, Rodolphe Saadé and Eric Schmidt.
India 296 $3.24 billion The National Research Foundation
Israel 402 $11 billion Intel, Nvidia, Microsoft, Google, General Motors,
Siemens, IBM, and Citi
Japan 294 $4 billion Mitsubishi UFJ Capital, Monex Ventures,
Sumitomo Mitsui Banking Corporation, and Deep30
Singapore 165 $5 billion Walden International, EDBI, CerraCap Ventures,
and TNB AURA
Top AI Startups To Follow In 2024
The recent analysis doesn't give a definitive answer to how many AI startups there will be in 2024, but it provides a glimpse into the future of this market. Several startups with the most potential in 2024. Let’s take a closer look at each of them and see what they have to offer for different sectors of artificial intelligence.
- Anthropic
Founded in 2021 by several former OpenAI staff, the company wowed the world with their advanced virtual assistant Claude and Claude 2. Some experts even believe that they are superior to other popular tools, such as ChatGPT. This is because the second version of the product uses almost more than twice as many tokens as OpenAI’s solution.
- investments. $3.3 billion.
- Value. Claude-Next.
- Prognosis. Claud’s next version will reportedly be 10 times more robust than current AI solutions
- AI21 Labs
One of Israel’s many AI startups, AI21 Labs is the frontrunner in the region’s transition into 2024. This company works on task-specific LLMs like Jurassic 2. These models can be used to tailor AI-based business solutions that paraphrase text, summarize it, and perform other types of natural language tasks.
- Investments. $326.5M million.
- Value. AI21 Studio.
- Prognosis. AI21 Labs shows the future of accessible programming, allowing organizations to fine-tune LLMs to particular use cases.
- AEye
Like esla, AEye heavily invests in enhancing self-driving cars with AI tech. The company works on its laser-based sensor system that helps these vehicles navigate the world. AEye programmers also work on detectors that can mimic human senses.
- Investments $314.1 million.
- Value. LiDar technology.
- Prognosis. The LiDar sensors have the potential to detect objects 300 meters away from the vehicle, reducing the risk of collision and traffic accidents.
- Brex
Launched in San Francisco in 2017, Brex is by far the most promising startup in the financial sector. It offers businesses a fast way to handle their funds. This includes cash management, expense controls, and credit cards.
- Investments. $1.5 billion.
- Value. Brex financial system.
- Prognosis. Brex’s solution helps companies spend less time on accounting and establishing spending behavior. This, in turn, helps make a credit line that fits particular businesses the most.
- Cradlewise
An American startup that dates back to 2018 and is one of the most interesting health firms to follow in 2024. Cradlewise works on introducing the power of AI into baby cots to turn them into intelligent nurseries. Its AI components react to the infant’s sleep patterns and rock the cradle or play soothing music.
- Investments. $7.19 million.
- Value. Cradlewise Smart Crib.
- Prognosis. Further research into this product can revolutionize nursing for infants, making their rest more sound.
- Hugging Face
For the past 6 years, this company has grown into one of the world’s largest providers of pre-trained machine-learning models, resources for AI apps, and free access libraries. Hugging Face also hosts a leaderboard ranking the best LLMs, allowing developers to find models for specific projects and solutions quickly.
- Investments. $395.2 million.
- Value. AI development platform and paid Enterprise Hub Solution.
- Prognosis. Hugging Face offers a comprehensive way for businesses to integrate ML models into their infrastructure through model deployment and dedicated managed endpoints.
- Midjourney
While this company has only been around for two years, it has shown what image-generation technology is capable of. Midjourney’s LLM of the same name is available for everybody to explore on the Discord chat app. Its latest version (V5.2) was released this June and shows great capacity for creating high-resolution and detailed images.
- Investments. $155 million.
- Value. Midjourney
- Prognosis. The company will most likely continue being at the forefront of image-generative AI, competing with other LLMs like DALL-E.
- Observe AI
This San Francisco-based startup was launched in 2021 and specializes in NLP tools capable of monitoring voice and text conversations at call centers. Their solution automates tasks and improves the workflow of support agents. It even offers real-time guidance about handling conversations and helps coach new employees.
- Investments. $214 million.
- Value. Observe.AI platform.
- Prognosis. The company’s latest data shows that call centers across America have increased interest in AI-powered training and getting better client feedback.
- OpenAI
Unsurprisingly, one of the oldest companies on this list, dating back to 2015, OpenAI will stay an important player in the field of AI, especially its generative segment. The company continues to invest in developing its ChatGPT and DALL-E 3 tools. Recently, its owners have expressed a desire to expand into AI chip production, further expanding the scope of OpenAI.
- Investments. $11.3 billion.
- Value. Gobi LLM, GPT-5, AI Chip technology.
- Prognosis. In 2024, OpenAI is likely to remain a solid player in the field of generative AI and expand into other areas of this technology.
