According to EY, global investment in generative AI will double in 2024.
2023 was marked by massive generative AI investments as Microsoft and Amazon put in $15 billion and $21 billion, respectively. But, this year, they’re not the only ones doubling down on genAI. Venture investors are putting in the money to help evolve the AI landscape at a much more rapid phase.
The first quarter of 2024 has already seen $3 billion in global investments, with projections indicating a potential total investment of over $12 billion for the year. Interest in AI, especially GenAI, remains high due to public curiosity and early adoption rates.
EY projects that global investment in AI will reach more than $12 billion before the year ends, which is double compared to last year.
One of the biggest reasons for this growth is the switch from horizontal AI to vertical AI. This shift in application will only continue to drive further investment and deal activity going forward. However, it’s not just genAI that VCs are starting to show interest in sectors like healthcare and natural language interfaces.
EY Ireland Valuations Partner Grit Young believes that AI will be “central to the future growth strategies of many and varied businesses,” adding that the United States is the leader in AI investments with countries like France, the UK and Ireland showing potential as the rest of Europe lags behind.