Priceonomics: Global AI investment analysis

Much of the current AI investment is led by large technology companies such as Google, Amazon, Baidu and Microsoft. However, depending on the industry, 10% to 30% of non-tech companies are also adopting AI technology.

In 2016, McKinsey estimated that spending on AI development was about $34 billion. The vast majority of that was spent internally by companies.

Internal corporate spending of $23 billion on AI is nearly three times the level of venture capital and private investment in the field. However, this huge investment is not evenly distributed among companies. McKinsey estimates that tech giants such as Google and Baidu spend $20-30 billion on AI each year.

According to Tractica Research, total spending in the AI ​​software market will approach $10 billion in 2018.

The AI ​​software market is expected to grow rapidly to nearly $90 billion by 2025.

In 2016, 62% of AI spending went to machine learning, twice as much as the second largest category, visual computing.

Industries adopting AI

According to Tractica, financial trading is the number one use case for AI spending, as evidenced by the huge demand for AI engineers on Wall Street. The second and third largest use cases for AI are image recognition and patient data processing.

According to the New York Times, junior AI experts earn between $300,000 and $500,000 a year, and that's just for those with only a few years of experience or who have just completed their PhDs. Some valuable talents in the industry have earned more than $100 million while working at companies like Google. Some nonprofits in the field even pay their top researchers more than $1 million a year to compete with the private sector.

If the San Francisco and San Jose areas are combined, they account for 19% of AI jobs, significantly more than New York. Considering that the Silicon Valley area has a population of 7 million and New York has a population of 20 million, on a per capita basis, this Northern California area has 4.5 times as many AI jobs as the New York area.

199IT.com Originally compiled from: Priceonomics. Please do not reprint without authorization