AI keeps flexing its muscles – and for good reason.
It’s been a year since Open AI (its ChatGPT generative AI tool rolled out on November 30, 2022) and the artificial intelligence has gained some impressive ground in the last 12 months.
To celebrate ChatGPT’s “birthday”, let’s take a look at how far AI has expanded in 2023, which many pundits are already calling “The Year of AI”.
Here are multiple key facts that highlight the rapid ascension of artificial intelligence, most of which have shifted into higher gear in 2023.
Private funding for AI firms has skyrocketed.
According to a recent report from the Everest Group, funding for industry-leading lights like Open AI, Palantir, and Anthropic – has crested $50 billion in guaranteed lifetime funding.
“As AI technology rapidly advances, it is redefining human-machine interactions and reshaping industries, if not our way of life,” said Vishal Gupta, vice president at Everest Group. “The remarkable growth in AI innovation has given rise to more than 5000 AI technology providers in the past decade alone, by our estimates.
The “Big Guns” are pouring massive amounts of cash into AI providers.
The same report notes that the major industry technology companies are in a sprint to land the best deals with top AI businesses. Microsoft just linked up with Open AI on a multi-billion deal while Amazon is investing $4 billion in Anthropic, which says it’s making progress in developing “reliable, interpretable, and steerable” AI systems.
On the semiconductor side, Nvidia has done steering of its own, flashing over $700 million in cash to finance up-and-coming AI companies like Enfabrica, Imbue, and AI21 Labs.
Revenue estimates – and investment interest – are highly bullish.
Artificial intelligence industry revenues should clock in at $3.7 billion by the end of 2023. Sector revenues should rise to $36 billion over the next five years, S&P Global Market Intelligence recently reported.
“The Generative AI software market is currently in the development stage,” said Nick Patience, managing analyst of Data, AI, Infosecurity and risk at S&P Global Market Intelligence. “While Generative AI models have been in development for years, the wide-scale productization of these models is a recent phenomenon with many vendors included in our analysis currently still in the beta or initial launch stage with their commercial products,”.
That said, Patience anticipates a rapid expansion of the market overall, with some sectors advancing faster than others. “Overall, we think the impact of generative AI will be huge and change the way we work with language, images, code, audio and video,” he says.
A conference call staple.
For a glimpse of how highly high-level financial executives think about AI, Business Insider (via Wall Street Zen) reports the terms “artificial intelligence”, “AI”, or similar monikers came up 7,359 times in Q2 earnings calls.
That’s 4.6 times more frequent than in Q1, 2023, BI reports.
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.
