The U.S., China, and the UK are the top countries leading AI startups. India with 338 AI startups, ranked 7th, is creating its AI impact globally.
Artificial Intelligence (AI) these days has become an essential part of businesses as well as human life. From automating tedious tasks that are prone to human error and safety to enhancing customer experience in businesses, AI has surpassed humans in various settings.
As AI is capable of improving productivity, its impact on the global economy is crucial to watch. In an Ipsos survey, 37% of people believe AI will improve their jobs. Conversely, 34% feel AI will boost the economy while 32% anticipate it will enhance the job market.
According to the PwC report, AI is estimated to contribute up to $15.7 trillion to the global economy in 2030. China (26%) and North America (14.5%), equivalent to a total of $10.7 trillion and accounting for almost 70% of the global economic impact, would be the leading contributors.
The Stanford University Artificial Intelligence Index Report 2024 reveals that industry continues to dominate frontier AI research, with 51 notable machine learning models produced in 2023. The AI research involves only 15% contribution from academia. The industry-academia collaborations resulted in 21 notable models which were reportedly high in 2023.
As we have already been equipped with AI in some forms, there are a large number of startups around the world making it possible. Here, we will explore the top 10 countries that are leading with the most number of AI startups. So let’s get started!
Also Read: Top AI Innovations in Recent Years
Top Countries Leading With Most AI Startups
The Stanford AI Index Report 2024 has revealed the top countries with the most AI startups that have seen greater growth over the last decade.
The following table lists the top countries leading with great emphasis on AI startups.
| Rank | Country | Number of Newly Funded AI Companies |
| 1 | United States | 5,509 |
| 2 | China | 1,446 |
| 3 | United Kingdom | 727 |
| 4 | Israel | 442 |
| 5 | Canada | 397 |
| 6 | France | 391 |
| 7 | India | 338 |
| 8 | Japan | 333 |
| 9 | Germany | 319 |
| 10 | Singapore | 193 |
| 11 | South Korea | 189 |
| 12 | Australia | 147 |
| 13 | Switzerland | 123 |
| 14 | Spain | 94 |
| 15 | Sweden | 94 |
Areas That Attracted AI Investments
According to the AI Index Report, AI infrastructure/ research/ governance has witnessed a total investment of $18.3 billion in 2023. This investment is followed by NLP and customer support ($8.1 billion) and data management and processing ($5.5 billion).
What are the Top Artificial Intelligence (AI) Tools?
According to the University of Toronto international survey, 63% of people are aware of ChatGPT, and half of them are using this AI tool at least once weekly.
In a Stack OverLjow Developer Survey, ChatGPT has been the most popular AI search tool among professional developers with 83.25% of users, followed by Bing AI (18.80%).
Most Popular Top AI Search Tools
The following table highlights the top AI search tools popular among professional developers.
| AI Search Tools | Users |
| ChatGPT | 83.25% |
| Bing AI | 18.80% |
| WolframAlpha | 18.05% |
| Google Bard AI | 9.13% |
| Phind | 3.11% |
| You.com | 2.17% |
| Other | 1.21% |
| Perplexity AI | 0.97% |
| Quora Poe | 0.77% |
| Neeva AI | 0.36% |
| Andi | 0.20% |
| Metaphor | 0.13% |
Top Industries Using AI for Greatest Opportunity
There is no surprise that artificial intelligence (AI) has become a revolutionary technology across various industries. It revolutionizes business processes, enhances efficiencies, and creates new opportunities for growth and innovation.
Here are the top industries harnessing the potential of AI to capitalize on opportunities:
Healthcare: AI is transforming healthcare through increased efficiency, better diagnosis, and more individualized treatment for each patient. Some of the AI applications in healthcare include:
- Medical Imaging Analysis
- Personalized Medicine
- Drug Discovery
Finance: AI plays a crucial role in financial services. It develops customized investment solutions for mass-market consumers. Some of the AI applications in finance are:
- Customer Service
- Algorithmic Trading
- Fraud Detection and Risk Management
Retail: In order to improve customer experiences, optimize supply chains, and drive sales growth, retail and consumer companies are leveraging AI. Some popular AI applications in retail include:
- Personalized Shopping Experiences
- Inventory Management
- Visual Search and Virtual Try-On
Automotive: AI in automotive plays a transformative role. It provides advancements in autonomous driving and smart manufacturing. Some of the AI applications in automotive include:
- Autonomous Vehicles
- Predictive Maintenance
- Supply Chain Optimization
Also Read: The Next Wave: Top Digital Transformation Trends Driving Industrial Evolution
The Bottom Line
The global rise of artificial intelligence (AI) startups has transformed the technology landscape and stimulated economic expansion and innovation. Nations like the US, China, the UK, and India are leading the way in this transformation and are creating ecosystems that support AI research and use.
These AI startups are changing not just industries but also the way we use technology on a daily basis. As AI startups continue to grow exponentially, questions like how will they shape the future of work, maintain privacy, and fulfil ethics? What part will developing nations play in the upcoming AI innovation wave?