Over the last few years, AI investment has risen dramatically around the globe. It is actually the largest form of investment in the emerging market sector. The UK's position is slightly better than that of the European Union, but its investment is much lower than that of the United States. The United States has a reputation for being risk-averse and is well known for investing in AI. Its AI start ups have disrupted many traditional businesses and established a strong position within the AI space. But the UK risks losing out on the larger-scale economic benefits of AI business growth.
In the UK, the largest capitalised intangible asset is computer software. This is according to an ONS report, but it's only a small part of the total. Machine learning, natural language processor, and image processing are the most popular AI technologies. Companies should therefore invest in AI infrastructures. This can enable businesses to make better use of human capital. You can save a lot of money.
Globally, AI investment is forecast to grow over the next few decades. In 2020, the global corporate investment in AI will reach US$68 million. The United States is the leader in AI investment worldwide, with the European Union close behind. China is closing in on the United States. China has declared that it is aiming to make significant advances in AI by 2025. It has a clear IP strategy, and is investing heavily to research and develop AI.
AI is an extremely important technology that has the potential to completely transform the way many industries operate. However, there are numerous challenges associated with its implementation. It is crucial for governments to make sure they are prepared. They can support AI innovation and help address domestic issues. In addition, they can provide better guidance to help businesses implement AI systems.
In the United States, AI start-ups have received a record amount of investment in 2018. It was the first ever year that the number AI-startups grew faster than any year before. These start-ups develop products and services that solve specific problems. They are often quickly acquired and used by developers or other companies. Many of these start ups are too small for larger investment rounds. This is because of the difficulty in protecting their inventions.
In the United States, large technology firms provide AI services. Many AI-related R&D is outsourced to large multinationals. Many companies receive investment to develop AI system. These systems use large datasets in order to train models. Businesses need to invest in infrastructure. It is also possible to work remotely, which has allowed development teams to be distributed anywhere.
The UK has been known for being a great place incubating new technologies. It is a small market and many companies want to exit quickly. This could be an indication of a wider global trend, where M&A is used to quickly exit AI companies. To prevent national security risks developing, it is important that the UK improves its regulatory framework.