Investment in Artificial Intelligence (AI) has been in decline across the world, plummeting 34% last year to $45.8 billion, analytics company CB Insights reports.
According to its analysis, the decline directly corresponds to the broader venture-funding slowdown recorded in 2022. The total number of AI deals were also down for the year by 10% to just 2,956. The funding slightly rebounded in the fourth quarter, reaching $9.3 billion. However, the number of deals continued to decline during the period.
The report highlighted that, in 2022, the total number of AI unicorns reached 166, with 34 new additions. The number of mega-rounds in 2022 plummeted from the previous year’s record high to just 115, a 39% drop. Those deals reportedly represented $21.8 billion in funding, down 47% in annual terms.
“Europe bucked the broader trend for AI investment activity,” CB Insights wrote, noting that AI deals in the region increased to a record 616 last year. Investment in the sector, however, dropped by 9% to $6.2 billion.
“The UK drove a great deal of this activity, accounting for 48% of Europe’s AI funding and 32% of its deals in 2022,” the report said.
The record slowdown in global venture-capital funding was happening faster for AI startups as the macroeconomic pressures that already weighed on technology startups began to affect the investors who underpin the industry.
This article was originally published by RT.