The Economy CHAPTER 4: Artificial Intelligence Index Report 2023
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Artificial Intelligence
Index Report 2023
Artificial Intelligence
Index Report 2023
CHAPTER 4:
The Economy
Chapter 4 Preview 1
Artificial Intelligence
Index Report 2023
CHAPTER 4 PREVIEW:
The Economy
Overview 3 Narrative Highlight: The Effects of
Chapter Highlights 4 GitHub’s Copilot on Developer
Productivity and Happiness 41
4.1 Jobs 6 Industry Motivation 43
AI Labor Demand 6 Perceived Importance of AI 43
Global AI Labor Demand 6 AI Investments and Investment
Outcomes 44
U.S. AI Labor Demand by Skill Cluster
and Specialized Skill 7 Challenges in Starting and Scaling
AI Projects 46
U.S. AI Labor Demand by Sector 9
Earnings Calls 48
U.S. AI Labor Demand by State 10
Aggregate Trends 48
AI Hiring 13
Specific Themes 49
AI Skill Penetration 15
Narrative Highlight: What Are Business
Global Comparison: Aggregate 15
Leaders Actually Saying About AI? 50
Global Comparison: By Gender 16
Sentiment Analysis 52
4.2 Investment 17
4.4 Robot Installations 53
Corporate Investment 17
Aggregate Trends 53
Startup Activity 20
Industrial Robots:
Global Trend 20 Traditional Vs. Collaborative Robots 55
Regional Comparison by Funding Amount 22 By Geographic Area 56
Regional Comparison by Narrative Highlight: Country-Level
Newly Funded AI Companies 26 Data on Service Robotics 60
Focus Area Analysis 28 Sectors and Application Types 63
China Vs. United States 65
4.3 Corporate Activity 31
Industry Adoption 31 Appendix 67
Adoption of AI Capabilities 31
Consideration and Mitigation of Risks ACCESS THE PUBLIC DATA
From Adopting AI 39
Chapter 4 Preview 2
Artificial Intelligence Chapter 4: The Economy
Index Report 2023
Overview
Increases in the technical capabilities of AI systems have led to greater rates of AI
deployment in businesses, governments, and other organizations. The heightening
integration of AI and the economy comes with both excitement and concern. Will
AI increase productivity or be a dud? Will it boost wages or lead to the widespread
replacement of workers? To what degree are businesses embracing new AI
technologies and willing to hire AI-skilled workers? How has investment in AI
changed over time, and what particular industries, regions, and fields of AI have
attracted the greatest amount of investor interest?
This chapter examines AI-related economic trends by using data from Lightcast,
LinkedIn, McKinsey, Deloitte, and NetBase Quid, as well as the International
Federation of Robotics (IFR). This chapter begins by looking at data on AI-related
occupations and then moves on to analyses of AI investment, corporate adoption of
AI, and robot installations.
Chapter 4 Preview 3Artificial Intelligence Chapter 4: The Economy
Index Report 2023
Chapter Highlights
The demand for AI-related For the first time in the last
professional skills is increasing decade, year-over-year private
across virtually every investment in AI decreased.
American industrial sector. Global AI private investment was $91.9 billion
Across every sector in the United States for in 2022, which represented a 26.7% decrease
which there is data (with the exception of since 2021. The total number of AI-related
agriculture, forestry, fishing, and hunting), the funding events as well as the number of newly
number of AI-related job postings has increased funded AI companies likewise decreased.
on average from 1.7% in 2021 to 1.9% in 2022. Still, during the last decade as a whole, AI
Employers in the United States are increasingly investment has significantly increased. In 2022
looking for workers with AI-related skills. the amount of private investment in AI was 18
times greater than it was in 2013.
Once again, the United States leads in investment in AI.
The U.S. led the world in terms of total amount of AI private investment. In 2022, the $47.4 billion
invested in the U.S. was roughly 3.5 times the amount invested in the next highest country, China
($13.4 billion). The U.S. also continues to lead in terms of total number of newly funded AI companies,
seeing 1.9 times more than the European Union and the United Kingdom combined, and 3.4 times
more than China.
In 2022, the AI focus area with the most investment was medical
and healthcare ($6.1 billion); followed by data management,
processing, and cloud ($5.9 billion); and Fintech ($5.5 billion).
However, mirroring the broader trend in AI private investment, most AI focus areas saw less investment
in 2022 than in 2021. In the last year, the three largest AI private investment events were: (1) a $2.5 billion
funding event for GAC Aion New Energy Automobile, a Chinese manufacturer of electric vehicles; (2) a
$1.5 billion Series E funding round for Anduril Industries, a U.S. defense products company that builds
technology for military agencies and border surveillance; and (3) a $1.2 billion investment in Celonis, a
business-data consulting company based in Germany.
Chapter 4 Preview 4Artificial Intelligence Chapter 4: The Economy
Index Report 2023
Chapter Highlights (cont’d)
While the proportion of AI is being deployed
companies adopting AI has by businesses in
plateaued, the companies multifaceted ways.
The AI capabilities most likely to have been
that have adopted AI
embedded in businesses include robotic
continue to pull ahead. process automation (39%), computer vision
The proportion of companies adopting AI
(34%), NL text understanding (33%), and virtual
in 2022 has more than doubled since 2017,
agents (33%). Moreover, the most commonly
though it has plateaued in recent years
adopted AI use case in 2022 was service
between 50% and 60%, according to the
operations optimization (24%), followed by
results of McKinsey’s annual research
the creation of new AI-based products (20%),
survey. Organizations that have adopted AI
customer segmentation (19%), customer
report realizing meaningful cost decreases
service analytics (19%), and new AI-based
and revenue increases.
enhancement of products (19%).
AI tools like Copilot are China dominates industrial
tangibly helping workers. robot installations.
Results of a GitHub survey on the use of In 2013, China overtook Japan as the nation
Copilot, a text-to-code AI system, find installing the most industrial robots. Since
that 88% of surveyed respondents feel then, the gap between the total number of
more productive when using the system, industrial robots installed by China and the
74% feel they are able to focus on more next-nearest nation has widened. In 2021,
satisfying work, and 88% feel they are able China installed more industrial robots than
to complete tasks more quickly. the rest of the world combined.
Chapter 4 Preview 5Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
4.1 Jobs
AI Labor Demand Global AI Labor Demand
Figure 4.1.1 highlights the percentage of all job
This section reports demand for AI-related skills
postings that require some kind of AI skill. In 2022,
in labor markets. The data comes from Lightcast,
the top three countries according to this metric were
which mined millions of job postings collected from
the United States (2.1%), Canada (1.5%), and Spain
over 51,000 websites since 2010 and flagged listings
(1.3%). For every country included in the sample, the
calling for AI skills.
number of AI-related job postings was higher in 2022
than in 2014.1
AI Job Postings (% of All Job Postings) by Geographic Area, 2014–22
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
2.05%, United States
2.00%
AI Job Postings (% of All Job Postings)
1.45%, Canada
1.50% 1.33%, Spain
1.23%, Australia
1.20%, Sweden
1.16%, Switzerland
1.14%, United Kingdom
1.01%, Netherlands
0.98%, Germany
1.00% 0.89%, Austria
0.86%, Belgium
0.84%, France
0.72%, Italy
0.50%
0.45%, New Zealand
0.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.1.1
1 In 2022, Lightcast slightly changed their methodology for determining AI-related job postings from that which was used in previous versions of the AI Index Report. As such, some of the
numbers in this chart do not completely align with those featured in last year’s report.
Chapter 4 Preview 6Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
U.S. AI Labor Demand by Skill Cluster and Specialized Skill
Figure 4.1.2 showcases the most in-demand AI skill clusters in the U.S. labor market since 2010. The most
in-demand skill cluster was machine learning (1.0%), followed by artificial intelligence (0.6%) and natural
language processing (0.2%). Every listed AI skill cluster is now more in demand than it was 10 years ago.
AI Job Postings (% of All Job Postings) in the United States by Skill Cluster, 2010–22
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
1.03%, Machine Learning
1.00%
AI Job Postings (% of All Job Postings)
0.80%
0.60% 0.61%, Arti cial Intelligence
0.40%
0.20%, Natural Language Processing
0.20% 0.16%, Neural Networks
0.15%, Autonomous Driving
0.13%, Visual Image Recognition
0.06%, Robotics
0.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.1.2
Chapter 4 Preview 7Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
Figures 4.1.3 and 4.1.4 showcase the top ten specialized skills that were demanded in AI job postings in 2022 compared
to 2010–20122. On an absolute level, virtually every specialized skill is more in demand now than a decade ago. The
growth in demand for Python is particularly notable, evidence of its growing popularity as an AI coding language.
Top Ten Specialized Skills in 2022 AI Job Postings in the United States, 2010–12 Vs. 2022
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
296,662
Python (Programming Language)
12,884
260,333
Computer Science
48,001
185,807
SQL (Programming Language)
22,037
159,801
Data Analysis
16,571
157,855
Data Science
1,227
155,615
Amazon Web Services
962
152,956
Agile Methodology
7,549
138,791
Automation
13,207
133,856
Java (Programming Language)
26,557 2022
133,286 2010–12
Software Engineering
22,384
0 50,000 100,000 150,000 200,000 250,000 300,000
Number of AI Job Postings Figure 4.1.3
Top Ten Specialized Skills in 2022 AI Job Postings in the United States by Skill Share, 2010–12 Vs. 2022
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
37.13% (+592%)
Python (Programming Language)
5.36%
32.58% (+63%)
Computer Science
19.98%
23.25% (+153%)
SQL (Programming Language)
9.17%
20.00% (+190%)
Data Analysis
6.90%
19.75% (+3,767%)
Data Science
0.51%
19.47% (+4,763%)
Amazon Web Services
0.40%
19.14% (+509%)
Agile Methodology
3.14%
17.37% (+216%)
Automation
5.50%
16.75% (+52%)
Java (Programming Language)
11.06% 2022
16.68% (+79%) 2010–12
Software Engineering
9.32%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Skill Share in AI Job Postings (%)
Figure 4.1.4
2 The point of comparison of 2010–2012 was selected because some data at the jobs/skills level is quite sparse in earlier years. Lightcast therefore used the
whole set of years 2010–2012 to get a larger sample size for a benchmark from 10 years ago to compare.
Chapter 4 Preview 8Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
U.S. AI Labor Demand by Sector fishing, and hunting), the number of AI job postings
Figure 4.1.5 shows the percentage of U.S. job was notably higher in 2022 than in 2021, with the top
postings that required AI skills by industry sector three sectors being information (5.3%); professional,
from 2021 to 2022. Across virtually every included scientific, and technical services (4.1%); and finance
sector (with the exception of agriculture, forestry, and insurance (3.3%).
AI Job Postings (% of All Job Postings) in the United States by Sector, 2021 Vs. 2022
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
5.30%
Information 4.85%
4.07%
Professional, Scienti c, and Technical Services 3.86%
3.33%
Finance and Insurance 2.94%
3.26%
Manufacturing 2.86%
1.64%
Agriculture, Forestry, Fishing, and Hunting 1.66%
1.53%
Educational Services 1.41%
1.37%
Management of Companies and Enterprises 1.08%
1.32%
Public Administration 0.98%
1.28%
Retail Trade 0.82%
1.27%
Utilities 1.10%
1.19%
Mining, Quarrying, and Oil and Gas Extraction 1.00%
0.98%
Wholesale Trade 0.82%
0.89%
Real Estate and Rental and Leasing 0.65%
2022
0.67%
Transportation and Warehousing 0.59% 2021
0.58%
Waste Management and Administrative Support Services 0.56%
0% 1% 2% 3% 4% 5%
AI Job Postings (% of All Job Postings)
Figure 4.1.5
Chapter 4 Preview 9Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
U.S. AI Labor Demand by State Number of AI Job Postings in the United States by State, 2022
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
Figure 4.1.6 highlights the number
of AI job postings in the United AK ME
970 2,227
States by state. The top three
VT NH MA
states in terms of postings were 1,571 2,719 34,603
California (142,154), followed by WA MT ND SD MN WI MI NY CT RI
31,284 833 1,227 2,195 11,808 8,879 25,366 43,899 8,960 2,965
Texas (66,624) and New York
(43,899). OR ID WY NE IA IL IN OH PA NJ
10,811 6,109 769 4,032 5,670 31,569 9,247 19,208 20,397 23,447
CA NV UT CO KS MO KY WV DC MD DE
142,154 6,813 6,885 20,421 7,683 10,990 4,536 887 9,606 16,769 3,503
AZ NM OK AR TN VA NC
19,514 3,357 5,719 7,247 11,173 34,221 23,854
TX LA MS AL GA SC
66,624 4,806 2,548 7,866 26,620 4,928
HI FL
2,550 33,585
Figure 4.1.6
Figure 4.1.7 demonstrates what Percentage of U.S. States Job Postings in AI, 2022
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
percentage of a state’s total job
postings were AI-related. The top AK ME
0.88% 1.64%
states according to this metric
VT NH MA
were the District of Columbia 1.34% 1.20% 2.26%
(3.0%), followed by Delaware WA MT ND SD MN WI MI NY CT RI
2.48% 0.72% 1.04% 1.83% 1.22% 0.90% 1.77% 2.07% 1.66% 1.84%
(2.7%), Washington (2.5%), and
Virginia (2.4%). OR ID WY NE IA IL IN OH PA NJ
1.43% 1.89% 1.18% 1.14% 1.14% 1.63% 0.88% 1.07% 1.30% 2.04%
CA NV UT CO KS MO KY WV DC MD DE
2.21% 1.23% 1.54% 1.46% 1.43% 1.15% 0.85% 0.99% 2.95% 1.96% 2.66%
AZ NM OK AR TN VA NC
1.40% 1.36% 1.07% 2.03% 1.11% 2.42% 1.44%
TX LA MS AL GA SC
1.52% 0.87% 1.15% 1.31% 1.64% 0.87%
HI FL
1.46% 1%
Figure 4.1.7
Chapter 4 Preview 10Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
Which states had the greatest Percentage of United States AI Job Postings by State, 2022
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
share of AI job postings as a
share of all AI job postings in AK ME
0.12% 0.28%
the U.S. in 2022? California was
VT NH MA
first: Last year 17.9% of all AI job 0.20% 0.34% 4.35%
postings in the United States WA MT ND SD MN WI MI NY CT RI
3.93% 0.10% 0.15% 0.28% 1.48% 1.12% 3.19% 5.52% 1.13% 0.37%
were for jobs based in California,
followed by Texas (8.4%) and OR ID WY NE IA IL IN OH PA NJ
1.36% 0.77% 0.10% 0.51% 0.71% 3.97% 1.16% 2.41% 2.56% 2.95%
New York (5.5%) (Figure 4.1.8). CA NV UT CO KS MO KY WV DC MD DE
17.87% 0.86% 0.87% 2.57% 0.97% 1.38% 0.57% 0.11% 1.21% 2.11% 0.44%
AZ NM OK AR TN VA NC
2.45% 0.42% 0.72% 0.91% 1.40% 4.30% 3%
TX LA MS AL GA SC
8.37% 0.60% 0.32% 0.99% 3.35% 0.62%
HI FL
0.32% 4.22%
Figure 4.1.8
Figure 4.1.9 highlights the trends over time in AI job postings for four select states that annually report a high
number of AI-related jobs: Washington, California, New York, and Texas. For all four, there was a significant
increase in the number of total AI-related job postings from 2021 to 2022, suggesting that across these states,
employers are increasingly looking for AI-related workers.
Percentage of U.S. States’ Job Postings in AI by Select U.S. State, 2010–22
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
2.50% 2.48%, Washington
2.21%, California
Percentage of U.S. States’ Job Postings in AI
2.07%, New York
2.00%
1.50% 1.52%, Texas
1.00%
0.50%
0.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.1.9
Chapter 4 Preview 11Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
Figure 4.1.10 highlights the degree to which AI-related job postings have been subdivided among the top
four states over time. California’s share of all AI job postings has decreased steadily since 2019 while Texas’
has marginally increased. The fact that California no longer commands one-quarter of all AI-related jobs
suggests that AI jobs are becoming more equally distributed among U.S. states.
Percentage of United States AI Job Postings by Select U.S. State, 2010–22
Source: Lightcast, 2022 | Chart: 2023 AI Index Report
25%
Percentage of United States AI Job Postings
20%
17.87%, California
15%
10%
8.37%, Texas
5.52%, New York
5%
3.93%, Washington
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.1.10
Chapter 4 Preview 12Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
AI Hiring in the same period the job began, divided by the total
number of LinkedIn members in the corresponding
Our AI hiring data is based on a LinkedIn dataset of skills
location. This rate is then indexed to the average
and jobs that appear on their platform. The countries
month in 2016; for example, an index of 1.1 in December
included in the sample make at least 10 AI hires each
2021 points to a hiring rate that is 10% higher than the
month and have LinkedIn covering at least 40% of
average month in 2016. LinkedIn makes month-to-
their labor force. India is also included in the sample
month comparisons to account for any potential lags in
given their increasing significance in the AI landscape,
members updating their profiles. The index for a year is
although LinkedIn does not cover 40% of their labor
the number in December of that year.
force. Therefore, the insights drawn about India should
be interpreted with particular caution.
The relative AI hiring index measures the degree to which
the hiring of AI talent is changing, more specifically
Figure 4.1.11 highlights the 15 geographic areas that
whether the hiring of AI talent is growing faster than,
have the highest relative AI hiring index for 2022. The
equal to, or more slowly than overall hiring in a particular
AI hiring rate is calculated as the percentage of LinkedIn
geographic region. In 2022, Hong Kong posted the
members with AI skills on their profile or working in
greatest growth in AI hiring at 1.4, followed by Spain, Italy
AI-related occupations who added a new employer
and the United Kingdom, and the United Arab Emirates.
Relative AI Hiring Index by Geographic Area, 2022
Source: LinkedIn, 2022 | Chart: 2023 AI Index Report
Hong Kong 1.37
Spain 1.19
Italy 1.18
United Kingdom 1.18
United Arab Emirates 1.15
South Africa 1.13
New Zealand 1.06
Denmark 1.06
Belgium 1.05
Netherlands 1.03
South Korea 1.02
Sweden 1.01
Canada 0.99
Switzerland 0.99
Singapore 0.99
0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40
Relative AI Hiring Index Figure 4.1.11
Figure 4.1.12 highlights how the AI hiring index changes over time for a wide range of countries3. Overall, the
majority of countries included in the sample have seen meaningful increases in their AI hiring rates since 2016.
This trend suggests that those countries are now hiring more AI talent than in 2016. However, for many countries,
AI hiring rates seem to have peaked around 2020, then dropped, and have since stabilized.
3 Both Figure 4.1.11 and Figure 4.1.12 report the Relative AI Hiring Index. Figure 4.1.11 reports the Index value at the end of December 2022, while Figure 4.1.12 reports a twelve-month rolling average.
Chapter 4 Preview 13Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
Relative AI Hiring Index by Geographic Area, 2016–22
Source: LinkedIn, 2022 | Chart: 2023 AI Index Report
Australia Belgium Brazil Canada
2.00 2.00 2.00 2.00
1.50 1.50 1.50 1.50
1.12 1.11 1.17
1.00 1.00 1.00 1.00 1.00
0.50 0.50 0.50 0.50
0.00 0.00 0.00 0.00
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Chile Denmark Finland France
2.00 2.00 2.00 2.00
1.50 1.50 1.50 1.50
1.14 1.08 1.19
1.00 1.05 1.00 1.00 1.00
0.50 0.50 0.50 0.50
0.00 0.00 0.00 0.00
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Germany Hong Kong India Ireland
Relative AI Hiring Index
2.00 2.00 2.00 2.00
1.50 1.50 1.50 1.50
1.13 1.21 1.08
1.00 1.00 1.00 0.94 1.00
0.50 0.50 0.50 0.50
0.00 0.00 0.00 0.00
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Israel Italy Luxembourg Netherlands
2.00 2.00 2.00 2.00
1.50 1.50 1.50 1.50
1.11 1.21
1.00 1.00 1.00 1.00 1.03 1.00
0.50 0.50 0.50 0.50
0.00 0.00 0.00 0.00
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
New Zealand Norway Portugal Singapore
2.00 2.00 2.00 2.00
1.50 1.50 1.50 1.50
1.09 1.10 1.01 1.13
1.00 1.00 1.00 1.00
0.50 0.50 0.50 0.50
0.00 0.00 0.00 0.00
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
South Africa South Korea Spain Sweden
2.00 2.00 2.00 2.00
1.50 1.50 1.50 1.50
1.10 1.05 1.12 1.09
1.00 1.00 1.00 1.00
0.50 0.50 0.50 0.50
0.00 0.00 0.00 0.00
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Switzerland United Arab Emirates United Kingdom United States
2.00 2.00 2.00 2.00
1.50 1.50 1.50 1.50
1.25 1.15
1.00 1.09 1.00 1.08 1.00 1.00
0.50 0.50 0.50 0.50
0.00 0.00 0.00 0.00
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Figure 4.1.12
Chapter 4 Preview 14Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.1 Jobs
rate of various countries or regions from 2015 to
AI Skill Penetration 2022. In this case, the relative AI skill penetration rate
The AI skill penetration rate is a metric created by
can be understood as the sum of the penetration of
LinkedIn that measures the prevalence of various
each AI skill across occupations in a given country or
AI-related skills across occupations. LinkedIn
region, divided by the global average across the same
generates this metric by calculating the frequencies
occupation. For instance, a relative skill penetration
of LinkedIn users’ self-added skills in a given area
rate of 1.5 means that the average penetration of AI
from 2015 to 2022, then reweighting those numbers
skills in that country or region is 1.5 times the global
with a statistical model to create the top 50
average across the same set of occupations.
representative skills in that select occupation.
As of 2022, the three countries or regions with the
Global Comparison: Aggregate highest AI skill penetration rates were India (3.2),
Figure 4.1.13 shows the relative AI skill penetration the United States (2.2), and Germany (1.7).
Relative AI Skill Penetration Rate by Geographic Area, 2015–22
Source: LinkedIn, 2022 | Chart: 2023 AI Index Report
India 3.23
United States 2.23
Germany 1.72
Israel 1.65
Canada 1.54
United Kingdom 1.54
South Korea 1.44
Singapore 1.37
France 1.13
Brazil 0.99
Spain 0.98
Netherlands 0.95
Italy 0.95
Switzerland 0.91
Australia 0.89
0.00 0.50 1.00 1.50 2.00 2.50 3.00
Relative AI Skill Penetration Rate
Figure 4.1.13
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Global Comparison: By Gender
Figure 4.1.14 disaggregates AI skill penetration rates pooled together across the same set of occupations
by gender across different countries or regions. in the country. For all countries in the sample, the
A country’s “Relative AI skill penetration rate relative AI skill penetration rate is greater for men
across genders” for women of 1.5 means that female than women. India (2.0), the United States (1.3), and
members in that country are 1.5 times more likely to Israel (0.9) have the highest reported relative AI skill
list AI skills than the average member in all countries penetration rates for women.
Relative AI Skill Penetration Rate Across Gender, 2015–22
Source: LinkedIn, 2022 | Chart: 2023 AI Index Report
3.27
India 1.99
2.36
United States 1.28
2.05
Israel 0.87
1.59
Canada 0.86
1.91
Germany 0.71
1.37
Singapore 0.68
1.46
United Kingdom 0.57
1.13
France 0.39
0.98
Netherlands 0.38
0.82
United Arab Emirates 0.31
0.85
Italy 0.31
0.98
Brazil 0.30
1.03
Spain 0.30
1.08 Male
Finland 0.29
Female
0.88
Australia 0.29
0.00 0.50 1.00 1.50 2.00 2.50 3.00
Relative AI Skill Penetration Rate
Figure 4.1.14
Chapter 4 Preview 16Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
Using data from NetBase Quid, this section tracks trends in AI-related investments. NetBase Quid tracks data on the investments of over
8 million global public and private companies. NetBase Quid also uses natural language processing techniques to search, analyze, and
identify patterns in large, unstructured datasets, like aggregated news and blogs, and company and patent databases. NetBase Quid
continuously broadens the set of companies for which it tracks data, so that in this year’s AI Index, the reported investment volume for
certain years is larger than that of previous reports.
4.2 Investment
Corporate Investment
As AI becomes more and more integrated into the For the first time since 2013, year-over-year global
economy, it becomes increasingly important to track corporate investment in AI has decreased. In 2022,
AI-related corporate investment. Figure 4.2.1 shows total global corporate AI investment was $189.6
overall global corporate investment in AI from 2013 billion, roughly a third lower than it was in 2021.
to 2022. Corporate investment includes mergers and Still, in the last decade, AI-related investment has
acquisitions, minority stakes, private investment, and increased thirteenfold.
public offerings.
Global Corporate Investment in AI by Investment Activity, 2013–22
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
300
Merger/Acquisition
Minority Stake 276.14
Private Investment
250 Public O ering
Total Investment (in Billions of U.S. Dollars)
119.66
200
189.59
150 146.74 83.35
26.06
100 95.57 46.06
125.36
79.62
31.91
21.89
53.72
50 91.86
33.82 24.68 61.61
25.43 43.1 55.09
19.04 13.05
14.57
17.13 25.72 29.1
13.35 12.62 13.01
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.2.1
Chapter 4 Preview 17Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
To provide a fuller context for the Top Five AI Merger/Acquisition Investment Activities, 2022
Source: NetBase Quid, 2022 | Table: 2023 AI Index Report
nature of AI investment in the last year,
Company Name Headquarters Focus Area Funding Amount
Figures 4.2.2 through 4.2.5 highlight Country (in Billions USD)
the top merger/acquisition, minority Nuance United States Arti cial Intelligence; 19.80
Communications, Inc. Enterprise Software;
stake, private investment, and public Healthcare; Machine
offering events in the last year. The Learning
greatest single AI investment event Citrix Systems, Inc. United States Data Management, 17.18
Processing, and Cloud;
was the merger/acquisition of Nuance HR Tech
Communications, valued at $19.8 billion Avast Limited Czech Republic Data Management, 8.02
Processing, and Cloud;
(Figure 4.2.2). The largest minority Fintech; Cybersecurity,
stake event was for the British company Data Protection
6.34
Aveva Group ($4.7 billion) (Figure 4.2.3). AspenTech United States Manufacturing;
Corporation Software; Supply
The greatest private investment event Chain Management
was GAC Aion New Energy Automobile Vivint Smart Home, United States Cybersecurity, Data 5.54
Inc. Protection; Sales
($2.5 billion), a Chinese clean energy Enablement
and automotive company (Figure 4.2.4).
Finally, the largest public offering was Figure 4.2.2
ASR Microelectronics ($1.1 billion),
a Chinese semiconductor company Top Five AI Minority Stake Investment Activities, 2022
Source: NetBase Quid, 2022 | Table: 2023 AI Index Report
(Figure 4.2.5).
Company Name Headquarters Focus Area Funding Amount
Country (in Billions USD)
AVEVA Group, PLC United Chemical; Computer; 4.68
Kingdom Data Mining; Electronics;
Industrial Manufacturing;
Information Technology;
Simulation; Software
Grupo de Colombia Financial Services; Impact 1.48
Inversiones Investing; Insurance
Suramericana, SA
Fractal Analytics India Analytics; Arti cial 0.35
Private Limited Intelligence; Big Data;
Business Intelligence;
Consulting; Machine
Learning
Atrys Health, SA Spain Medical and Healthcare 0.28
R Systems India Analytics; Information 0.17
International, Ltd. Technology; IT
Management; Software
Figure 4.2.3
Chapter 4 Preview 18Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
Top Five AI Private Investment Activities, 2022
Source: NetBase Quid, 2022 | Table: 2023 AI Index Report
Company Name Headquarters Focus Area Funding Amount
Country (in Billions USD)
GAC Ai´an New China Automotive; Clean 2.54
Energy Automobile Energy; Electric Vehicle;
Co., Ltd. Manufacturing
Idience Co., Ltd. South Korea Emergency Medicine; 2.15
Healthcare;
Pharmaceutical
Uali Argentina Drones; Cloud Computing 1.50
Anduril Industries, United States Cybersecurity, Data 1.50
Inc. Protection; AR/VR;
Drones
Celonis, GmbH Germany Retail; Industrial 1.22
Automation, Network; HR
Tech; Insurtech
Figure 4.2.4
Top Five AI Public O ering Investment Activities, 2022
Source: NetBase Quid, 2022 | Table: 2023 AI Index Report
Company Name Headquarters Focus Area Funding Amount
Country (in Billions USD)
ASR Microelectronics China Semiconductor; VC 1.08
Co., Ltd.
iSoftStone Information China Data Management, 0.73
Technology (Group) Processing, and Cloud;
Co., Ltd. Cybersecurity, Data
Protection
Jahez International Saudi Arabia Arti cial Intelligence; 0.43
Company for E-Commerce; Food and
Information Systems Beverage; Food Delivery;
Technology Information Technology;
Logistics
Fortior Technology China Electronics; Machine 0.30
(Shenzhen) Co., Ltd. Manufacturing;
Semiconductor
Beijing Deep Glint China Cybersecurity, Data 0.29
Technology Co., Ltd. Protection; Music, Video
Content
Figure 4.2.5
Chapter 4 Preview 19Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
Startup Activity
Global Trend
The next section analyzes private investment trends in The global private AI investment trend reveals that
artificial intelligence startups that have received over while investment activity has decreased since 2021, it
$1.5 million in investment since 2013. is still 18 times higher than it was in 2013 (Figure 4.2.6).
Private Investment in AI, 2013–22
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
120
Total Investment (in Billions of U.S. Dollars)
100
91.86
80
60
40
20
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.2.6
Chapter 4 Preview 20Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
A similar trend, of short-term decreases but longer- decrease from 2021 but a sixfold increase since 2013
term growth, is evident in data on total private (Figure 4.2.7). Similarly, the number of newly funded AI
investment events. In 2022 there were 3,538 AI- companies dropped to 1,392 from 1,669 last year, while
related private investment events, representing a 12% having increased from 495 in 2013 (Figure 4.2.8).
Number of Private Investment Events in AI, 2013–22
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
4,000
3,538
3,500
Number of Private Investment Events
3,000
2,500
2,000
1,500
1,000
500
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.2.7
Number of Newly Funded AI Companies in the World, 2013–22
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
1,600
1,392
1,400
1,200
Number of Companies
1,000
800
600
400
200
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.2.8
Chapter 4 Preview 21Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
The year-over-year decrease in AI-related AI Private Investment Events by Funding Size,
2021 Vs. 2022
funding is also evident when the funding events Source: NetBase Quid, 2022 | Table: 2023 AI Index Report
are disaggregated by size. Across all size Funding Size 2021 2022 Total
categories, with the exception of ones over Over $1 Billion 4 6 10
$500 Million – $1 Billion 13 5 18
$1 billion, the total number of AI funding events
$100 Million – $500 Million 277 164 441
decreased (Figure 4.2.9). $50 Million – $100 Million 277 238 515
Under $50 Million 2,851 2,585 5,436
Undisclosed 598 540 1,138
Total 4,020 3,538 7,558
Figure 4.2.9
Regional Comparison by Funding Amount
Once again, the United States led the world in terms of total AI private investment. In 2022, the $47.4 billion
invested in the United States was roughly 3.5 times the amount invested in the next highest country, China
($13.4 billion), and 11 times the amount invested in the United Kingdom ($4.4 billion) (Figure 4.2.10).
Private Investment in AI by Geographic Area, 2022
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
United States 47.36
China 13.41
United Kingdom 4.37
Israel 3.24
India 3.24
South Korea 3.10
Germany 2.35
Canada 1.83
France 1.77
Argentina 1.52
Australia 1.35
Singapore 1.13
Switzerland 1.04
Japan 0.72
Finland 0.61
0 5 10 15 20 25 30 35 40 45
Total Investment (in Billions of U.S. Dollars)
Figure 4.2.10
Chapter 4 Preview 22Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
When private AI investments are aggregated since 2013, the same ranking of countries applies:
The United States is first with $248.9 billion invested, followed by China ($95.1 billion) and the
United Kingdom ($18.2 billion) (Figure 4.2.11).
Private Investment in AI by Geographic Area, 2013–22 (Sum)
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
United States 248.90
China 95.11
United Kingdom 18.24
Israel 10.83
Canada 8.83
India 7.73
Germany 6.99
France 6.59
South Korea 5.57
Singapore 4.72
Japan 3.99
Hong Kong 3.10
Switzerland 3.04
Australia 3.04
Spain 1.81
0 20 40 60 80 100 120 140 160 180 200 220 240
Total Investment (in Billions of U.S. Dollars)
Figure 4.2.11
Chapter 4 Preview 23Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
While the United States continues to outpace The top five American AI private investment events
other nations in terms of private AI investment, are highlighted in Figure 4.2.13, the top five European
the country experienced a sharp 35.5% decrease Union and British investments in Figure 4.2.14, and the
in AI private investment within the last year (Figure top five Chinese investments in Figure 4.2.15.
4.2.12). Chinese investment experienced a similarly
sharp decline (41.3%).
Private Investment in AI by Geographic Area, 2013–22
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
70
60
Total Investment (in Billions of U.S. Dollars)
50
47.36, United States
40
30
20
13.41, China
10 11.04, European Union and United Kingdom
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.2.12
Chapter 4 Preview 24Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
Top AI Private Investment Events in the United Top AI Private Investment Events in the European
States, 2022 Union and United Kingdom, 2022
Source: NetBase Quid, 2022 | Table: 2023 AI Index Report Source: NetBase Quid, 2022 | Table: 2023 AI Index Report
Company Name Focus Area Funding Amount Company Name Focus Area Funding Amount
(in Billions USD) (in Billions USD)
Anduril Industries, Inc. Cybersecurity, Data 1.50 Celonis, GmbH Retail; Industrial 1.22
Protection; AR/VR; Automation, Network;
Drones HR Tech; Insurtech
Faire Wholesale, Inc. Fintech; Retail; Sales 0.82 Content Square, SAS Analytics; Arti cial 0.60
Enablement Intelligence: CRM:
Data Visualization;
Anthropic, PBC Arti cial Intelligence; 0.58 Digital Marketing;
Information SaaS
Technology; Machine
Learning Retail Logistics Excellence Retail 0.57
- RELEX Oy
Arctic Wolf Networks, Inc. Data Management, 0.40
Processing, and Cloud; Cera Care Limited Medical and 0.32
Cybersecurity, Data Healthcare
Protection
Babylon Holdings Limited Medical and 0.30
JingChi, Inc. Data Management, 0.40 Healthcare; Music,
Processing, and Cloud; Video Content
AV; AR/VR
Figure 4.2.14
Figure 4.2.13
Top AI Private Investment Events in China, 2022
Source: NetBase Quid, 2022 | Table: 2023 AI Index Report
Company Name Focus Area Funding Amount
(in Billions USD)
GAC Ai´an New Energy Automotive; Clean 2.54
Automobile Co., Ltd. Energy; Electric
Vehicle;
Manufacturing
GAC Ai´an New Energy Automotive; Clean 1.11
Automobile Co., Ltd. Energy; Electric
Vehicle;
Manufacturing
Beijing ESWIN Data Management, 0.58
Technology Group Co., Processing, and Cloud;
Ltd. Industrial Automation,
Network;
Semiconductor;
Marketing, Digital Ads;
Sales Enablement
Zhejiang Hozon New Data Management, 0.44
Energy Automobile Co., Processing, and Cloud;
Ltd. Cybersecurity, Data
Protection; Sales
Enablement
Zhejiang Hozon New Data Management, 0.32
Energy Automobile Co., Processing, and Cloud;
Ltd. Cybersecurity, Data
Protection; Sales
Enablement
Figure 4.2.15
Chapter 4 Preview 25Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
Regional Comparison by Newly Funded
AI Companies
This subsection studies the number of newly funded United States led all regions with the largest number of
AI companies across various geographic areas. newly funded AI companies at 542, followed by China
As was the case with private investment, the at 160 and the United Kingdom at 99 (Figure 4.2.16).
Number of Newly Funded AI Companies by Geographic Area, 2022
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
United States 542
China 160
United Kingdom 99
Israel 73
India 57
Canada 47
France 44
Germany 41
Singapore 36
Japan 32
Switzerland 26
Australia 23
South Korea 22
Sweden 12
Netherlands 12
0 100 200 300 400 500
Number of Companies
Figure 4.2.16
Chapter 4 Preview 26Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
A similar trend is evident in the aggregate data since 2013. In the last decade, the number of newly funded
AI companies in the United States is around 3.5 times the amount in China, and 7.4 times the amount in the
United Kingdom (Figure 4.2.17).
Number of Newly Funded AI Companies by Geographic Area, 2013–22 (Sum)
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
United States 4,643
China 1,337
United Kingdom 630
Israel 402
Canada 341
France 338
India 296
Japan 294
Germany 245
Singapore 165
South Korea 145
Australia 126
Switzerland 108
Sweden 83
Netherlands 78
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Number of Companies Figure 4.2.17
Figure 4.2.18 breaks Number of Newly Funded AI Companies by Geographic Area, 2013–22
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
700
down data on newly
funded AI companies
within select 600
geographic regions. 542,
United States
In a trend that goes 500
back a decade,
Number of Companies
the United States 400
continues to outpace
both the European 300 293,
European
Union and the United Union and
United Kingdom
Kingdom, as well as 200
160,
China. However, the China
growth rates of the 100
different regions are
relatively similar. 0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 4.2.18
Chapter 4 Preview 27Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
Focus Area Analysis Private Investment in AI by Focus Area, 2021 Vs. 2022
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
Private AI investment can also be disaggregated by Medical and Healthcare
Data Management, Processing, Cloud
focus area. Figure 4.2.19 compares global private Fintech
AI investment by focus area in 2022 versus 2021. Cybersecurity, Data Protection
Retail
The focus areas that attracted the most investment Industrial Automation, Network
Sales Enablement
in 2022 were medical and healthcare ($6.1 billion); Marketing, Digital Ads
AR/VR
data management, processing, and cloud ($5.9 Drones
Insurtech
billion); fintech ($5.5 billion); cybersecurity and Music, Video Content
data protection ($5.4 billion); and retail ($4.2 Semiconductor
HR Tech
billion). Mirroring the pattern seen in total AI private Energy, Oil, and Gas
AV
investment, the total investment across most focus NLP, Customer Support
Agritech
areas declined in the last year. Entertainment
Legal Tech
Geospatial
Fitness and Wellness
Ed Tech 2022
Facial Recognition 2021
VC
0 2 4 6 8 10
Total Investment (in Billions of U.S. Dollars)
Figure 4.2.19
Figure 4.2.20 presents trends in AI focus area cybersecurity and data protection, drones, marketing
investments. As noted earlier, most focus areas saw and digital ads, HR tech, AR/VR, and legal tech. Still,
declining investments in the last year. However, some mirroring a broader trend in AI private investment,
of the focus areas that saw increased investments are most focus areas saw greater amounts of AI private
semiconductor, industrial automation and network, investment in 2022 than they did in 2017.
Chapter 4 Preview 28Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
Private Investment in AI by Focus Area, 2017–22
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
Data Management, Processing, Cloud Medical and Healthcare Fintech AV
8 8 8 8
6 5.86 6 6.05 6 5.52 6
4 4 4 4
2 2 2 2 1.34
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Semiconductor Industrial Automation, Network Retail Fitness and Wellness
8 8 8 8
6 6 6 6
4 4 3.92 4 4.20 4
2 1.65 2 2 2
0.53
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
NLP, Customer Support Energy, Oil, and Gas Cybersecurity, Data Protection Drones
8 8 8 8
6 6 6 5.38 6
4 4 4 4
2 2 1.61 2 2 1.88
1.01
Total Investment (in Billions of U.S. Dollars)
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Marketing, Digital Ads HR Tech Facial Recognition Insurtech
8 8 8 8
6 6 6 6
4 4 4 4
3.05
2 2 1.63 2 2 1.74
0.07
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Agritech Sales Enablement AR/VR Ed Tech
8 8 8 8
6 6 6 6
4 4 4 4
3.18 2.39
2 2 2 2
0.87 0.37
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Geospatial Legal Tech Entertainment Music, Video Content
8 8 8 8
6 6 6 6
4 4 4 4
2 2 2 2 1.72
0.71 0.83 0.87
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
VC
8
6
4
2
0.02
0 Figure 4.2.20
2018 2020 2022
Chapter 4 Preview 29Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.2 Investment
Finally, 4.2.21 shows private investment in AI by focus area billion), and 40 times more than that in the European
over time within select geographic regions, highlighting Union and the United Kingdom ($0.04 billion). Chinese
how private investment priorities in AI differ across private investment in AI-related semiconductors ($1.02
geographies. For example, in 2022, private investment billion) was 1.75 times more than that in the United
in AI-related drone technology in the United States ($1.6 States ($0.58 billion), and 102 times more than that in the
billion) was nearly 53 times more than that in China ($0.03 European Union and the United Kingdom ($0.01 billion).
Private Investment in AI by Focus Area and Geographic Area, 2017–22
Source: NetBase Quid, 2022 | Chart: 2023 AI Index Report
Data Management, Processing, Cloud Medical and Healthcare Fintech AV
US, 3.13 US, 4.19 US, 3.23 US, 0.69
CN, 1.87 CN, 0.25 CN, 0.03 CN, 0.49
4 EU/UK, 0.24 4 EU/UK, 0.76 4 EU/UK, 0.94 4 EU/UK, 0.02
2 2 2 2
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Semiconductor Industrial Automation, Network Retail Fitness and Wellness
US, 0.58 US, 0.87 US, 1.52 US, 0.23
CN, 1.02 CN, 1.06 CN, 0.01 CN, 0.00
4 EU/UK, 0.01 4 EU/UK, 1.65 4 EU/UK, 2.07 4 EU/UK, 0.14
2 2 2 2
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
NLP, Customer Support Energy, Oil, and Gas Cybersecurity, Data Protection Drones
US, 0.69 US, 0.80 US, 3.87 US, 1.60
CN, 0.13 CN, 0.34 CN, 1.07 CN, 0.03
4 EU/UK, 0.04 4 EU/UK, 0.20 4 EU/UK, 0.23 4 EU/UK, 0.04
2 2 2 2
0 0 0 0
Total Investment (in Billions of U.S. Dollars)
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Marketing, Digital Ads HR Tech Facial Recognition Insurtech
US, 1.14 US, 0.24 US, 0.07 US, 0.39
CN, 0.88 CN, 0.00 CN, 0.00 CN, 0.00
4 EU/UK, 0.76 4 EU/UK, 1.28 4 EU/UK, 0.00 4 EU/UK, 1.29
2 2 2 2
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Agritech Sales Enablement AR/VR Ed Tech
US, 0.55 US, 1.12 US, 2.07 US, 0.12
CN, 0.10 CN, 1.68 CN, 0.01 CN, 0.01
4 EU/UK, 0.08 4 EU/UK, 0.16 4 EU/UK, 0.06 4 EU/UK, 0.10
2 2 2 2
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
Geospatial Legal Tech Entertainment Music, Video Content
US, 0.55 US, 0.71 US, 0.47 US, 1.10
CN, 0.03 CN, 0.05 CN, 0.18 CN, 0.03
4 EU/UK, 0.01 4 EU/UK, 0.06 4 EU/UK, 0.17 4 EU/UK, 0.44
2 2 2 2
0 0 0 0
2018 2020 2022 2018 2020 2022 2018 2020 2022 2018 2020 2022
VC
US, 0.00
CN, 0.00
4 EU/UK, 0.02
2
0 Figure 4.2.21
2018 2020 2022
Chapter 4 Preview 30Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.3 Corporate Activity
This section explores how corporations tangibly use AI. First, it highlights industry adoption trends and asks how businesses adopt
AI and what particular AI technologies they find most useful, and identifies how AI adoption affects their bottom line. Second, the
section considers industry motivations and explores what questions industry leaders consider when thinking about incorporating AI
technologies. Finally, it paints a qualitative picture of business AI use by examining trends in AI-related earnings calls.
4.3 Corporate Activity
Industry Adoption
Adoption of AI Capabilities
The following subsection on the industry adoption According to the most recent McKinsey report, as of
of AI borrows data from McKinsey’s “The State of 2022, 50% of surveyed organizations reported having
AI in 2022—and a Half Decade in Review,” as well adopted AI in at least one business unit or function
as previous years’ editions. The 2022 report drew on (Figure 4.3.1). This total is down slightly from 56% in
data from a survey of 1,492 participants representing 2021, although up significantly from 20% in 2017. AI
a wide range of regions, industries, company sizes, usage has rapidly grown in the past half-decade, but
functional specialties, and tenures. leveled off since 2020.
Share of Respondents Who Say Their Organizations Have Adopted AI in at Least One Function, 2017–22
Source: McKinsey & Company Survey, 2022 | Chart: 2023 AI Index Report
60%
50% 50%
40%
% of Respondents
30%
20%
10%
0%
2017 2018 2019 2020 2021 2022
Figure 4.3.1
Chapter 4 Preview 31Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.3 Corporate Activity
In the last half-decade, the average number of AI capabilities that organizations have embedded
has doubled from 1.9 in 2018 to 3.8 in 2022 (Figure 4.3.2). Some of the AI capabilities that McKinsey
features in their survey include recommender systems, NL text understanding, and facial recognition.4
Average Number of AI Capabilities That Respondents’ Organizations Have Embedded Within at Least One
Function or Business Unit, 2018–22
Source: McKinsey & Company Survey, 2022 | Chart: 2023 AI Index Report
4.00
3.80
3.50
Number of AI Capabilities (Average)
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2018 2019 2020 2021 2022
Figure 4.3.2
4 In the 2022 edition of the McKinsey survey, 16 total AI capabilities are considered: computer vision, deep learning, digital twins, facial recognition, GAN, knowledge graphs,
NL generation, NL speech understanding, NL text understanding, physical robotics, recommender systems, reinforcement learning, robotic process automation, transfer
learning, transformers, and virtual agents.
Chapter 4 Preview 32Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.3 Corporate Activity
The most commonly adopted AI use case in 2022 was service operations optimization (24%), followed
by the creation of new AI-based products (20%), customer segmentation (19%), customer service
analytics (19%), and new AI-based enhancement of products (19%) (Figure 4.3.3).
Most Commonly Adopted AI Use Cases by Function, 2022
Source: McKinsey & Company Survey, 2022 | Chart: 2023 AI Index Report
Service Operations Optimization 24%
Creation of New AI-Based Products 20%
Customer Segmentation 19%
Customer Service Analytics 19%
New AI-Based Enhancements of Products 19%
Customer Acquisition and Lead Generation 17%
Product Feature Optimization 16%
Contact-Center Automation 16% Service Operations
Product and/or
Risk Modeling and Analytics 15% Service Development
Marketing and Sales
Predictive Service and Intervention 14% Risk
0% 4% 8% 12% 16% 20% 24%
% of Respondents
Figure 4.3.3
Chapter 4 Preview 33Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.3 Corporate Activity
With respect to the type of AI capabilities embedded rates of embedding were 48%, 47%, and 46%. Across
in at least one function or business unit, as indicated all industries, the most embedded AI technologies
by Figure 4.3.4, robotic process automation had were robotic process automation (39%), computer
the highest rate of embedding within high tech/ vision (34%), NL text understanding (33%), and virtual
telecom, financial services and business, and legal agents (33%).
and professional services industries—the respective
AI Capabilities Embedded in at Least One Function or Business Unit, 2022
Source: McKinsey & Company Survey, 2022 | Chart: 2023 AI Index Report
All Industries 34% 30% 24% 18% 11% 25% 18% 23% 33% 20% 25% 20% 39% 16% 11% 33%
Business, Legal, and
32% 37% 31% 11% 8% 26% 12% 22% 34% 19% 23% 26% 46% 16% 11% 30%
Professional Services
Consumer Goods/
33% 36% 25% 19% 13% 18% 20% 11% 22% 24% 32% 19% 25% 7% 11% 40%
Industry
Retail
Financial Services 24% 22% 18% 24% 13% 29% 20% 30% 42% 14% 30% 19% 47% 17% 12% 33%
Healthcare Systems/
Pharma and 32% 18% 16% 5% 5% 14% 5% 12% 29% 11% 16% 13% 16% 9% 6% 14%
Med. Products
High Tech/Telecom 37% 45% 24% 16% 15% 23% 24% 29% 40% 15% 34% 23% 48% 22% 15% 43%
C
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Figure 4.3.4
Chapter 4 Preview 34Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.3 Corporate Activity
Figure 4.3.5 shows AI adoption by industry and AI function in 2022. The greatest adoption was in risk for high
tech/telecom (38%), followed by service operations for consumer goods/retail (31%) and product and/or service
development for financial services (31%).
AI Adoption by Industry and Function, 2022
Source: McKinsey & Company Survey, 2022 | Chart: 2023 AI Index Report
All Industries 11% 8% 5% 10% 19% 19% 21% 9%
Business, Legal, and
11% 10% 9% 8% 16% 20% 19% 12%
Professional Services
Consumer Goods/
14% 4% 3% 4% 15% 31% 29% 11%
Retail
Industry
Financial Services 1% 8% 7% 31% 17% 24% 23% 2%
Healthcare Systems/
Pharma and 15% 7% 2% 4% 22% 12% 8% 8%
Med. Products
High Tech/Telecom 6% 6% 4% 7% 38% 21% 25% 8%
Hu Ma Ma Pro Ris Se Str Su
rv p
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nu
fa
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eso ctu ng rvi
c an Op rpo y a na Ch
urc rin
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an
dS e D d/o era rat nd ge a
me in
es ev r tio eF nt
ale elo ns ina
s pm nce
en
t
% of Respondents (Function)
Figure 4.3.5
Chapter 4 Preview 35Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.3 Corporate Activity
Figure 4.3.6 shows how rates of AI adoption by points); followed by high tech/telecom, for risk
industry and AI function vary from 2021 to 2022 (22 percentage points). The most significant
in order to demonstrate how rates of AI adoption decreases were in high tech/telecom, for product
have changed over the last year. The greatest year- and/or service development (38 percentage points);
over-year increases were in consumer goods/retail, and healthcare systems, also for product and/or
for strategy and corporate finance (25 percentage service development (25 percentage points).
Percentage Point Change in Responses of AI Adoption by Industry and Function 2021 Vs. 2022
Source: McKinsey & Company Survey, 2022 | Chart: 2023 AI Index Report
All Industries 2% -4% -15% -13% 6% -6% 12% -4%
Business, Legal, and
-3% 2% -19% -7% 3% -6% 11% -1%
Professional Services
Consumer Goods/
12% -14% -19% -13% 14% 16% 25% -7%
Retail
Industry
Financial Services -9% 4% -17% 11% -15% -16% 10% -6%
Healthcare Systems/
Pharma and 6% -4% -12% -25% 9% -5% -4% -1%
Med. Products
High Tech/Telecom -6% -5% -24% -38% 22% -13% 15% -8%
Hu Ma Ma Pro Ris Se Str Su
rv p
ma
nR
nu
fa
rke
ti Se duct k ice Co ateg Ma ply-
eso ctu ng rvi
ce a nd Op rpo y a na Ch
urc rin
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an
dS De /or era rat nd ge a
me in
es ve tio eF nt
ale lop ns ina
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Percentage Point Change in Responses (Function)
Figure 4.3.6
Chapter 4 Preview 36Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.3 Corporate Activity
Organizations report AI adoption leading to both (Figure 4.3.7). On the revenue side, the functions that
cost decreases and revenue increases. On the cost most respondents saw increases in as a result of AI
side, the functions that most respondents saw adoption were marketing and sales (70%), product
decreases in as a result of AI adoption were supply and/or service development (70%), and strategy and
chain management (52%), service operations (45%), corporate finance (65%).
strategy and corporate finance (43%), and risk (43%)
Cost Decrease and Revenue Increase From AI Adoption by Function, 2021
Source: McKinsey & Company Survey, 2022 | Chart: 2023 AI Index Report
Decrease by 10% Increase by 6–10% Increase by ≤5%
Service Operations 45% 29% 10% 6% 10% 10% 37% 57%
Manufacturing 42% 32% 7% 10% 18% 33% 61%
Human Resources 29% 25% 14% 13% 31% 58%
Marketing and Sales 28% 21% 9% 20% 41% 70%
Function
Risk 43% 30% 8% 10% 11% 27% 48%
Supply Chain Management 52% 41% 7% 14% 17% 28% 59%
Product and/or Service Development 30% 20% 6% 13% 24% 33% 70%
Strategy and Corporate Finance 43% 31% 8% 8% 16% 41% 65%
Average Across All Activities 32% 23% 8% 19% 36% 63%
% of Respondents
Figure 4.3.7
Chapter 4 Preview 37Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.3 Corporate Activity
Figure 4.3.8 shows AI adoption by organizations across all geographies was 50%, down 6% from 2021.
globally, broken out by regions of the world. In 2022, Notably, “Greater China” registered a 20 percentage
North America led (59%), followed by Asia-Pacific point decrease from 2021.
(55%) and Europe (48%). The average adoption rate
AI Adoption by Organizations in the World, 2021 Vs. 2022
Source: McKinsey & Company Survey, 2022 | Chart: 2023 AI Index Report
50%
All Geographies
56%
55%
Asia-Paci c
64%
48%
Europe
51%
59%
North America
55%
Greater China 41%
(incl. Hong Kong,
Taiwan) 61%
Developing Markets 2022
(incl. India, 44%
2021
Latin America, 52%
MENA)
0% 10% 20% 30% 40% 50% 60%
% of Respondents
Figure 4.3.8
Chapter 4 Preview 38Artificial Intelligence Chapter 4: The Economy
Index Report 2023 4.3 Corporate Activity
Consideration and Mitigation of Risks From risks were regulatory compliance (45%), personal/
Adopting AI individual privacy (40%), and explainability (37%).
As has been the case in the last few iterations of the The least salient risks identified by organizations were
McKinsey report, in 2022 respondents identified national security (13%) and political stability (9%).
cybersecurity as the most relevant risk when adopting
AI technology (59%) (Figure 4.3.9). The next most cited
Risks From Adopting AI That Organizations Consider Relevant, 2019–22
Source: McKinsey & Company Survey, 2022 | Chart: 2023 AI Index Report
60% 59%, Cybersecurity
50%
45%, Regulatory Compliance
% of Respondents
40% 40%, Personal/Individual Privacy
37%, Explainability
32%, Organizational Reputation
30% 30%, Equity and Fairness
28%, Workforce/Labor Displacement
20% 20%, Physical Safety
13%, National Security
10%
9%, Political Stability
0%
2019 2020 2021 2022
Figure 4.3.9
Chapter 4 Preview 39You can also read
