Our primer on artificial intelligence (AI)! To help those who want a basic understanding of AI, its primary attributes and future trends, you can read through our deck here!
SparkLabs
Group
Since 2013, SparkLabshas
invested in over 600 startups
with a $56 billion in total post
money valuation.
The Korea Association of Health
partnered with SparkLabs to
operate MediOpenLab in 2024 and
beyond. SparkBioLab and its
portfolio companies will have
access to MediCheck service's
data from over 2 million health
check-ups every year.
Google chose SparkLabs Korea
to jointly operate a Green Tech
Accelerator in Busan, South
Korea from 2021 to 2022.
Facebook selected SparkLabs
Korea to run their Innovation Lab
Korea from 2018 to 2019.
SparkLabs Group was the only
venture capital firm (or any
investment company) in the world
to be recognized in Newsweek’s
2019 Top 100 Smart City Partners
Awards
3.
SparkLabs
Group
SparkLabs has been
investingin AI since
2016. We are investors in
OpenAI, Vectara,
Kneron, Anthropic,
Lucidya, xAI and others.
One of nine investment
firms invited to
participate in OpenAI’s
recent fundraising round
that closed in January
2024.
SparkLabs Group has a
partnership with UMG,
the world’s leading
music company with
presence in more than
60 territories, to scout
and develop the next
wave of digital music
startups in Asia.
As of Dec 2024, we
have invested in 323
startups through its
accelerator programs
across the globe. 280
have survived or were
successful exits,
which is a survival
rate of 86.7% since
2013. This is
testament to the
team’s dedication to
our startup founders.
4.
Alison Gopnik
Cognitive Scientist
“Oneof the fascinating things about the search for AI is that
it’s been so hard to predict which parts would be easy or hard.
At first, we thought that the quintessential preoccupations of
the officially smart few, like playing chess or proving
theorems—the corridas of nerd machismo—would prove to
be hardest for computers. In fact, they turn out to be easy.
Things every dummy can do, like recognizing objects or
picking them up, are much harder. And it turns out to be
much easier to simulate the reasoning of a highly trained
adult expert than to mimic the ordinary learning of every baby.”
Artificial Intelligence (AI)technology
represents one of the most
transformative innovations of the 21st
century, reshaping the way we interact
with machines, process information,
and solve complex problems. At its
core, AI involves the creation of
algorithms and systems capable of
performing tasks that typically require
human intelligence, such as learning,
reasoning, problem-solving, and
understanding natural language. From
self-driving cars to personalized
recommendations, AI's applications
are vast and varied, influencing
industries as diverse as healthcare,
finance, manufacturing, and
entertainment. It will eventually
touch every aspect of our lives in the
coming decade.
7.
The rapid advancementsin AI technology are driven by breakthroughs in machine
learning, deep learning, natural language processing, and computer vision. These
advancements enable machines to not only process vast amounts of data but also to
adapt and improve their performance over time. As AI continues to evolve, it raises
profound questions about the future of work, ethics, and societal impacts.
Understanding the foundations, current capabilities, and potential future
developments of AI is essential for anyone seeking to navigate the opportunities and
challenges posed by this cutting-edge technology.
8.
“AI models areadvancing at an extraordinary pace, but turning
that raw capability into real economic value is only just
beginning. There’s a vast and complex gap between what
these models can theoretically do and what it takes to actually
deliver production-grade outcomes. Bridging that gap is
where the opportunity lies, and it’s where we’re seeing some of
the most impactful innovation today. Whether it’s working with
companies like Ramp, Webflow, or HubSpot, the lesson is
clear: applying AI effectively requires deep integration,
rigorous calibration, and thoughtful design.
At AirOps, we’re focused on helping enterprise content teams
drive visibility in AI-powered search experiences like ChatGPT
and Google AI by managing content at scale, because the
future of discovery is conversational, and those who show up
well in those interfaces will win.”
Alex Halliday
Founder & CEO at AirOps
Former VP of Product at
Bungalow
Former Head of Product at
MasterClass
Venture Partner at SparkLabs
Global Ventures
9.
Timeline of MajorAI Milestones
From Foundational Ideas to Frontier Models (1950-2025)
by SparkLabs Group
10.
The building blocksof Artificial Intelligence (AI) are the foundational components and
technologies that enable AI systems to function effectively. These include:
DATA
Data is the fuel for AI systems. Large volumes of structured and unstructured data are
required to train AI models. This data can include text, images, audio, video, and sensor
data, among others.
Importance: The quality, quantity, and diversity of data directly impact the performance
and accuracy of AI systems.
11.
Algorithms
Algorithms are themathematical procedures or sets of rules that AI systems use to process
data and make decisions. They include various types of models, such as machine learning
algorithms, deep learning models, and reinforcement learning frameworks.
Importance: Algorithms determine how AI systems learn from data and how they generalize
to new, unseen data.
12.
Machine Learning
Machine Learning(ML) is a subset of AI that focuses on developing algorithms that enable
computers to learn from data and improve their performance over time without being
explicitly programmed.
Importance: ML is the backbone of modern AI, allowing systems to identify patterns, make
predictions, and adapt to new information.
Neural Networks
Neural networks are a key component of deep learning, a subset of machine learning.
Inspired by the human brain, neural networks consist of interconnected layers of nodes
(neurons) that process data in complex ways to recognize patterns and make decisions.
Importance: Neural networks are essential for tasks such as image and speech recognition,
natural language processing, and more complex decision-making processes.
13.
Natural Language
Processing (NLP)
NLPis a field of AI that focuses on
the interaction between
computers and human language.
It involves the development of
algorithms that allow machines to
understand, interpret, and
generate human language.
Importance: NLP is crucial for
applications such as chatbots,
language translation, sentiment
analysis, and voice-activated
assistants.
14.
Computer Vision
Computer visionenables machines to interpret and make
decisions based on visual data, such as images and videos. It
involves techniques for image recognition, object detection, and
image segmentation.
Importance: Computer vision is vital for applications like
autonomous vehicles, facial recognition, and medical imaging.
15.
Ethical and RegulatoryFrameworks
These frameworks guide the responsible development and deployment of AI, addressing
issues such as bias, fairness, transparency, and accountability.
Importance: As AI becomes more integrated into society, ensuring that it is developed
and used ethically is critical for gaining public trust and preventing harm.
16.
On regulation…
“I believewe should be very slow to regulate AI and very
mindful of the 2nd and 3rd order effects that could come from
any regulations we enact. Many of the potential harms
of AI are already addressable under existing laws. We
shouldn't just start regulating everything without knowing why
we're doing it. It will become very clear over time what new
problems arise that actually need new regulations.”
Advances for AI over the next 3 years…
“Major improvements in LLM memory will occur, and they will
have access to your files. I expect we'll have a version of
ChatGPT that has access to all your files and remembers
everything you've said before, making AI an incredibly
powerful personal assistant.”
Nathan Lands
Founder & CEO at Lore
Co-Creator & Host at The Next Wave
Podcast
Venture Partner at SparkLabs AI
17.
Computing Power
Advanced AIsystems require significant computational resources to process large datasets
and perform complex calculations. This is provided by powerful processors, GPUs (Graphics
Processing Units), and distributed computing systems.
Importance: The availability of high-performance computing power enables the training
and operation of sophisticated AI models.
Together, these building blocks form the foundation of AI technology, enabling the creation
of systems that can learn, reason, perceive, and interact in ways that were once the
exclusive domain of humans.
18.
“Getting computers tounderstand and find human
knowledge has always been a challenge. Legacy keyword
search systems are inflexible and require rich knowledge
graphs + language rules to work well, which makes them
very expensive to build / maintain. The new generation of
Gen AI algorithms allow us to understand and find
information semantically across languages, which leads to
much more powerful systems at significantly lower costs.
At Vectara we specialize in making RAG work smoothly with
high quality results and reduced hallucinations. We also
address a number of other regulated industry
requirements like access control, explainability, data privacy,
and many others.”
Amr Awadallah
Co-Founder & CEO at Vectara.
Co-Founder & former Chief
Technology Officer at Cloudera
(multi-billion dollar IPO)
Advisor at SparkLabs Saudi Arabia &
SparkLabs AI
19.
The Three Typesof AI
From Narrow to Superintelligence
Al that specializes in a
single task (e.g.,
language translation,
facial recognition).
ARTIFICIAL NARROW
INTELLIGENCE (ANI)
Al with the ability to
understand, learn, and
apply knowledge across
a wide range of tasks
like a human.
ARTIFICIAL GENERAL
INTELLIGENCE (AGI)
Al that surpasses human
intelligence in all
aspects, including
creativity, problem-
solving, and emotions.
ARTIFICIAL
SUPERINTELLIGENCE (ASI)
20.
Artificial General Intelligence(AGI) is generally believed to be 5 or more years away from
becoming a reality. But this is often a moving target when asking various “experts” such as Elon
Musk who recently said it will be achieve by the end of 2026.
Three Types of Artificial Intelligence
Estimates to Achieving Artificial Superintelligence (ASI)
Estimated Time of Arrival
Ray Kurzweil (futurist) Approximately by 2045 (Singularity prediction)
Elon Musk ASI could come within 5–10 years, if unchecked
Demis Hassabis (DeepMind) AGI is achievable within a decade, ASI afterwards
OpenAI researchers (2023 survey) 10–50 years, median estimate around 30 years
Kree Supreme Intelligence (Marvel Comics)
21.
AI Lifecycle
The AIlifecycle is a structured, iterative process guiding the development, deployment, and maintenance
of AI systems. It begins with the Design Phase, where the problem is clearly defined, relevant
stakeholders are engaged, and data is collected, explored, and prepared. This foundational stage ensures
alignment with business objectives, feasibility, and ethical considerations.
Next is the Develop Phase, where AI models are built and evaluated. This includes choosing the right
algorithm, designing model architecture, training with high-quality data, and assessing performance using
appropriate metrics. Techniques such as regularization, hyperparameter tuning, and cross-validation are
applied to optimize results.
The final stage is Deploy Phase,
where the trained model is
integrated into production
environments. Here, the model is
exposed to real-world data and
continuously monitored to detect
drift, performance degradation, or
anomalies. This lifecycle ensures AI
solutions remain effective, secure,
and aligned with organizational
goals, while enabling retraining and
updates as needed through
feedback loops.
22.
Basic Computing ofArtificial Intelligence
WHAT IS A TENSOR?
A tensor is a mathematical object that can be viewed as an array of data. The rank of a tensor simply refers to the
number of dimensions in the array. In the context of data science, tensors are multi-dimensional arrays of numbers
that represent complex data. They are the fundamental data structures used in machine learning and deep learning
frameworks.
DEFINITION OF A TENSOR
In a strict mathematical sense, a tensor is a multilinear mapping over a set of domain vector spaces to a range
vector space. However, in machine learning, the term "tensor" informally refers to two different concepts that
organize and represent data. Data may be organized in a multidimensional array (M-way array) that is informally
referred to as a "data tensor". This data can be analyzed using artificial neural networks or tensor methods.
APPLICATIONS OF TENSORS
Tensors are particularly useful for handling complex data such as images, audio, and text. For example, a color
image can be represented as a 3D tensor with dimensions corresponding to height, width, and color channels (red,
green, and blue). Similarly, a video can be represented as a 4D tensor with time being the additional dimension.
23.
Let’s create anexample of the above
content through natural language
processing.
Hi King
Hi Queen
Hi Jack
When there are words, the word is
expressed in vector by one-hot encoding
as follows
Since the word is expressed as a vector, it
seems that the sentence can be expressed
as a matrix based on the vector of the
word.
Example
The sentence is expressed as a matrix as above. However, we usually input a corpus as input to
the neural network, and the corpus can be expressed as follows:
hi king hi queen hi jack [ [[1,0,0,0], [0,1,0,0] ], [[1,0,0,0], [0,0,1,0]] , [[1,0,0,0], [0,0,1,0]] ]
The words in the above corpus are composed of 4 dimensions. Each sentence is composed of 2
words. Since there are a total of 3 sentences, this model can be considered as a 3-dimensional
tensor of size (3, 2, 4)
Basic Computing of Artificial Intelligence
24.
When extracting objectssuch as
people, animals, and objects from
an image, a huge number of
convolutions (overlapping integrals)
occur. The convolution operation
itself consists of a very large number
of multiplications.
Convolution
A key operation required for Al inference or learning is tensor convolution (overlapping integral) operation. This
convolution operation allows us to roughly determine the shape of the border in the image along the direction
specified by the filter. In deep learning, this task is called feature extraction (a method of distinguishing objects using
a pattern recognition algorithm). The learning process of a deep learning model involves modifying the weight of
each filter to make the feature map (resulting value resulting from the calculation) through multiple convolution
operations as similar to the correct answer as possible.
25.
“Game AI hasbeen stuck in the past for decades. Traditional
systems rely on rigid scripts and predetermined responses,
but modern AI unlocks something fundamentally different:
characters that think, adapt, and form genuine connections
with players. At Glade, we're building the infrastructure to
make this possible at scale.
Our flagship product, GladeCore, is a lightweight, on-device
AI system that eliminates cloud dependency, delivering
ultra-low latency AI characters with zero variable costs
and no privacy concerns for developers. It's battle-tested
in our award-winning game Cursed Crown, and we're
now helping other studios create the next generation of
truly intelligent games.”
Daniel Fang
Founder & CEO at Glade (YC S23)
26.
CPU vs GPUvs NPU
The fundamental difference between CPU, GPU and TPU is the way these circuits are engineered and the way
they process the instructions. The below diagram explains how these three chips do arithmetic calculations.
CPU which is designed to handle scalar calculations can do 1x1 data unit. On the other hand, GPUs are
specifically designed to do vector calculations that is 1xN data unit. NPU does tensor calculations which can go
up to NxN calculations. When we look from the no. of operations these chips can handle, CPU can handle tens of
operation per cycle while GPU can handle tens of thousands of operation per cycle and NPU can handle up to
128000 operations per cycle.
CPU: Parallelized
scalar multiplication
GPU: Parallelized
vector multiplication
NPU: Parallelized
tensor multiplication
27.
The Advantages ofUsing NPUs
NPUs are faster and more cost-effective than GPUs
The tensor processing capabilities of NPUs are specifically designed for
efficient execution of tensor operations, leveraging specialized tensor cores to
accelerate the computation of deep learning models. While CPUs and GPUs
can also perform these operations, NPUs complete them much faster and
with significantly lower energy costs
Enhanced Memory, Reduced Power Use, and Smaller Size
The NPU is specifically designed for artificial intelligence and machine
learning tasks. This memory is integrated within the NPU chip itself, which
helps reduce data transfer times and lower power consumption compared to
systems that use external memory.
Additionally, the efficient use of memory space allows for smaller chip designs.
These features enable faster and more efficient AI processing through NPUs.
The compact form factor also makes NPUs particularly well-suited for use in
on-device AI applications, such as smartphones and AR/VR devices.
SAPEON’s NPU outperformed GPUs in the
MLPerf AI Datacenter Benchmark Test
Source: SAPEON’s X330 AI NPU
Inference Chips are Now More Important Than Learning Chips
In particular, NPUs are becoming increasingly important in the inference
market. At the point of launching AI services, what matters most for service
companies is no longer chips designed for learning; instead, the focus has
shifted to chips for inference.
The applications being developed are diverse, including image generation,
disease detection (such as cancer and tumors), and assessments of loan
repayment capabilities. The use of specialized inference chips tailored to each
application inevitably improves the quality of the services provided.
28.
Data
Without data, you'rejust another person with an opinion. Data
is the foundation of modern artificial intelligence, enabling
machines to learn, adapt, and make informed decisions. AI
systems require vast amounts of structured and unstructured
data, including text, images, audio, and sensor readings, to
function effectively. High-quality data enhances model
accuracy, while insufficient or biased data can lead to poor
performance. From training large language models to enabling
real-time decision-making, data serves as the fuel that powers
innovation, personalization, and automation in AI.
Synthetic Data: A Solution to Data Limitations
AI systems rely heavily on vast amounts of high-quality data to perform effectively. However, real-world data is often
constrained by privacy regulations, high acquisition costs, and limited availability—particularly in sensitive sectors like
healthcare and finance. To overcome these challenges, synthetic data has emerged as a promising alternative.
Generated through algorithms rather than collected from real-world events, synthetic data can closely mimic the
statistical properties of real data without compromising individual privacy.
It is increasingly used to augment training in fields like autonomous driving, natural language processing, and medical
imaging, especially where data is scarce or sensitive. Synthetic data enables customizable, diverse datasets and allows
simulation of rare or risky scenarios. However, its utility depends on quality, realism, and variability. Poorly generated
data may reduce model performance, and validation against real data remains essential. As tools advance, synthetic
data will play a growing role in scalable and ethical AI development.
The global artificialintelligence (AI) market has seen unprecedented growth over the past decade, driven by
rapid technological advancements and increasing investment. AI is transforming industries by enhancing
efficiency, automating processes, and enabling data-driven decision-making. As businesses and governments
continue to adopt AI solutions, the market is expected to expand further, shaping the future of innovation and
economic development.
Global AI market
Introduction to theGlobal AI Market
Artificial Intelligence (AI) has experienced exponential growth, driven by rapid advancements in machine learning,
robotics, and automation. As industries increasingly integrate AI-driven solutions, the market is expanding at an acc
elerating pace, with key sectors like machine learning, natural language processing, and autonomous systems lea
ding the way. The adoption of AI is no longer confined to tech companies—industries such as healthcare, finance,
manufacturing, and transportation are leveraging AI to enhance efficiency and innovation. With continuous invest
ment and breakthroughs in AI hardware and software, the global AI market is expected to sustain its upward traject
ory, reshaping economies and industries in the years to come.
33.
Global AI market
Drivers
•The market is experiencing growth due to an increasing demand for faster and more reliable hardware, prompted
by the vast quantities of data generated daily.
• The necessity for highly parallel architectures and specialized hardware to manage high-performance
computations essential for neural network operations is fostering the adoption of accelerators in the market.
• The extensive integration of artificial intelligence software in various industries, which enhances business
processes, improves decision-making efficiency, and drives innovation, is contributing significantly to market
expansion.
• The escalating requirement for expert guidance and comprehensive support in deploying and utilizing artificial
intelligence solutions is boosting the demand for professional services within the market.
• The importance of support and maintenance services is growing, driven by their role in ensuring the long-term
success of artificial intelligence initiatives across various businesses.
34.
Global AI market
Theartificial intelligence (AI) market is categorized by three primary offerings: hardware, software, and services. Each
segment addresses different facets of AI needs and contributes to the overall expansion of the artificial intelligence
market.
AI Market Segmentation
Hardware: This segment includes accelerators,
processors, memory, and network components.
Processors are further divided into microprocessor
units, graphics processing units, field-programmable
gate arrays, and other types of processors. The
demand for advanced hardware that mimics the
intelligence and efficiency of the human brain is a
significant driver for growth in this segment.
Software: The software sector of the AI market is
segmented by type and deployment method.
Software types include pre-trained models,
customizable AI solutions, edge AI, and AI
marketplaces. Deployment methods are categorized
into cloud-based and on-premises solutions.
Services: This offering is split into professional and
managed services. Professional services encompass
consulting, deployment and integration, as well as
support and maintenance services.
and architectural designsto meet
the growing processing
requirements of artificial
intelligence systems.
This competition in the market has
led to continuous product launches
and advancements in hardware
development and software
platforms for machine learning
algorithms and programs. The
artificial intelligence hardware
market is projected to experience
significant growth, driven by the
increasing need for high-
performance hardware platforms
capable of running complex
artificial intelligence software. The
presence of major artificial
intelligence companies in North
America has positioned the region
as a key market for AI-related
hardware.
Global AI market
The artificial intelligence market has been segmented, by hardware, into accelerators, processors, memory, and network. The
demand for faster and more reliable hardware in the field of AI is increasing due to the massive amount of data being generated
daily. Established companies such as Intel, IBM, NVIDIA, and Samsung, as well as startups, are actively developing new hardware
Hardware
Source: Grand View Research
37.
”Material handling applicationsare increasingly adopting
automation to address global labor shortages. AI is
pivotal in unlocking solutions to previously unsolved
automation challenges across the supply chain—from
factories and large regional distribution centers to smaller
warehouses.
One of the key untapped problems, the loading and
unloading of truck trailers, can now be addressed thanks
to recent AI advancements. Gideon revolutionizes the
loading and unloading bay with autonomous forklifts,
leveraging AI for human-like perception and real-world
execution.”
Josip Cesic
Co-founder & CEO at Gideon
*Gideon raised $48 million from Toyota
Industries, Prologis Ventures, Koch
Disruptive Technologies, DB Schenker,
Taavet Hinrikus (Co-founder of
TransferWise) and others.
38.
The artificial intelligencemarket for hardware has been segmented, by processor, into graphics processing units (GPUs),
microprocessing units (MPUs), field programmable gate arrays (FPGAs), and other processors. The adoption of processors in the
field of AI has witnessed significant growth as AI applications continue to advance. GPUs, known for their parallel processing
Global AI market
capabilities, have become a
popular choice for accelerating
AI workloads. They offer high
performance and efficient
execution of complex algorithms.
MPUs and FPGAs are also being
widely adopted in AI, providing
specific advantages such as
flexibility and power efficiency.
The increasing demand for AI-
driven solutions and the need for
faster processing speeds have
driven the adoption of these
processors. As AI continues to
evolve, processors play a vital
role in enabling the development
and deployment of advanced AI
models and applications.
Processors
Source: Grand View Research
“With the explosivegrowth of AIGC, global demand for cloud
AI computing has surged, placing immense pressure on energy
infrastructure and carbon neutrality. As multimodal AIGC
expands, challenges like latency, bandwidth, and privacy
will increasingly limit the use of cloud AIGC. The shift of AI
compute from the cloud to the edge is an inevitable trend.
Kneron focuses on creating efficient edge AI inference chips
that use less power and cost less. We have successfully
launched a range of edge AI products across key industries
including security, autonomous driving, and consumer
electronics, leading in several specialized markets. Our next
milestone is to launch next-generation chips that run complex
AIGC models locally—enabling faster, more secure, and energy-
efficient AI experiences.”
Albert Liu
Co-Founder & CEO at Kneron
*Kneron has raised over $200
million from Sequoia China,
Qualcomm, Horizon Ventures,
Foxconn and others.
45.
Global AI market
Microchips
Nvidia’sDominance in the GPU Market
The GPU (Graphics Processing Unit) market is a rapidly evolving segment of the semiconductor industry, playing
the leading role in artificial intelligence (AI). NVIDIA’s dominance in the GPU market is the result of a multi-decade
strategy that combined its early bets on AI, technical foresight, and an integrated software ecosystem.
Source: IoT Analytics
46.
Astera Labs &AI Connectivity
Astera Labs specializes in high-speed connectivity solutions for AI cloud data centers, ensuring seamless AI
infrastructure performance. Their Intelligent Connectivity Platform accelerates data transfer speeds, enhancing AI
chip efficiency.
Advantages
By improving AI chip-to-chip connectivity, Astera
Labs optimizes data movement across AI
infrastructures. This reduces bottlenecks in AI
workloads, ensuring efficient scaling for next-
generation AI applications.
Market Impact
Astera Labs' IPO in 2024 saw shares surge by
over 70%, reflecting strong investor confidence
in AI semiconductor infrastructure. With a
valuation exceeding $16 billion, the company is
positioned as a key player in AI hardware despite
not yet reaching profitability.
Global AI market
Microchips
47.
SK Hynix’s HBM:Powering AI's Future
High Bandwidth Memory (HBM) is essential for AI acceleration, offering
significantly higher bandwidth and lower power consumption compared
to traditional DRAM. It is designed to handle the intensive computational
demands of modern AI models. NVIDIA integrates SK Hynix’s HBM to
enhance AI model training and inference, reducing latency and increasing
efficiency.
Advantages
HBM supports massive parallel processing, enabling faster computations
crucial for deep learning. It allows quicker access to large datasets,
improving AI workload efficiency. Additionally, its lower energy
consumption makes AI chips more sustainable for large-scale
applications.
Impact on AI Hardware
The integration of HBM in AI chips ensures that AI infrastructures operate
at peak efficiency. It enhances GPU performance, allowing AI systems to
process complex models with greater speed and scalability.
Global AI market
Microchips
48.
Groq LPUs (LanguageProcessing Units)
Groq’s Language Processing Unit (LPU) introduces a new approach to AI hardware, providing an alternative to GPUs. Unlike GPUs
designed for general parallel computing, LPUs focus on low-latency, high-speed AI inference, making them highly efficient for
real-time AI applications.
Advantages
LPUs achieve up to 13 times faster inference speeds than Microsoft AI chips, improving responsiveness for AI-driven workloads.
They optimize token processing speeds, enhancing AI assistants and other machine learning applications. LPUs reduce
computational bottlenecks, making them ideal for large language models such as Llama 2 and GPT models.
Future Potential
As AI applications continue to evolve, Groq’s LPU technology is likely to play a significant role in shaping the future of AI
hardware. By challenging the dominance of GPUs and TPUs in inference workloads, LPUs present a new class of AI accelerators
focused on efficiency and speed.
Global AI market
Microchips
49.
Global AI market
Microchips
AIComputing Moving to the Edge
The current energy consumption of cloud AI is unsustainable unless the architecture and power availability changes, which is why
some analysts believe more of AI will be moved to the edge via microchips. There is not enough energy in the current grid to
meet AI’s projected needs.
“In the ageof vibe coding, ephemeral software is becoming a
competitive edge. These are tools built fast, used intensely,
and thrown away without ceremony.
At Setset, we build and discard internal AI tools weekly to
solve product image challenges in e-commerce—delivering
high-quality photography and video at scale, tailored to each
brand’s aesthetic and technical setup. With faster timelines
and lower costs, these bespoke systems outperform one-size-
fits-all platforms. Software is no longer something you buy
and consume, but something you create on the fly to meet
the need of the moment.”
Nils Westerlund
Founder at SetSet.ai
Former Growth Team Lead & Product
Lead at Runway AI
Venture Partner at SparkLabs AI
52.
Artificial intelligence softwareutilizes advanced techniques like machine learning, deep learning, and natural language processing
to mimic human intelligence. These programs are adept at analyzing complex data, recognizing patterns, and making predictions.
They support a variety of applications, from chatbots and virtual assistants to autonomous systems, leveraging complex networks
Global AI market
to process data, learn, and enhance
performance over time. Continuous
improvements in AI software have
led to innovations in fields like
image recognition and speech
synthesis, improving human-
computer interactions and enabling
personalized experiences. This
software is transforming industries
by streamlining decision-making
and fostering innovation in sectors
such as healthcare, finance, and
manufacturing.
Software
Source: Grand View Research
53.
Pre-trained models
Pre-trained modelshave meticulously crafted models that have undergone rigorous training on vast
datasets to excel at specific tasks, such as natural language processing, image recognition, or speech
recognition. These models are endowed with learned features and patterns derived from the
training data, negating the necessity to train models from scratch. To attain remarkable accuracy,
pre-trained models are meticulously trained on extensive, high-quality datasets utilizing state-of-the-
art techniques. Leveraging pre-trained models empowers developers and researchers to save
substantial time and resources that would otherwise be required for training models from the
ground up. This accessibility allows organizations and individuals with limited resources to achieve
exceptional performance levels without extensive data or expensive computational infrastructure.
Customizable AI
Customizable AI is a specialized software type in the artificial intelligence market that allows users to
customize and adapt AI models and algorithms to meet specific requirements. Unlike pre-packaged
solutions, it offers flexibility and control over the underlying algorithms, data processing pipelines,
and model architectures. With customizable AI, businesses and developers fine-tune models to their
unique datasets, problem domains, and objectives. It tailor the training process, incorporate
domain-specific knowledge, and adapt models to changing circumstances. Customizable AI
empowers organizations to develop highly specialized and domain-specific artificial intelligence
applications, improving accuracy and performance. It finds applications in healthcare, finance,
manufacturing, and customer service, where customized AI solutions are vital for optimal results. It
also provides a powerful tool for organizations to leverage AI's potential while addressing their
specific needs and challenges.
Global AI market
Software
54.
Edge AI
Edge AIsoftware encompasses a diverse range of machine learning algorithms executed on local
hardware devices. Its purpose is to enable the deployment of AI algorithms directly on a device or
machine. With Edge AI software, users access real-time data without the need for external systems or
internet connectivity, as the processing occurs locally on the device itself. This decentralized approach
allows faster and more efficient data processing, eliminating the dependency on network connections
or cloud-based servers. By leveraging Edge AI software, organizations achieve real-time insights and
perform AI tasks locally, enhancing responsiveness and privacy and reducing reliance on external
connections.
AI Marketplaces
AI marketplaces are digital platforms within the AI market that facilitate the discovery, acquisition, and
exchange of AI models, algorithms, and services. These marketplaces serve as centralized hubs for
developers, data scientists, and businesses to access and leverage a wide range of AI resources. In AI
marketplaces, users explore and obtain pre-built AI models and algorithms, accelerating the
development process and reducing the need for extensive customization. Additionally, these
platforms enable developers to showcase and monetize their AI creations, promoting collaboration
and innovation. AI marketplaces also offer a suite of AI-related services, including data labeling, model
training, and consulting, to support organizations in their AI journey. It also provides tools and
frameworks for the seamless integration of AI capabilities into applications, empowering businesses to
harness the power of artificial intelligence. By fostering knowledge sharing, resource accessibility, and
commercialization of artificial intelligence innovations, AI marketplaces contribute to the widespread
adoption and democratization of artificial intelligence technologies across industries. It plays a vital
role in driving the advancement and application of AI, shaping the future of intelligent systems.
Global AI market
Software
55.
AI software isdeployed through various methods, including on-premises and cloud-based deployments. The choice depends on
factors such as data security, available infrastructure, and workload complexity. On-premises deployment offers direct control
and customization within the organization's infrastructure, suitable for strict security requirements. Cloud-based deployment
utilizes remote servers, providing scalability, accessibility, and managed infrastructure. It is ideal for organizations seeking
Global AI market
Software
flexibility and resource
efficiency. The deployment
method is chosen based on the
organization's needs, ensuring
optimal control, scalability, and
resource utilization in AI
software deployment.
Source: Grand View Research
56.
The services segmentin the AI market encompasses both professional and managed services, playing a crucial role in the entire AI life cycle,
including product upgrades, maintenance, training, and consulting. In the digital economy era, enterprises are actively seeking innovative
solutions to enhance their business operations and optimize resources. Artificial Intelligence vendors offer diverse services, including support and
maintenance, deployment and integration, and consulting, to effectively execute and manage the life cycle of artificial intelligence solutions. The
growth of the services segment is primarily driven by the increasing complexity of artificial intelligence operations and the widespread adoption
of artificial intelligence technologies across industries. Businesses increasingly rely on services that streamline operations, optimize resource
utilization, and drive growth and profitability.
Global AI market
Software
Source: Grand View Research
57.
“’Text-to-software’ platforms arecompressing the idea-to-
MVP timeline from months to days. Builders such as Lovable
and Bolt.new already let both technical and non-technical
users chat their way to functional sites and apps, leading to
a rapid recent increase in overall throughput for new
software and products. At the same time, tools like Cursor
are amplifying individual engineers and letting leaner teams
ship more with fewer hires. People are building more and
faster than ever.
Cosmic takes the next logical step: our agent not only
writes you a beautiful front-end but also handles your
entire backend, like auth, database, payment processing,
and more, so even non-technical users can launch,
monetize, and iterate in a single weekend.”
Sam Park
Co-Founder & CEO at Cosmic (YC F24)
58.
This section coversthe segmentation of the artificial intelligence market based on vertical. The segments studied include
BFSI, retail & eCommerce, automotive, transportation and logistics, government & defense, healthcare & life sciences,
telecom, energy & utilities, manufacturing, IT/ITeS, media & entertainment, and other verticals (education, travel and
hospitality, and construction).
Global AI Market by Vertical
Source: Grand View Research
59.
While analyzing AImarket offerings provides insights into the types of solutions available—such as software platforms,
hardware components, and professional services—examining the market by vertical reveals how these solutions are being
applied across different industries. This perspective highlights the growing demand for industry-specific AI applications, with
sectors like healthcare, finance, and manufacturing increasingly adopting tailored AI tools to address their unique challenges
and opportunities.
Global AI Market by Vertical
Source: Grand View Research
60.
AI-powered systems inbanking apps and services have ushered in a new era of customer-centricity and technological
advancement. Through advanced algorithms and data analysis, banks have achieved increased productivity and cost reduction
by automating processes and leveraging vast amounts of data for informed decision-making. Implementing intelligent
algorithms has significantly enhanced fraud detection capabilities, enabling real-time identification and preventing fraudulent
activities. In the financial market, AI-driven trading systems have optimized investment strategies by analyzing large-scale
market data, driving efficiency and accuracy. The insurance industry has also benefited from artificial intelligence, as
underwriting processes have been streamlined and claims management has become more efficient.
Global AI Market by Vertical:
BFSI (Banking, Financial Services, and Insurance)
Source: Grand View Research
61.
Artificial intelligence applicationsin retail and e-commerce have transformed the customer experience, supply chain operations,
and business efficiency. AI-powered systems enable retailers to analyze vast amounts of customer data, unveiling valuable
insights that help understand buying patterns and behaviors. It allows personalized shopping experiences and tailored product
recommendations, enhancing customer satisfaction and loyalty. In e-commerce, artificial intelligence optimizes search
functionalities, improves product suggestions, and streamlines the ordering and delivery process, leading to a seamless online
shopping experience. The competitive nature of the retail and e-commerce sector makes differentiation crucial, and AI offers
businesses a significant edge. By leveraging artificial intelligence, retailers and eCommerce platforms make faster, data-driven
decisions, optimize operations, and improve profitability.
Global AI Market by Vertical:
Retail & Ecommerce
Source: Grand View Research
62.
AI is revolutionizingthe automotive, transportation, and logistics industries by introducing advanced solutions to enhance
efficiency, safety, and overall operations. In automotive manufacturing, AI-driven robotics and automation optimize production
processes, ensuring higher quality and precision. Predictive maintenance powered by artificial intelligence minimizes vehicle
downtime and maximizes performance. In transportation and logistics, artificial intelligence facilitates route optimization, fleet
management, and demand forecasting. By analyzing vast data sets, artificial intelligence enables businesses to streamline
operations, reduce fuel consumption, and improve supply chain efficiency. Autonomous vehicles benefit from artificial
intelligence technologies, enhancing safety through advanced driver assistance systems and self-driving capabilities. Additionally,
AI-driven data analytics and predictive modeling empower intelligent decision-making, risk assessment, and supply chain
optimization.
Global AI Market by Vertical:
Automotive, Transportation & Logistics
Source: Grand View Research
63.
The government &defense sectors are capitalizing on AI-powered solutions to address complex challenges, enhance service
delivery, facilitate decision-making processes, and strengthen national security. With the increasing adoption of artificial
intelligence technologies, these sectors also focus on implementing AI-driven governance solutions. Governments worldwide
are forming partnerships with major technology companies to reinforce ethics and governance practices. In the collaboration
between the UAE government and Microsoft, efforts are focused on developing artificial intelligence programs and frameworks
to ensure trustworthy AI deployment.
Global AI Market by Vertical:
Government & Defense
Source: Grand View Research
64.
Biggest concerns aboutAI…
“I believe that the unknowns of AI’s future capabilities and its
impact on humans, ranging from privacy, bias, and work to
just daily life, is what the industry needs to address to
avoid fear taking over and hurdles to innovation and
progress.“
Approach to regulate AI…
“There’s no one-off regulation or policy solution but a never-
ending approach of constant small, nimble steps by
regulators and policymakers to adjust to seemingly lightning-
speed AI progress. Tech giants are part of the solutions and
must be held accountable for developing and deploying AI
ethically and responsibly. It will seem impossible for all
participants, but it is the only way forward for AI and society."
Spiros Margaris
General Partner at Margaris Ventures
No. 1 Global Finance & FinTech
Influencer; Top AI Influencer &
Thought Leader
Venture Partner at SparkLabs AI
65.
The healthcare &life sciences sector is experiencing a significant transformation with the integration of AI technologies.
Artificial intelligence is revolutionizing healthcare by enhancing patient care, enabling advanced diagnostics, accelerating drug
discovery, and improving operational efficiency. In healthcare, AI- powered systems analyze vast amounts of medical data to aid
in early disease detection, assist in accurate diagnosis, and provide personalized treatment recommendations. In the life
sciences domain, artificial intelligence revolutionizes drug discovery processes by analyzing complex biological data, predicting
drug efficacy, and identifying potential targets.
Global AI Market by Vertical:
Healthcare & Lifesciences
Source: Grand View Research
66.
Artificial intelligence hasthe potential to revolutionize various aspects of telecom operations, from network management and
customer experience to service provisioning and cybersecurity. Telecom companies leverage artificial intelligence to optimize
network performance, predict and prevent network outages, and automate routine maintenance tasks. AI-powered virtual
assistants and chatbots enhance customer interactions by providing personalized support and resolving queries in real-time.
Additionally, AI algorithms are utilized to analyze massive amounts of data generated by telecom networks, enabling companies
to gain valuable insights for business decision-making and service enhancements.
Global AI Market by Vertical:
Telecom
Source: Grand View Research
67.
Artificial intelligence applicationsin this industry range from smart grid management and energy forecasting to demand
response and energy optimization. By leveraging AI algorithms, energy & utility companies analyze vast amounts of data, such
as energy consumption patterns, weather conditions, and grid performance, to make intelligent decisions and optimize energy
generation, distribution, and consumption. AI-powered solutions enable predictive maintenance of energy infrastructure,
identify energy theft or anomalies, and enhance grid reliability and resilience.
Global AI Market by Vertical:
Energy & Utilities
Source: Grand View Research
68.
Artificial intelligence isrevolutionizing manufacturing processes by enhancing productivity, efficiency, and quality while
enabling businesses to remain competitive globally. Traditionally, manufacturing has relied on manual labor and conventional
machinery, but with the advent of artificial intelligence, manufacturers are increasingly adopting intelligent systems to
automate and optimize their operations. One of the primary drivers behind the adoption of artificial intelligence in
manufacturing is the pursuit of operational excellence. Artificial intelligence technologies, such as machine learning, computer
vision, and natural language processing, enable manufacturers to analyze large volumes of data in real- time, extracting
valuable insights and making data-driven decisions.
Global AI Market by Vertical:
Manufacturing
Source: Grand View Research
69.
Artificial intelligence hasemerged as a powerful tool for optimizing various aspects of agriculture, including crop cultivation,
livestock management, supply chain logistics, and overall farm operations. By leveraging artificial intelligence technologies, the
agriculture industry has the potential to enhance productivity, reduce costs, minimize waste, and mitigate environmental
impact. Artificial intelligence in the agriculture industry refers to the utilization of intelligent algorithms and systems to analyze
vast amounts of data collected from agricultural processes, enabling farmers and stakeholders to make data-driven decisions.
Global AI Market by Vertical:
Agriculture
Source: Grand View Research
70.
The information technology/informationtechnology-enabled services (IT/ITeS) industry plays a pivotal role in driving innovation
and digital transformation across various sectors. With the advent of AI, the industry has witnessed a paradigm shift, presenting
significant opportunities for businesses to leverage AI technologies to enhance efficiency, improve customer experiences, and
drive competitive advantage. The AI market within the IT/ITeS industry encompasses a wide range of technologies and services
that enable machines to simulate human intelligence and perform tasks that typically require human intervention. This includes
natural language processing, machine learning, computer vision, robotic process automation, and expert systems.
Global AI Market by Vertical:
IT/ITES
Source: Grand View Research
71.
AI is transformingthe media industry by enhancing content creation, distribution, and personalized audience engagement. This
integration of AI offers opportunities for businesses to improve operations and deliver engaging entertainment experiences. The
media and entertainment AI market includes machine learning, natural language processing, and recommendation systems,
which help analyze data, automate tasks, and provide insights for content innovation. AI-driven recommendation systems
personalize content based on user data like viewing habits and interactions, enhancing consumer satisfaction.
Global AI Market by Vertical:
Media & Entertainment
Source: Grand View Research
72.
The advent ofAI has revolutionized industries such as construction, education, travel, and hospitality, enhancing efficiency,
productivity, and customer experiences. In construction, AI technologies automate project management, enhance safety, and
optimize resource use, deploying AI-enabled drones and robotics for tasks like inspections and material transport while
facilitating data-driven decision-making. In education, AI introduces personalized learning through intelligent tutoring systems,
virtual and augmented reality for immersive experiences, and chatbots for round-the-clock student support, also aiding
educators in administrative tasks. In the travel sector, AI-driven chatbots improve customer service by assisting with bookings
and offering personalized recommendations based on data analysis. Similarly, in hospitality, AI enhances guest experiences
through personalized services via chatbots, virtual assistants, and voice recognition technologies, streamlining operations and
improving satisfaction.
Global AI Market by Vertical:
Others
Source: Grand View Research
73.
When will weachieve AGI?
“Achieving artificial general intelligence (AGI) may happen sooner than many
anticipate, but perhaps not as quickly as the most optimistic forecasts suggest. My
journey into computer science began in the late 1970s, with a focus on artificial
intelligence (AI). At that time, AI was a broad concept often associated with
advanced, human-like intelligence as portrayed in science fiction, such as HAL from
‘2001: A Space Odyssey’. This era lacked the clear distinction we see today between
AGI and generative AI. My initial work in AI felt more theoretical than practical,
leading me to shift my focus to computer graphics. However, my interest in AI
persisted, especially during my tenure at the Federal Aviation Administration, where
I encountered AI's application in predicting hazardous weather conditions using
LISP on Symbolics machines—a form of what is now known as machine learning.
Over the years, I've observed AI's evolution from a vantage point of informed
curiosity. A prevalent, though unspoken, belief among my peers was that a
milestone towards achieving "true AI" or AGI would be the capability for
information to self-learn and self-modify. The recent advancement in large
language models (LLMs) and generative AI over the past 18 months represents
this critical step, indicating that we are on the brink of an exponential surge in
technology. Based on these developments, I project that AGI could emerge in
some form within the next 5 to 8 years, marking a significant milestone in the
journey of AI.”
Rob DeMillo
Co-founder & CEO at Sophia Space
Former CTO at Skidmore, Owings &
Merrill (SOM)
Former CTO at Nimble Collective
Former CTO at Discovery Digital
Networks (formerly Revision3)
Former VP of Engineering at VeriSign
(formerly m-Qube)
Venture Partner at SparkLabs Global
74.
This map providesa
comprehensive
overview of the global
AI ecosystem by
categorizing major
companies into
functional tiers such as
hardware, network,
software, security,
platforms, services,
and cloud.
It primarily highlights
large, established
players like NVIDIA,
IBM, Oracle,
Microsoft, and AWS,
organizing them by
their core role in the AI
value chain.
Global AI Market Map (by Market & Market)
“While most peoplethink AI is plug-and-play, industrial and physical
AI tell a very different story. In sectors like advanced
manufacturing or smart warehouses, production optimization
and robotics control can’t be solved with off-the-shelf models —
they require simulation, iteration, and precision. That’s why we
built MetAI: to turn static blueprints into high-fidelity, simulation-
ready 3D digital twin environments where AI agents can learn,
optimize, and validate before ever touching the real world. Our
infrastructure converts CAD and 2D drawings into SimReady
OpenUSD environments, reducing deployment risk and unlocking
scalable, vertical-specific AI systems.
Backed by NVIDIA and born in Taiwan’s manufacturing heartland,
we’re building globally scalable infrastructure for the next era of AI —
where intelligent agents don’t just read, but move, act, and operate
in the physical world. Just as LLMs need text, physical AI needs
digital worlds — and that’s what we provide.”
Daniel Yu
Co-Founder & CEO at MetAI
*first startup in Taiwan to receive an
investment from Nvidia
The CB InsightsAI 100 map offers a more granular, 2024-focused breakdown of both horizontal and vertical AI
companies. Vertical AI refers to startups specializing in specific industries like healthcare, aerospace, and
manufacturing, while horizontal AI companies provide general-purpose solutions such as computer vision,
productivity tools, and DevOps.
AI 100 Market Map (by CB Insights)
Rise of AgenticAI & AI Agents
Agentic AI is the artificial intelligence systems that has the ability to independently make decisions, perceive
the tasks and environment at hand, display iterative problem solving, and act in pursuit of a goal—often
across multiple steps, environments, and tools—without requiring constant human intervention.
Traditional AI is typically constrained to specific tasks and reactive while agentic AI operates with a degree of
self-direction and dynamically interacts with humans and its surroundings to secure its outcomes.
Agentic AI systems primarily differ from generative AI models, such as ChatGPT and Google's Gemini, since
they are designed to make decisions versus simply making content. Additionally, agentic AI works towards
established goals and tasks while GenAI models require human prompts. The product form or software entity
of an agentic AI platform is an AI agent.
“Why is vertical-specificAI important? Big models are
powerful generalists, but you don’t need a Ferrari to deliver
pizza.
Every time you use an expensive foundation model to sort data
transactions or tag tickets, you’re paying a high price for
output that’s correct only a fraction of the time, because it’s not
trained in the nuances of your domain.
Levro’s AI reinforcement learning platform helps companies
train a custom model tailored to their exact workflow (financial
assessments, product recommendations, support triage, etc.)
that can run at a fraction of the cost and with higher accuracy.
No AI research team required.”
Cathy Han
Co-Founder & CEO at LevroAI (YC S21)
Co-Founder & former CEO at 42
Technologies (YC W14)
86.
AI Agent Growth
“AIagents are gaining traction quickly across an array of business applications—and the market for AI agents is
expected to grow at a 45% CAGR over the next five years. As AI agents become commonplace—and they will—
humans will work closely with them as teammates. AI agents will be onboarded, just like human workers, to learn
roles and responsibilities, access relevant company data and business context, integrate into workflows, and
support the humans’ responsibilities.” - Boston Consulting Group
AI Agent Growth
AIagents are not just products
but are evolving into strategic
platforms where developer and
user loyalty will create the next
billion user hubs or extend the
leadership of the trillion dollar
tech giants.
Google, Amazon, and Microsoft
are focused on this strategy as
shown by the launch of Azure AI
Agent, Vertex AI Agent Builder
and Amazon Bedrock Agents.
Creating developer lock-in is now
a mad, mad race.
Apple’s delay into agent
development tooling is
concerning. Maybe their closed
culture is not the approach for
this new AI reality?
89.
AI Agent MarketMap (by CB Insights)
“While AI copilots have already made inroads across
industries, the next evolution — autonomous agents
with greater decision-making scope — is arriving
quickly. AI agent startups raised $3.8B in 2024 (nearly
tripling 2023’s total), and every big tech player is
already developing AI agents or offering the tooling
for them.
Implications for enterprises will be far-reaching, from
altering workforce composition (with new hybrid
teams of humans and AI agents) to maximizing
operational efficiency through full automation of
routine tasks.”
- CB Insights
90.
“Every major technologyshift adds a new layer of abstraction. In the past,
requesting annual leave meant walking around the office collecting
signatures from your manager and HR. Then ERP systems arrived, and you
could submit your request through software. The system took care of the
workflow, and you no longer had to think about the process.
Today, the problem is complexity. Large enterprises run hundreds of
applications. A typical Fortune 500 company uses around 370. Each
comes with its own interface, logic, and rules. This leads to two issues:
growing dependence on system experts and rising operational costs.
AI represents the next step in our evolution. With an agentic platform,
your intent becomes action. You no longer need to know which system
is behind the scenes. You ask, and it gets done. Whether it's accessing
information, starting a workflow, or managing permissions, everything
happens through one unified interface.
This is what we are building with HUMAIN ONE. One interface to control
your entire enterprise. The future is closer than most people think, and it will
redefine how work gets done.”
Saejong Lee
VP and Head of Product for
HUMAIN OS
Former Director of Product at
Aramco Digital
Venture Partner at SparkLabs
Saudi Arabia
91.
AI agent isthe product of an agentic AI platform. It is software that perceives its environment, independently
makes decisions and executes on its goals and stated tasks.
Over the next 3 years, AI agents will have a transformative impact on industries where workflows are
repetitive, information-rich, and ripe for automation or augmentation. Here are the top ten industries that
will be impacted the most:
Industries Impacted the Most within 3 Years
1. Enterprise Software & B2B SaaS
AI agents can automate internal workflows,
sales ops, customer success, recruiting, and
other enterprise functions (e.g., CRM updates,
meeting summaries)
2. Customer Service & Contact Centers
AI agents can reduce costs by replacing or
augmenting Tier 1 and Tier 2 support, and
operate 24/7 with high consistency
92.
Industries Impacted theMost within 3 Years
3. Healthcare
Diagnostic assistants, documentation agents, and
scribe agents improve back office efficiency and
reduce physician burnout. Hopefully reduce the
overall cost of our inefficient healthcare system.
4. Finance & Insurance
AI agents can analyze documents, manage risks,
detect fraud, and create numerous efficiencies
across banking and insurance platforms. The cost
savings some financial and insurance companies
experienced using blockchain will seem miniscule
to the impact of AI agents.
5. Education
Learning agents and personalized AI tutors can
scale teaching while better adapt to learning
styles of each student. Additionally this can
better support underserved populations.
93.
Industries Impacted theMost within 3 Years
6. Retail & E-Commerce
AI agents will optimize logistics, better
personalize shopping experiences, provide
instant Q&A, dynamically manage pricing
and other tasks. Will this level the playing
field for small and medium players or
further empower largest companies?
7. Cybersecurity
AI agents will continuously monitor threats and
attacks, patch, and simulate attacks for
improvements. This will allow threat detection
and response to scale better
8. Legal & Compliance
AI agents can generate legal drafts, execute on
mundane legal writing, analyze contracts, and
help monitor regulatory changes
94.
Industries Impacted theMost within 3 Years
9. Media, Marketing & Content Creation
Agents can generate social media posts, assist in
advanced content creation, create campaign
strategies, make content calendars, analyze
audience responses in real-time and other tasks to
boost the efficiencies of marketing firms and
professionals.
10. Software Development
AI agents can map out products and applications,
code and build, test applications and deploy
software autonomously.
95.
“Research in newtraining and inference improvements continue to
quickly leap from research to production, driven by a demand for better
models from existing data, and from upper bounds on available
computing power. The highest quality frontier models might continue to
need hyperscalar-level investments, but general-purpose models that
are ‘good enough’, and high quality domain-specific models, are rising
fast.
Privacy-sensitive and regulation-heavy verticals like legal and heathcare
need LLM solutions they can put on-prem or on the cloud of their choice,
and smart startups are addressing that need.
Open weights models, and even truly open source models and software
and open data, are driving much of that innovation and
commoditization, rhyming with the impact open source has long had on
the IT industry. Better structured open data sets, and greater legal
and regulatory clarity around training data (you can use it, but you
need to obtain it legally), are where corporations, non-profits, and
even governments are realizing they can turbocharge model
development through collective action.”
Brian Behlendorf
Former Chief AI Strategist at The
Linux Foundation
Primary Developer of the Apache
Web Server
Board Member at Mozilla Foundation,
Electronic Frontier Foundation &
Filecoin Foundation
Former Managing Director at Mithril
Capital
Advisor at SparkLabs Global Ventures
& Venture Partner at SparkLabs AI
Generative AI
As LLMsbecome more and more powerful,
Generative AI developments will continue to
advance rapidly. We expect to see:
Multimodal models: going forward, models are
expected to process text, audio, video and
images simultaneously
Explosive growth in use cases around
generative audio and video, generative design,
education, healthcare, just to name a few
Robust government regulations that aim to
balance innovation and technology
advancement with privacy, security and well-
being of citizens
98.
“Enterprise AI isentering a critical phase, where precision, trust, and
contextual intelligence are essential.
The real opportunity lies in building AI systems that deeply understand
language, intent, and interaction patterns at scale, especially for high-
impact business functions like Customer Experience (CX).
At Lucidya, we’ve spent years developing enterprise-grade AI Agents
trained on billions of real-world conversations and behavioral signals
across sectors and channels. This foundation allows us to deliver AI that is
not only multilingual and culturally aware, but also tuned to the
complexities of CX in enterprise environments.
Delivering this level of intelligence comes with a high bar: compliance,
privacy, and trust are mandatory. That’s why we’ve built our platform with
security and regulatory alignment at its core, because enterprise AI can’t
scale unless it respects data, has safeguards and real business outcomes.
I believe the future of enterprise AI belongs to those who can deliver
domain-specific intelligence that is scalable, compliant, and trusted.”
Abdullah Asiri
Founder & CEO at Lucidya
*recently closed their US$30 million Series
B round to become the largest AI-backed
startup in MENA
99.
Enterprise
The top threeareas over the next 2 years:
Data Analytics and Business Intelligence: AI-powered
data analytics and business intelligence tools are
crucial for enterprises aiming to harness the vast
amounts of data they generate and collect.
Automation and Robotic Process Automation (RPA):
Automation, including RPA, is a significant investment
area, focusing on automating routine, repetitive tasks
to improve efficiency, reduce errors, and free up
human employees for more strategic work.
Customer Experience and Engagement: Enhancing
customer experience and engagement through AI
technologies is a key investment area. This includes
chatbots and virtual assistants for customer service,
personalized marketing, and recommendation
systems.
100.
Healthcare
The top threeareas over the next 2 years:
Diagnostic and Imaging Technology: AI plays a crucial role in
improving the accuracy and efficiency of medical diagnostics. By
analyzing images from MRIs, CT scans, X-rays, and other imaging
technologies, AI algorithms can help detect diseases such as
cancer, neurological disorders, and cardiovascular conditions
earlier
Personalized Medicine and Treatment Optimization: AI is being
used to tailor treatment plans to individual patients, taking into
account their genetic makeup, lifestyle, and other factors. This
includes the development of precision medicine, where AI
algorithms analyze vast datasets to identify which treatments
are likely to be most effective for specific patient profiles.
Operational Efficiency and Patient Care Management: AI
investments are also targeted towards improving the operational
aspects of healthcare provision. This includes the use of AI for
managing patient flow, reducing wait times, and improving
resource allocation.
101.
Finance
Top impact areas:
AlgorithmicTrading: AI is increasingly being used in
algorithmic trading to analyze large datasets and execute
trades at speeds and volumes that are beyond human
capability. By leveraging AI, financial institutions can
identify market trends, predict price movements, and
make trading decisions that optimize returns on
investments.
Robotic Process Automation (RPA) and Back-Office
Automation: Financial institutions are investing in AI to
automate routine and repetitive tasks in areas such as
account processing, compliance checks, and customer
service inquiries. This not only improves operational
efficiency and reduces costs but also allows human
employees to focus on more strategic and customer-
focused activities.
102.
Cybersecurity
Top impact areas:
ThreatDetection and Analysis: AI algorithms are being
employed to analyze network traffic, identify unusual
patterns, and detect potential threats at an early stage.
This includes the use of machine learning models to
recognize signs of malware, phishing attempts, and other
sophisticated cyber attacks that traditional security
measures might overlook.
Behavioral Analytics and Anomaly Detection: AI-driven
behavioral analytics focus on understanding the normal
behavior of users and network devices to identify
deviations that could indicate a security threat. This area of
investment helps in detecting insider threats, compromised
credentials, and advanced persistent threats (APTs) that do
not match known malware signatures but exhibit
anomalous behavior.
103.
Transportation
The top threeareas that we will explore are:
Autonomous Vehicles: AI is the backbone of autonomous vehicle
technology, encompassing self-driving cars, drones, and unmanned
aerial vehicles. These AI systems process data from various sensors
and cameras in real-time, enabling vehicles to navigate complex
environments safely. The development and refinement of
autonomous vehicles promise to reduce accidents caused by
human error, improve traffic flow, and decrease carbon emissions.
Traffic Management and Optimization: AI-driven traffic
management systems are being deployed to analyze traffic
patterns, optimize traffic lights, and reduce congestion. By
leveraging real-time data, these systems can predict and manage
traffic flows more efficiently, thereby enhancing urban mobility and
reducing travel times. This includes the use of AI in public
transportation to optimize routes and schedules based on
passenger demand.
Predictive Maintenance: In the transportation industry, AI is
revolutionizing the approach to maintenance. Predictive
maintenance uses AI algorithms to analyze data from vehicle
sensors and predict when parts might fail or require maintenance.
This proactive approach can significantly reduce downtime, extend
vehicle life, and lower maintenance costs by addressing issues
before they lead to failures.
104.
“Farmed fish isthe fastest growing sector of food
production, helping to meet the world's demand for
healthy protein, and accounting for over half of the fish
produced today. Aquaculture is also one of the most
sustainable forms of protein production and helps reduce
our dependence on overfishing. To grow, the industry
needs a way to monitor and improve the health of fish and
its local waters.
Aquabyte builds incredibly complex AI models based
on underwater cameras, computer vision, and ML
models based on fish biology, allowing fish farms to
monitor and optimize fish growth and health. This data
helps fish farmers make data-driven decisions to produce
healthier fish faster at lower cost, higher efficiency, and
better sustainability.”
Bryton Shang
Senior Advisor to the NOAA
Administrator (National Oceanic &
Atmospheric Administration)
Founder, former CEO & Executive
Chairman of Aquabyte, a pioneering
aquaculture technology company
leveraging computer vision and AI
105.
Agricultural
Precision Farming: AItechnologies enable precision farming, which
involves the precise and controlled application of water, fertilizers,
and pesticides to crops. By analyzing data from soil sensors, drones,
and satellites, AI algorithms can optimize these inputs to enhance
crop yields, reduce waste, and minimize environmental impact.
This approach supports sustainable agriculture practices by
ensuring resources are used efficiently.
Crop Health Monitoring and Disease Detection: AI-powered
imaging and diagnostics tools are being used to monitor crop
health and detect diseases early. By analyzing images from drones
or satellites, AI can identify signs of stress, pest infestations, or
disease in crops, enabling farmers to take targeted action to
mitigate losses. This technology is crucial for ensuring food security
and maximizing agricultural productivity.
Supply Chain Optimization: AI is streamlining agricultural supply
chains, making them more efficient and responsive. By analyzing
data on weather, crop yields, and market demand, AI algorithms
can predict supply chain disruptions and optimize logistics. This
includes everything from the timing of harvests to the storage and
transportation of produce, ensuring that agricultural products are
delivered to markets in the most efficient manner possible.
The top three areas impact areas:
As artificial intelligence(AI) continues to evolve, its adoption across industries is accelerating
at an unprecedented pace. No longer a niche technology, AI is now embedded into core
business functions—from predictive analytics in finance to supply chain optimization and
personalized marketing. Recent developments have also introduced a powerful new player in
this space: Generative AI (GenAI). While both AI and GenAI stem from the same foundational
technologies, their applications and implications diverge significantly.
Organizations are increasingly leveraging traditional AI to automate decision-making, analyze
large datasets, detect fraud, and improve operational efficiency. At the same time, Generative
AI is revolutionizing how businesses approach creativity, customer interaction, and content
development. From chatbots
that compose full emails to
models that generate synthetic
medical images, GenAI is
enabling machines to create
original, human-like outputs
based on training data.
AI Adoption
“The big AIcompanies are focused on solving intelligence.
We’re solving presence. If you want people to fall in love
with AI personas, they need to be more than smart. They
need to be something you can feel, connect with, and grow
alongside, not just a voice in your head or words on a
screen.
That’s where games come in and why this Unity
partnership is a major milestone. As AI companions
become part of everyone's day-to-day, people will want
a deeper experience where they can do things with
them, not just talk to them. By bringing Genies' technology
to the world’s largest game development community, this
collaboration empowers creators to build a new generation
of AI-driven experiences, marking the beginning of a new
era for AI companions in interactive entertainment.”
Akash Nigam
Co-founder & CEO at Genies
*Genies has raised over $200
million from Silver Lake, Bond,
NEA, Breyer Capital, Thomas Tull,
Bob Iger and others.
“Until two yearsago, many enterprise customers questioned
the real-world benefits of using AI in production
environments. Some were convinced of its value, while
others were skeptical. However, starting last year, there has
been a dramatic shift. Now, everyone clearly understands
the productivity boost AI can provide.
Every enterprise customer is experiencing a fear of missing
out (FOMO) if they don't integrate AI into their workflows
immediately. Meanwhile, AI technology is advancing at a
dizzying pace, transforming from simple automation tools
for mundane tasks into sophisticated assistants capable of
handling complex work alongside humans.”
Changsu Lee
Founder & CEO at Allganize
115.
AI patents arean indicator of innovation and technological leadership. They reflect not only a country’s or
company's ability to develop AI technologies, but also their intent to protect and commercialize intellectual
property. Tracking AI patent activity helps us understand where the most intensive R&D efforts are taking place
and which regions are likely to shape the future of AI.
AI Patents
116.
This graphic highlightsglobal innovation in artificial intelligence by showing the number of granted AI patents per
100,000 inhabitants in 2022. South Korea and Luxembourg lead significantly, indicating a high concentration of AI
research and development activity relative to population size. The United States, Japan, and China also rank
prominently, which reflect their roles as global AI leaders. This metric highlights not just technological advancement
but also national investment in AI innovation.
AI Patents
117.
“Companies of allsizes must embrace AI not as a luxury, but
as a necessity for survival and growth. Large Language
Models (LLMs) like ChatGPT offer a broad foundation,
enabling organizations to automate knowledge work,
enhance decision-making, and unlock new efficiencies.
However, the true competitive edge lies in specialized, fine-
tuned models tailored to an industry’s unique data,
terminology, and workflows. A healthcare provider, a logistics
firm, or a financial institution each faces distinct challenges
that a generalized model cannot fully address without
customization.
Those who fail to integrate both general and domain-
specific AI into their operations risk falling behind (or
dying off completely) competitors who are accelerating
innovation, reducing costs, increasing revenues, and
delivering smarter, more personalized experiences.”
Scott Sorochak
Venture Partner at SparkLabs Group
Former CRO at Brandwatch
Former SVP Global Sales at Livefyre
(acquired by Adobe)
Former EIR at Foundation Capital
Private investment playsa pivotal role in accelerating artificial intelligence (AI) innovation by funding research,
startups, and applications across industries. This shows the United States leading global AI private investment with
over $67 billion, surpassing China’s $7.76 billion. The large gap reflects the U.S.’s dominance in AI innovation,
driven by strong capital markets, a mature venture capital system, infrastructure, and startups. This disparity
highlights the strategic role of private funding in shaping global AI leadership.
AI Private Investments
121.
This graphic highlightsa significant shift in AI investment priorities. In 2023, private funding surged in AI
infrastructure, research, and governance, emphasizing a strong focus on building scalable, secure, and responsible
AI foundations. While areas like healthcare remained important, the overall trend reflects investor confidence in
core AI technologies that support long-term innovation and trustworthiness of models and applications.
AI Private Investments