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Global Corporate Investment In AI

Source: Daniel Zhang, Nestor Maslej, Erik Brynjolfsson, John Etchemendy, Terah Lyons, James Manyika, Helen Ngo, Juan Carlos Niebles, Michael Sellitto, Ellie Sakhaee, Yoav Shoham, Jack Clark, and Raymond Perrault, The AI Index 2022 Annual Report, AI Index Steering Committee, Stanford Institute for Human-Centered AI, Stanford University, March 2022. Historical performance is not an indication of future results and any investments may go down in value.

What activities is the money funding?

Aggregate investment amounts are one thing, but its more concrete to consider specific areas of activity. Figure 2 below is helpful in that regard, providing a sense of change in 2021 relative to 2020.

Figure 2: Private investment in AI by focus area, 2020 vs. 2021

Private Investment In AI By Focus Area, 2020 Vs. 2021

Source: Daniel Zhang, Nestor Maslej, Erik Brynjolfsson, John Etchemendy, Terah Lyons, James Manyika, Helen Ngo, Juan Carlos Niebles, Michael Sellitto, Ellie Sakhaee, Yoav Shoham, Jack Clark, and Raymond Perrault, The AI Index 2022 Annual Report, AI Index Steering Committee, Stanford Institute for Human-Centered AI, Stanford University, March 2022. Historical performance is not an indication of future results and any investments may go down in value.

Is AI technically improving?

This is a fascinating question, the answer to which may have nearly infinite depth and would be covered in a limitless array of academic papers to come. What we can note here is the fact that it involves two distinct efforts:

I find semantic segmentation particularly interesting. It sounds like something only an academic would ever say, but it refers to the concept of seeing a person riding a bike in a picture. You want the AI to be able to know what pixels are the person and what pixels are the bike.

If you are thinkingwho cares if sophisticated AI can discern the person vs. the bike in such an image, I grant you that it may not be the highest value application. However, picture an image of an internal organ on a medical imagenow think about the value of segmenting healthy tissue vs. a tumour or a lesion. Can you see the value that could bring?

The Stanford AI Index report breaks down specific tests designed to measure how AI models are progressing in such areas as:

Many of these areas are approaching what could be defined as the human standard, but its also important to note that most of them are only specialising in the one specific task for which they were designed.

Conclusion: Its still early for AI

With certain megatrends, its important to have the humility to recognise that we dont know with certainty what will happen next. With AI, we can predict certain innovations, be it in vision, autonomous vehicles, or drones, we must also recognise that the biggest returns may come from activities we arent tracking yet.

Stay tuned for Part 2 where we discuss recent results on certain companies operating in the space.

Disclaimer: This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.

[1] Source: https://www.cdc.gov/coronavirus/2019-ncov/vaccines/different-vaccines/mrna.html#:~:text=The%20Pfizer%2DBioNTech%20and%20Moderna,use%20in%20the%20United%20States.

[2] Source: Heikkila, Melissa. The hype around DeepMinds new AI models misses whats actually cool about it. MIT Technology Review. 23 May 2022.

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Part 1: A Realistic Framing Of The Progress In Artificial Intelligence - Investing.com UK