Report finds AI adoption has tripled over the past year

A recent report from MMC Ventures outlines the current state of AI adoption amongst startups in Europe

Report finds AI adoption has tripled over the past year

Artificial intelligence (AI) adoption has tripled in the past 12 months, with one in seven companies implementing the technology. This is according to London venture capital firm MMC, which also predicts that AI will “cross the chasm” from “early adopters” to the “early majority” this year.

Overall, MMC reviewed the “activities, focus and funding” of 2,830 purported AI startups in the 13 EU countries most active in AI. Together, these countries comprise of almost 90% of EU GDP.

AI has come of age

“After seven false dawns since its inception in 1956, AI technology has come of age”, the report notes. The confluence of seven factors has contributed to this shift, including new algorithms and the availability of training data.

Specialised hardware and cloud AI services have also meant that the capabilities of AI have vastly improved. Meanwhile, open source software resources, greater investment, and increased interest have all enhanced AI deployment.

These factors have also cut down costs, time, and the difficulty of “developing and deploying” AI. According to the report, a “virtuous cycle has developed”, so progress in AI is “attracting investment, entrepreneurship and interest.”

AI adoption soars

As the report observes, “AI may be the fastest paradigm shift in technology history” as adoption has increased dramatically. In fact, MMC predicts that proportion of enterprises with AI initiatives will grow from “one in 25 to one in three” over the next three years.

The prior paradigm shift to cloud computing has catalysed the increase in AI adoption. Meanwhile, the availability of plug-and-play AI services from global technology vendors and a thriving ecosystem of AI-led software suppliers has also contributed to this shift.

Executives also expect AI to have a greater impact than any other emerging technology, which is fuelling adoption. As a result, leaders are increasing their “advantage by learning faster and increasing investment in AI.”

At present, however, more companies prefer to buy rather than build AI systems. Almost half of surveyed companies preferred buying AI solutions from third parties, while a third intend to build custom solutions.

Enjoyed this article? Check out our latest episode of Tech Chat, in which Max and Tom discuss the new Mirai variant putting enterprise IoT devices at risk