A moneytransfers.com analysis of the sector places private investment in AI in 2021 at $93,5-billion – more than double what it was in 2020.

The total amount of funding raised by venture capitalists (VCs) for AI startups has increased significantly since 2017. Howeverr, the number of companies qualifying for funding is shrinking.

The AI sector’s value will exceed the $135-billion mark in 2022, growing at a CAGR of 38% between now and 2030 according to analysts. This increase can be attributed to improved performance by algorithms, increased use cases for AI products and services, and an influx of startups into the market.

The US and China lead in private investments in the field. The two are locked in a two-horse race for market dominance. Though the former currently holds an upper hand, the latter has been rapidly gaining ground following significant investments in that space.

By the end of 2020, the US had invested over $23-billion in private investments in the sector. That was more than twice the $9,9-billion that China did. But China has set its sights on becoming the world’s AI innovation hub, targeting to grow its market share to $150-billion.