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Despite some concerns about a possible AI bubble earlier in the year, companies continue to invest in generative technologies – and investors still see it as an area of growth.
That’s according to a few recent reports we’ve gathered on the current state of the AI revolution. Data shows that generative AI remains the fastest growing area of enterprise software spending, as well as the most likely area for startup investment.
AI becomes a must-have in the office: Enterprise financial management platform Ramp found that enterprise spending on AI vendors in the third quarter of this year increased 38% from the second quarter to more than $20 million.
Half of the 10 fastest-growing enterprise software providers on the platform were AI startups, including AI code assistants Cursor, Replit and Supermaven; video generation and editing platforms Runway and Luma AI; and LangChain development platform.
Although OpenAI’s ChatGPT still reigns supreme (Ramp found that companies preferred it to Anthropic’s Claude 80% of the time), more and more companies are choosing to spend on multiple LLM services. Ramp found that about 22% of OpenAI customers now also spend on Anthropic, a big increase from 3% at the start of the year.
AI still fuels venture capital growth: AI has been one of the few bright spots in an otherwise sluggish venture capital market all year. A new report from Dynamo Software expects this trend to continue in the coming months.
Three-quarters of sponsors surveyed in the report said they planned to increase investments in AI over the next 12 months, with cybersecurity, predictive analytics and data centers attracting the most interest. Autonomous vehicles and computer vision rank last among AI subfields attracting investor attention.
Limited partners also plan to increase their investments in AI-specific funds in the coming months, the report said. Over the next half year, 72% said they planned to increase their investments in AI funds and 37% of them said the increase would be “very significant.”
Productivity flat line: Although there was some uncertainty On the extent to which AI could actually increase business productivity, a new report from Accenture claims that the technology is already delivering results in efficiency.
The report reveals that productivity remained stable among the global companies surveyed over the past year and that 40% of large companies experienced negative productivity growth. That said, Accenture said that a quarter of companies increased their productivity significantly – by more than 8% – and that these companies were more likely to invest in technologies such as generative AI.