Summary:
Sweden excels with a 1,127% revenue growth for AI startups.
The global generative AI market is set to grow by 30-40% annually.
In 2023, €62.5bn of private investment was made in the US for AI.
AIPRM ranks Sweden as the 3rd best country for AI startups in Europe.
Generative AI could add $575.1bn to the European economy.
Sweden is among the best countries for a new AI company, boasting an impressive revenue growth of 1,127% for its most successful tech startups.
The Global AI Market is Projected to Speed Up
The global market for generative AI is predicted to grow by 30-40% each year, making it a booming sector. In 2023, it was valued at over €130bn. According to Stanford University's latest AI report, the majority of private investment, totaling €62.5bn, occurred in the US, followed by China with €7.3bn. The EU and UK together attracted €9bn in investments. Last year, the number of newly founded AI companies rose globally by more than 40%.
The Hottest Locations to Create an AI Company in Europe
A recent report by AIPRM ranks the best countries for establishing an AI startup based on several factors, including the number of newly funded AI companies and total private investment. While the US takes the lead, Sweden ranks third globally, with Singapore in second place. Other notable rankings include:
- Switzerland (4th) - Benefitting from a strong business environment.
- Germany (6th) - Despite being Europe's strongest economy, it has a less favorable business climate.
- Spain - Rated highly for its business environment, surpassing both Germany and France.
- France (9th) - Home to the highest number of newly funded AI companies in the EU, with a total private AI investment of $10.4bn.
Christoph C. Cemper, founder of AIPRM, notes that “Starting up in AI is becoming increasingly competitive as the industry grows rapidly.”
What Europe Can Gain
Generative AI could potentially add $575.1bn (€521 billion) to the European economy, equivalent to about one-tenth of Germany's GDP. To enhance competitiveness, Europe must adopt AI technologies more broadly. Currently, Europe leads in only one of the eight segments related to AI, specifically AI semiconductor equipment.
To bolster investments, the European Commission launched an AI innovation package in January 2024 aimed at supporting AI startups and SMEs. The report emphasizes the need for increased investments in AI applications for healthcare and defense, as well as programs focused on re-skilling the workforce.
A critical element for success will be achieving competitive energy prices, as AI is projected to significantly increase data center power demand, which could reach 5% of total electricity consumption by the end of the decade. Furthermore, generative AI could enhance Europe's annual productivity growth rate by up to 3% through 2030, as per McKinsey's research.
Comments