Tracking AI Investment – CSET

Earlier this summer, I was asked to review a publication recently released by Georgetown’s Center for Security and Emerging Technology (CSET). The paper goes in depth on global investment activity in AI technologies over the last six years and how observed trends can inform and aid policymakers.

The analysis was spurred by the specific observation that AI innovation is primarily in the private tech sector (as opposed to USG or academia), which means that while USG can and does harness these technologies, so can other nations. Thus, the folks at CSET set out to identify where commercial AI innovation is taking place, who funds it, what problems they are solving and how these change over time.

The paper is primarily for policymakers, shining a light on global equity-only AI investments and focusing on privately traded companies. Some of the key findings from their study are:

• Over the last six years, the USA is the top investor in AI
• US national security interests attract little private cash flow
• China experienced an AI boom-bust cycle, and Chinese investors play a minor role outside of China
• Private AI companies focus primarily on transport, business and general purpose AI applications

This publication represents a large data analysis effort by the CSET team, and surely we should expect some follow-up studies. Hope you enjoy!