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How companies are spending on AI right now
A roundup of some recent data on the tech’s growth.
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By
Patrick Kulp
Read origianl artical
14 November 2024
less than a 3 min read
Despite some worry over a possible AI bubble earlier in the year, businesses are continuing to spend on generative technology—and investors are still eyeing it as a growth area.
That’s according to a few recent reports we’ve rounded up on the current state of the AI revolution. Data show that generative AI remains the fastest growing area of business software spending, as well as the biggest likely area for startup investment.
AI becoming an office staple: Corporate finance management platform Ramp found that business spending on AI vendors in the third quarter of this year increased 38% from Q2 to reach over $20 million.
Half of the top 10 fastest growing enterprise software vendors on the platform were AI startups, including AI code assistants Cursor, Replit, and Supermaven; video generation and editing platforms Runway and Luma AI; and development platform LangChain.
While OpenAI’s ChatGPT still reigns supreme—Ramp found that businesses chose it over Anthropic’s Claude 80% of the time—more businesses are opting to spend on multiple LLM services. Ramp found that around 22% of OpenAI customers now spend on Anthropic as well, a big boost from the 3% at the start of the year.
AI still fueling VC growth: AI has been one of the few bright spots in an otherwise sluggish VC market all year. A new report from Dynamo Software expects that trend to continue in the months to come.
Three-quarters of limited partners surveyed in the report said they plan to increase AI investments in the next 12 months, with cybersecurity, predictive analytics, and data centers garnering the most interest. Autonomous vehicles and computer vision ranked last for sub-fields of AI catching investor attention.
Limited partners are also planning to increase investments in AI-specific funds in the coming months, the report said. In the next half year, 72% said they plan to increase investment in AI funds and 37% of those said the increase would be “very significant.”
Productivity flatline: While there has been some uncertainty over how much AI might actually boost company productivity, a new report from Accenture claims that the tech is already yielding efficiency results.
The report found that productivity was flat among global companies studied in the past year, and 40% of large companies recorded negative productivity growth. That said, Accenture said one-quarter of companies increased productivity significantly—by more than 8%—and those companies were more likely to be invested in technology like generative AI.