Generative AI For The Rest Of US

The Global AI Landscape: A Comparative Analysis

The United States: The Leader in AI Investment

The state of AI in the U.S. reflects a dynamic and rapidly evolving sector that stands at the forefront of the global technology revolution. The historical dominance of the U.S. in AI technology, combined with its continued investment and innovation, has positioned the country as a leader in the development and deployment of advanced AI technologies across various industries.

This supremacy is reinforced by the country's leadership in the development and deployment of sophisticated AI technologies that include natural language processing, machine learning, computer vision, and speech recognition. Some of the leading AI companies in the U.S. include:

• Microsoft: The technology giant offers AI solutions across various platforms, including Azure AI for cloud computing, AI-driven analytics, and cognitive services for developers.

• Alphabet (Google): Google leads in AI research and products such as TensorFlow for machine learning, and DeepMind for AI research.

• NVIDIA: The most used graphics processing units (GPUs) for AI and machine learning applications. Owned by the American-Taiwanese Jensen Huang, the 17th richest person in the world according to Forbes (2024), the company is at the heart of a geopolitical storm between the US and China.

• Meta Platforms (Facebook): Meta focuses on AI for social media content moderation, virtual reality through Oculus, and AI research initiatives. Meta is one of the most important contributors to the AI research community and open source projects today.

• Tesla: Tesla uses AI in the development of autonomous driving technologies and advanced safety features in electric vehicles. The co-founder and CEO of Tesla, Elon Musk, is a vocal advocate for AI safety and regulation and has warned about the potential dangers of AI. The multi-billionaire has also founded Neuralink, a company that aims to develop brain-machine interfaces, and xAI, a company that aims to build an AI with a goal to "understand the true nature of the universe". xAI has already released the Grok chatbot, a response to OpenAI's ChatGPT, which Musk co-founded.

• OpenAI: OpenAI is known for its research in artificial intelligence and for creating advanced AI models like GPT-3, 4, 5 among others.

• IBM: IBM offers AI services including Watson for business intelligence, AI-powered analytics, and cloud-based AI solutions.

• SentinelOne: SentinelOne specializes in AI-driven cybersecurity solutions, detecting, preventing, and responding to threats in real-time.

• Aurora Innovation: Aurora Innovation concentrates on developing self-driving technology powered by AI for various transportation applications.

• Presight AI: Presight AI uses AI for predictive analytics and data analysis in sectors such as finance and healthcare.

• C3 AI: C3 AI provides enterprise AI applications for industries like energy, financial services, and manufacturing to optimize operational efficiency.

• H2O.ai: H2O.ai offers AI and machine learning platforms to businesses for data analysis, predictive modeling, deep learning, and Generative AI applications.

The technologies developed by these companies are leveraged across various industries, such as finance, healthcare, retail, consumer technology, military, and more, to automate processes, analyze data, improve customer experiences, and support data-driven decision-making. It's worth noting that the US is the largest investor in AI research and development. According to various sources, including precedenceresearch.com and AIPRM via OECD and World Bank, the United States solidified its position as a global leader in artificial intelligence by investing an impressive $328,548M into the sector from 2019 to 2023. In 2023 alone, the U.S. invested $67,911M, marking a robust increase of 65.9% from its 2019 figures. Relative to its GDP, the U.S. invests $12.9 per thousand dollars in AI.

★ U.S. AI development represents a vibrant and swiftly progressing field, leading the global tech revolution.

China: The Battle for Global AI Dominance

The launch of ChatGPT by US-based OpenAI marks a significant turning point in the AI landscape, threatening China's ambition to become the global AI leader by 2030. Despite the country's extensive integration of AI in various sectors, including public security, service industries, and smart technology, the arrival of ChatGPT highlighted a gap in China's AI development, particularly in creating competitive Generative AI chatbots.

The delay in China's response and the inherent challenges posed by the complexity of the Chinese language and political complexities have led to introspection about the country's AI development strategy. Some experts argue that China was not the first to develop a ChatGPT-like model because the goal of tech companies in China is to develop AI models that are more practical and focused on solving specific problems, rather than creating general-purpose AI models. The country's socialistic approach prioritizes practical implementations of AI in sectors like transportation, security, and health, rather than developing large language models for conversational purposes. The Chinese language is also far more complex than English, making it more challenging to develop a Generative AI model that can understand and generate human-like text. The AI/ML ecosystem in China is also facing other challenges, mainly the US sanctions on Chinese tech companies like Huawei, DJI, and SenseTime. Other sanctions have made it difficult for Chinese companies to access AI hardware like Nvidia GPUs used for training large language models.

Nonetheless, AI continues to transform Chinese society, with innovations in AI-powered social media, e-commerce, and entertainment. China's AI advancements in consumer applications are demonstrated through deepfake influencers and AI-driven e-commerce hosts who can livestream around the clock, providing a cost-effective substitute for traditional presenters and transforming online shopping into an interactive experience. Moreover, the country approved over 40 AI models for public use, including contributions from Xiaomi Corp and 4Paradigm. This initiative aims to elevate China's global standing in AI and weave these technologies into various sectors ranging from cybersecurity to video processing and autonomous driving. Wuhan's role as a focal point for autonomous driving technology further exemplifies China's rapid advancements in AI. Home to the world's largest fleet of self-driving cars (500 robotaxis and 730,000 ride-hailing trips in 2023), Wuhan is at the forefront of testing and refining autonomous driving. China is indeed determined to close the technological gap with the West in this domain and possibly lead this sector in the future.

Amid escalating US restrictions on high-performance chip sales to China, SMIC and Huawei are shifting their focus to enhance chip production for AI systems. This move is partly driven by the challenges faced by Chinese tech giants like Tencent and Alibaba in acquiring high-performance chips, such as the American-made Nvidia GPUs. These chips are essential for training large language models like ChatGPT. In fact, Huawei's Ascend series AI chips are considered the most competitive non-Nvidia AI chip available in China. This has made it the choice for many Chinese companies to train their AI models despite the US sanctions.

It is also worth noting that China is the leading country in the world in terms of the number of AI publications and patents. Some experts believe that the fact that China has produced almost 40% of all publications in AI journals and 22% of all publications at AI conferences from 2010 to 2021 is a sign that China could quickly catch up with the US in AI research and development. However, according to AI Safety Fundamentals, this number could be misleading as the quality of the patents and publications is not as high as in the US. To quote the source:

China leads on the number of scientific publications and AI patent filings, but these numbers are complicated and rankings could be misleading [..] China produces more publications in total, but the United States produces most of the top publications. Chinese publications accounted for almost 40% of the total in 2019, while the United States’ share was around 20%.

Some leading Chinese tech companies include:

• Baidu: The Chinese search engine giant has been investing in AI to enhance its search engine and other products. Baidu unveiled its AI model called Ernie 4.0 in 2023 as a response to ChatGPT. Baidu uses Ernie to enhance search results and ad relevance, delivering a user experience that's more intuitive than traditional search engines. The company has ventured into AI-generated art. It is worth noting that Baidu has launched a driverless airport transportation service in Wuhan, becoming China's first provider of autonomous rides to and from airports.

• Alibaba: The e-commerce giant has been investing heavily in AI, with applications in logistics, customer service, and cloud computing. Alibaba unveiled its ChatGPT challenging large language model, Tongyi Qianwen, in 2023. This chatbot is capable of answering questions and providing coding assistance. The company's strategy involves integrating this model into various products and services, as well as enabling businesses to develop their own Generative AI solutions through its cloud platform.

• Bytedance: The company behind TikTok has been investing in AI to enhance its content recommendation algorithms and video editing tools. Bytedance is one of the first companies to launch mobile-first products heavily relying on ML and AI. This feature has been a key driver of the addictive nature of TikTok and other Bytedance products, especially for the younger generation.

• SenseTime: Based in Hong Kong, SenseTime, a partly state-owned publicly traded artificial intelligence company, has established itself as a leader in developing advanced artificial intelligence technologies including facial recognition, image recognition, media analysis, autonomous driving, and remote sensing.

• UBTECH Robotics: This company is renowned for pioneering intelligent humanoid robots on a global scale. Beyond enriching household environments with assistance and entertainment, UBTECH's creations extend their utility to public services and are instrumental in advancing STEM education (science, technology, engineering, and math) among children. Some of its most popular products include Walker, Walker X, Cruzr, and more.

• Other companies include Megvii, Yitu, CloudWalk, iFlytek, Tencent, Meituan, DJI, and more.

China is the second-largest investor in AI research and development after the US, with total investments reaching $132,665M between 2019 and 2023. Despite this, the annual AI investment in 2023 was reported at $15,071M, reflecting a downturn of 30.5% compared to its investment at the start of this period. This decrease suggests a recalibration of China's investment strategies or external factors influencing expenditure. Relative to its GDP, China invests $7.39 per thousand dollars. Compared to the 12.9 per thousand dollars in the US, this number is lower, but it is still one of the highest in the world.

★ ChatGPT's emergence from OpenAI had an enormous effect on the world of AI, which goes against China's ambitions to lead global AI in 2030.

The narrative surrounding the AI race between China and the West is evolving. While the West focuses on individualism and decentralization in AI application, China maintains a focus on economic growth, political stability, and cyber sovereignty. This divergence suggests that the future of AI development will not solely be about competition but also about understanding and learning from the varied applications and regulations that shape how AI is integrated into societies globally.

The United Kingdom: No Rush to Regulate

The United Kingdom has been consistently investing in intelligence with an investment of $25,541M, from 2019 to 2023. In 2023 alone, it invested $3.52 billion, marking a 0.2% increase from 2019. This steady investment strategy results in a moderate AI investment relative to its GDP, at $8.32 per $1,000. The UK's approach indicates a stable and deliberate advancement in AI, avoiding significant spending fluctuations.

Unlike other nations on the old continent, the United Kingdom has chosen against quick regulation of the AI sector, prioritizing industrial growth over the possible perils of tight control. This approach contrasts with the actions of the EU, the United States, and China, which are implementing new AI regulations. The UK government is seeking advice from the private sector and civil society on how to effectively manage AI, despite fears that a lack of legislation could discourage investors and cause the UK to fall behind its worldwide peers in AI governance.

The UK had an ambition to become an international standard-setter in AI governance. However, without legislation [...] to give expression to its preferred regulator-led approach, it will most likely fall behind both the US and the EU." ~ Greg Clark, chair of the House of Commons Science, Innovation and Technology Select Committee.

The major players in the U.K. AI ecosystem include:

• DeepMind: A subsidiary of Alphabet, DeepMind is probably the most famous AI company in the UK. Known for its research in AI/ML, with applications in healthcare, gaming, robotics, and other fields as well, DeepMind has developed several projects, including neural network models such as AlphaGo, AlphaStar, AlphaFold, AlphaZero, Flamingo, and DeepNash, each contributing to advancements in various fields ranging from strategic games to protein structure prediction.

• BenevolentAI: This company uses AI to discover and develop new medicines and treatments for various diseases. It has developed a drug discovery platform that uses AI to analyze and interpret scientific data, enabling the discovery of new drugs and treatments.

• Graphcore: This British semiconductor company develops AI accelerators and processors for machine learning and deep learning applications. Graphcore's products include the Poplar Software Stack and GC200 IPUs.

• Secondmind: This company develops an optimization engine for the software-defined vehicle. Using Machine Learning, Game Theory, and modern computational tools, Secondmind uses Generative AI to solve complex automotive engineering problems.

★ The UK has opted to prioritize expansion over regulations.

Japan: A Dual Landscape

Japan's artificial intelligence market stands as a significant player in the global AI landscape, with a valuation of $20,200M in 2022. Set for rapid advancement, the market is expected to grow steadily at a rate of 21.0% annually from 2023 to 2032. Acknowledging the rising impact of AI, lawmakers in Japan have emphasized the importance of taking human rights into account. In 2022, they discussed strategies to ensure that the implementation of AI technologies upholds human dignity and liberties. Building public confidence in AI systems proves to be a struggle in Japan, echoing a widespread sense of doubt towards AI worldwide. A notable finding reveals that trust in AI is particularly low in Japan, with less than a quarter of the population expressing confidence in AI systems.

Japan's approach to AI, marked by significant business value, ethical concerns, and public mistrust, presents a mixed image of a country at the forefront of scientific innovation but treading carefully on the social repercussions associated with artificial intelligence. Simultaneously, Japan's sophisticated technological infrastructure, which includes top-tier telecommunications, fast internet access, and a vast data infrastructure, enables fluid AI innovations across several industries. This dual picture reflects Japan's strategic balance: on one hand, embracing AI's promise through its powerful tech infrastructure and market investments; on the other, carefully tackling the public trust difficulties that come with accelerated technological progress.

Historically, Japan and China have had a long-standing rivalry due to territorial disputes and historical grievances. The two countries have had several military conflicts, including the Sino-Japanese War and World War II. This rivalry has extended to the AI sector as both countries seek to dominate the global and regional AI landscape. Since overtaking Japan in 2013 as the top industrial robot installer, China has widened its lead. By 2021, China's industrial robot installations surpassed not only those in Japan and the United States combined but also the total installations in all other countries in the world.

Despite this, Japan's AI landscape is home to several notable AI startups, including:

• SoftBank Robotics: Specializes in developing robots and robot-related products and services, including the well-known "Pepper". With funding of $236M, they are a leading figure in the robotics field.

• Mujin: Focuses on automation solutions for industrial robots to streamline factory and logistics operations, enhancing productivity worldwide with funding of $159.5M.

• Preferred Networks: With ¥16.5B in funding (approximately $122.1M), this company works on autonomous driving, connected cars, and applying machine learning and deep learning to robotics, machine tools, and medical diagnosis.

• AI Medical Service: This company is developing AI software to assist in the detection of GI cancer, supported by ¥13.6B in funding (approximately $100.64M).

• ABEJA: This company creates AI business solutions utilizing deep learning, with a total funding of $104.4M. The company is active in several sectors, including retail, manufacturing, and healthcare.

★ Japan balances commercial potential with ethical concerns in AI development, adopting a cautious approach amid public skepticism.

India: High Trust and Adoption

From 2019 to 2023, India invested $16,147M in AI, with a significant leap to $3.81 billion in 2023 alone, marking a 261.3% increase from 2019. Despite this aggressive investment strategy, India's AI spending relative to its GDP remains modest at $4.77 per thousand dollars.

According to the "State Of Data Science & AI Skills In India" report, India ranks 1st in terms of AI skill penetration with a score of 3.09 (416K professionals in 2022 with a market demanding 629K). The report also states that the estimated demand for professionals in India is expected to exceed 1M by 2026. A KPMG study found that people in India, among other countries like China and South Africa, have the highest level of trust in AI.

Some of the promising AI startups in India include:

• GoodMeetings: GoodMeetings enhances customer meetings with AI-powered summaries and actionable insights, raising $1.7M in Pre-Series A funding.

• StableDiffusionAPI: StableDiffusionAPI provides stable diffusion image generation services with both free and paid plans for faster processing.

• HireSure: This is an AI-driven platform for competitive salary insights, which recently secured $2.5M in seed funding from Y Combinator.

• Vitra.ai: This company transcribes and translates videos in over 75 languages and was recognized by Google for Startups Accelerator India 2023.

• Rephrase.ai: Rephrase.ai company creates personalized AI-generated video content for brands and has raised $12M in funding, including a significant Series A in 2022.

• Minus Zero: Minus Zero has developed India's first autonomous vehicle, the zPod, and recently raised $1.7M in funding to lead India's self-driving technology sector.

★ Despite an increase in AI investments, India's expenditure as a percentage of GDP remains cautious.

Germany: A Strategic Shift and Lack of AI Adoption

Germany's engagement in artificial intelligence has seen a total investment of $14,300M from 2019 to 2023. However, the annual AI investment dropped to $1,808M in 2023, marking an 11.2% decrease since 2019. This downturn suggests that Germany may be undergoing a strategic shift or fiscal adjustments concerning its AI investment strategy, despite its significant contributions to the sector over the past five years. The conflict in Ukraine with Russia may have influenced this decline. Germany's AI investment relative to GDP stands at $5.89 per thousand dollars, which is a moderate yet declining commitment.

In November 2018