Between 2016 and 2021, the top-funded artificial intelligence (AI) startup company in the United States was that of the New York company UiPath, with almost two billion U.S. dollars in total equity funding. Other noteworthy U.S. AI startups were that of Nuro, Indigo Ag, and Tempus. These were all startups with over one billion U.S. dollars in equity funding. Many of these startups are robotic process automation (RPA) companies that are situated in a growing market.

AI funding

The North American artificial intelligence market, anticipated to be valued at 20 billion U.S. dollars, continues to grow driven by the influx of investments it receives. Over the past decade or so, the global funding of artificial intelligence startups has grown dramatically, with the United States contributing a significant portion of the overall AI funding each quarter. Another noteworthy country for private investments in AI is China.

AI in China and the U.S.

China, similar to the U.S., is a country at the forefront of artificial intelligence. Of the two most valued AI unicorn companies in the world, ByteDance and UiPath, China and the U.S. maintain the headquarter locations of each of the startup. ByteDance, a Chinese artificial intelligence (AI) company that created the AI and machine learning algorithms for TikTok (known as Douyin in China), is the largest AI unicorn startup in the world, with a valuation of approximately 140 billion U.S. dollars. It is worth noting that although the U.S. is considered the highest-ranked government on the worldwide index for AI readiness, China may be more advanced than the U.S. in terms of AI implementation in the public sector, as it has made implementing AI capabilities to public services a top government priority.

The statistic shows the number of startup companies working in the various segments of the artificial intelligence (AI) market worldwide, as of March 2016. As of that time, 260 startups had been formed worldwide to work on machine learning for applications.

The statistic shows amount of external investment in artificial intelligence (AI) companies worldwide, by technology category, in 2016. That year machine learning companies received the most investment, estimated at between five and seven billion U.S. dollars.

In the third quarter of 2020, funding for artificial intelligence (AI)-focused companies reached 4.7 billion U.S. dollars in the United States. This quarter’s funding was the second largest over this four-year time period. Overall, artificial intelligence funding investment in the U.S. has significantly grown over the past few years.

AI investment in the U.S.

The United States leads in private investments in AI when compared with other regions around the world, especially considering that the top three investors for AI investments in the world are U.S. companies, namely Intel Capital, 500 Startups, and Y Combinator. The U.S.’s dominance in AI investment contributes to its increased role in the global AI industry. When compared with other countries, it is deemed as the most AI-ready government, which means that the U.S. is considered the country best situated in the world to implement AI within public services, from healthcare to education to transportation. Moreover, North America currently makes up the region with the most AI patent publications, which may also contribute to the U.S.’s dominant role in AI.

AI adoption in U.S. companies

AI has already been implemented in many organizations within the United States, with many of those who do not currently use AI planning to use it in some capacity in the future. This is not overly surprising given that companies who have fully embraced AI see more of a positive impact on their organizations than those who have not done so. The leading AI and analytic application for U.S. organizations is managing risk, fraud, and cybersecurity threats.

In 2022, the global total corporate investment in artificial intelligence (AI) reached almost 92 billion U.S. dollars, a slight decrease from the previous year. In 2018, the yearly investment in AI saw a slight downturn, but that was only temporary. Private investments account for a bulk of total AI corporate investment. AI investment has increased more than sixfold since 2016, a staggering growth in any market. It is a testament to the importance of the development of AI around the world.

What is Artificial Intelligence (AI)?

Artificial intelligence, once the subject of people’s imaginations and the main plot of science fiction movies for decades, is no longer a piece of fiction, but rather commonplace in people’s daily lives whether they realize it or not. AI refers to the ability of a computer or machine to imitate the capacities of the human brain, which often learns from previous experiences to understand and respond to language, decisions, and problems. These AI capabilities, such as computer vision and conversational interfaces, have become embedded throughout various industries’ standard business processes.

AI investment and startups

The global AI market, valued at 142.3 billion U.S. dollars as of 2023, continues to grow driven by the influx of investments it receives. This is a rapidly growing market, looking to expand from billions to trillions of U.S. dollars in market size in the coming years. From 2020 to 2022, investment in startups globally, and in particular AI startups, increased by five billion U.S. dollars, nearly double its previous investments, with much of it coming from private capital from U.S. companies. The most recent top-funded AI businesses are all machine learning and chatbot companies, focusing on human interface with machines.

As of April of 2020, four new artificial intelligence startups had been founded in China. In the previous year, the total number amounted to 32. Since the number of newly founded AI-companies peaked in 2016, the number dropped by almost 200 business from 228 new startups to 32 new startups within four years.

The statistic shows total acquisition costs for artificial intelligence (AI) startups in Israel by acquirer from 2006 to 2018. Salesforce spent a total of 830 million U.S. dollars on the acquisitions of Blue Tail (2012), Implisit (2016), and Datorama (2018).

The statistic shows share of companies investing in artificial intelligence (AI) worldwide, by industry, as of 2016. As of that time, 32 percent of software and information technology services companies were investing in artificial intelligence.

The amount of money invested annually into startup companies working in the artificial intelligence (AI) market worldwide has continuously increased from 2014 to 2021. In 2020, AI startups attracted around 36 billion U.S. dollars in investment. Just in the first six months of 2021, this figures was surpassed and reached 38 billion U.S. dollars.

Explore North America Artificial Intelligence in Healthcare Market, including size, share, growth, trends, and industry analysis, with forecasts extending to 2033.

According to a 2019 global AI survey, most respondents reported spending of less than 50 million U.S. dollars on AI initiatives in the three years prior to 2019 in their companies. Nine percent of respondents reported expenditure of over 500 million on AI initiatives during that time span.

The Nigerian startup Kudi was founded in 2016 and is focused on financial technology. It raised 5.9 million U.S. dollars in funding and was followed by the South African startup Aerobics, with 4.8 U.S. dollars raised to develop a geospatial intelligence.

The Saudi Arabia Big Data and Artificial Intelligence Market Report is Segmented by Solutions (Hardware, Software, Service), Organization Size (SMEs, Large Enterprises), and End User (IT and Telecom, Retail, Public and Government Institutions, BFSI, Healthcare, Energy, Construction and Manufacturing, and Other End Users). The Market Size and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The market will reach USD 45 billion in 2025 and expand to USD 130 billion by 2035, reflecting a CAGR of 14.0% during the forecast period. Companies are increasingly leveraging AI-driven Partner Relationship Management (PRM) solutions, cloud-based PRM platforms, and real-time analytics tools to boost channel partner engagement and optimize business partnerships. Furthermore, investment in automated partner onboarding, data-driven performance monitoring, and partner ecosystem development will drive growth.

Contracts and Deals Analysis

Country-Wise Analysis

Competitive Outlook

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Insurtech Market Size 2025-2029

The insurtech market size is forecast to increase by USD 114.39 billion at a CAGR of 43.6% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing need for businesses to enhance operational efficiency and reduce costs. Traditional insurance processes are being revolutionized through digital transformation, automation, and data analytics. This shift is particularly evident in areas such as underwriting, claims processing, and customer engagement. Moreover, investors are recognizing the potential of InsurTech firms and are collaborating to bring innovative solutions to market. However, the high cost of investment in technology and regulatory compliance remains a challenge for market entrants. Despite this, the market presents substantial opportunities for companies seeking to capitalize on the digitalization of the insurance industry. Strategic partnerships, collaborations, and mergers and acquisitions are key strategies for companies looking to navigate this dynamic landscape and stay competitive. Overall, the market is poised for continued growth, offering significant potential for companies that can effectively address market challenges and capitalize on emerging trends.

What will be the Size of the Insurtech Market during the forecast period?

Request Free SampleThe market, a dynamic intersection of insurance and technology, continues to evolve at an unprecedented pace. This sector's growth is driven by the increasing demand for ultra-customized insurance policies and advanced risk assessment capabilities. Leveraging technologies such as machine learning, artificial intelligence, and cloud computing, insurtech companies are revolutionizing the industry. These innovations enable more accurate underwriting, streamlined claims processing, and personalized customer experiences. Insurance products, including auto, marine, liability, buildings, and home insurance, are being transformed. Machine learning algorithms analyze vast amounts of customer data to tailor policies and pricing based on individual risk profiles. Social insurance, a subset of insurtech, is also gaining traction, utilizing data from various sources to assess risk and provide more comprehensive coverage. Business analytics and deployment models like Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) are increasingly adopted for their scalability and cost-effectiveness. Insurtech's future lies in continued innovation, with a focus on enhancing customer engagement and optimizing operational efficiency.

How is this Insurtech Industry segmented?

The insurtech industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ApplicationMarketing and distributionIT supportClaim managementPolicy administration and managementOthersDeploymentOn-premisesCloudGeographyNorth AmericaUSCanadaMexicoEuropeFranceGermanyItalyUKAPACChinaIndiaMiddle East and AfricaSouth AmericaBrazil

By Application Insights

The marketing and distribution segment is estimated to witness significant growth during the forecast period.The market is experiencing significant growth due to the increasing adoption of digital solutions in the insurance industry. Customer needs are at the forefront of this transformation, with insurance companies leveraging technology to improve decision-making, insurance planning, and real-time tracking and monitoring. Machine learning and artificial intelligence are key technologies driving innovation, enabling predictive modeling, fraud detection, and usage-based insurance. Cloud computing and data integration facilitate seamless data access and processing, while blockchain security ensures data privacy and security. InsurTech platforms offer a range of digital tools, including policy automation, risk analytics, claims processing, customer portals, and telematics devices. These solutions cater to various business lines and niche customers, with applications in auto, marine, liability, buildings, and home insurance. The integration of AI chatbots, premium calculators, insurance APIs, and smart contracts further enhances the customer experience. Overall, the market is revolutionizing the insurance industry by streamlining processes, improving efficiency, and meeting evolving consumer needs.

Get a glance at the market report of share of various segments Request Free Sample

The Marketing and distribution segment was valued at USD 3.22 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 51% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape

The highest number of companies that introduced artificial intelligence in Poland was reported in 2016- 2017. The low percentage of companies in 2020 could be due to the COVID-19 pandemic outbreak.

This statistic shows the number of conversational artificial intelligence M&A deals from 2016 to 2019. The number of conversational AI deals has boosted since 2016, reaching a high of 23 acquisitions in 2018. As of August 7. 2019, 21 conversational AI companies have already been acquired since the beginning of the year.

This statistic shows the IT spending by insurance companies on cognitive/artificial intelligence technologies worldwide in 2016 and 2021, by type. In 2016, the global insurance industry spent 76 million U.S. dollars on software for cognitive/AI technologies, which is due to rise to 571 million U.S. dollars by 2021.

By far the largest share of investment in Moscow-based medical startups processing Artificial Intelligence technologies was occupied by innovative companies developing virtual assistants. Nearly 80 percent of the investment volume was allocated into that segment between January 2016 and August 2020. Companies working on genetics and mental health followed, each accounting for approximately seven percent from the total.

In 2024, South Korean company Wonderful Platform was named one of the South Korean Artificial intelligence (AI) companies of the year for the sixth time. Established in 2016, the company provides service platforms that are powered by AI.