The economic landscape
OECD · OECD eBooks · 2019
This chapter describes the economic characteristics of artificial intelligence (AI) as an emerging general-purpose technology with the potential to lower the cost of prediction and enable better decisions. Through less expensive and more accurate predictions, recommendations or decisions, AI promises to generate productivity gains, improve well-being and help address complex challenges. Speed of adoption varies across companies and industries, since leveraging AI requires complementary investments in data, skills, digitalisation of workflows and the capacity to adapt organisational processes. Additionally, AI has been a growing target area for investment and business development. Private equity investment in AI start-ups has accelerated since 2016, doubling from 2016 to 2017 to reach USD 16 billion. AI start-ups attracted 12% of worldwide private equity investments in the first half of 2018, a significant increase from just 3% in 2011. Investment in AI technologies is expected to continue its upward trend as these technologies mature.