Stanford’s 2019 AI report shows financial industry trends on investment, hiring

Published by Stanford University, the AI Index Report tracks, collates, distills, and visualizes data relating to artificial intelligence. Here are some of the highlights related to finance.

When it comes to the largest and fastest growing sectors for AI-related investment, the AI Index report found that globally, 4,403 AI-related companies were identified that received investment during the last year. From 36 distinct sectors, top focus areas included Data Tools (5.5% of all companies); Fashion and Retail Tech (4.7%); Industrial Automation, Oil & Gas (4.3%); Financial Tech (4.2%); and Text Analytics (4.2%). During that time period, these funded startups received a total of $55.7B in private investment, or roughly $12.6M per startup.

Autonomous Vehicles (AVs) received the largest share of global investment over the last year with $7.7B (9.9% of the total), followed by Drug, Cancer and Therapy ($4.7B, 6.1%), Facial Recognition ($4.7B, 6.0%), Video Content ($3.6B, 4.5%), and Fraud Detection and Finance ($3.1B, 3.9%).

Source: AI Index 2019 Report

Among sectors, finance has the largest number of AI mentions in earnings calls from 2018 to Q1 of 2019, followed by the electronic technology, producer manufacturing, healthcare technology, and technology services sectors. Earnings calls data includes all 3000 publicly-traded companies in the US, including foreign-listed companies that also trade on a US exchange.

The relative skill penetration rate metric is based on a method comparing the share of AI skills for each country against a global average/benchmark based on the same set of occupations. For a given country, the relative skill group penetration is the ratio between the penetration rate of a given skill group in each country and the global average penetration rate. Source: AI Index Report 2019 *China and India were included in this sample due to their increasing importance in the global economy, but LinkedIn coverage in these countries does not reach the 40% of the workforce. Insights for these countries may not provide as full a picture as other countries, and should be interpreted accordingly

In terms of sectors in the US labor market experiencing stronger AI diffusion via AI job demand: tech service sectors like Information have the highest proportion of AI jobs posted (2.3% of the total jobs posted), followed by Professional, Scientific and Technical Services (over 2%), Finance and Insurance (1.3%), Manufacturing (1.1%), and Management of companies (0.7%).

Read the full report

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