Spain is among the ten best countries for new companies related to artificial intelligence, its business environment and its financing of startups.
It is expected that the world market of generative artificial intelligencegrow between 30% and 40% each year. There is intense competition for attract new companies. Although USA is undoubtedly winning this battle today, some European countries They are also considered points of interest for the creation of new ‘AI startups.
Global AI Market Expected to Accelerate
The generative AI technologywhich generates new texts or videos and allows for faster product development, is a market that is booming. On a global scale, it was valued at more than 130,000 million euros in 2023. The latest report on AI from Stanford University indicates that the majority of private investment, €62.5 billion, took place in the United States in 2023, followed by China (€7.3 billion).
Both the EU like him United Kingdom received investments worth 9,000 million euros. Last year, the number of AI startups grew all over the world more than 40%.
The most attractive places for these companies in Europe
According to a new classification, USA takes the crown best country to start an AI company, with the highest number of newly funded AI companies, according to a report from AI spot management tool AIPRM.
Of the 14 countries analyzed, six are European. The report ranks the best countries to create an AI startup based on factors such as number of AI companies recently funded, the investment total private, research and development (R&D), the financing for ‘startups’ and the growth of income. The data used for this study comes from the Stanford AI report and the Deloitte study on the topic, among others.
Singapore got the second best score and Sweden is the thirdwith a prominent revenue growth of 1,127%. The business environment drove the score Swisswhich occupied the fourth place overall. Spain got a high score for its business environment and funding for start-ups and was positioned above Germany and France.
Germany also got a high score, but still seems to have a less favorable business and financial environment for start-ups than Switzerland, leaving Europe’s strongest economy in sixth place.
France obtained a score of 68.58/100 and was classified as the ninth best place in the world to create an AI company. France has a Total private investment in AI of $10.4 billion (9,420 million euros) and is the EU country with the highest number of newly funded AI companies. However, hiring by AI companies in France has decreased slightly in 2023 compared to the previous year. “Entrepreneurship in AI is increasingly competitiveas the sector continues to develop and grow at a rapid pace,” says Christoph C. Cemper, founder of AIPRM.
What Europe can gain
Generative AI could contribute 575.1 billion dollars (521,000 million euros) to the European economyaccording to global management consulting firm McKinsey & Company. This is equivalent to approximately one tenth of German GDP. To further assess Europe’s competitiveness in this emerging market, European organizations must adopt AI technologies more widely.
In the creation market, Europe only leads one of the eight segmentsthat of the teams semiconductors of AI. According to the McKinsey report, the continent has less than 5% market share in raw materials, AI semiconductor design, AI semiconductor manufacturing and cloud infrastructure and supercomputers.
To support investments, in January 2024, the European Commission launched an AI innovation package to support startups and SMEs of artificial intelligence. The report suggests continue increasing investmentsfor example in AI applications for the healthcare and defense sectors, and supporting programs aimed at retraining the workforce and retaining talent.
Another key element is to get competitive energy prices in Europe. AI is expected to accelerate data center energy demand, which could reach up to 5% of total electricity consumption at the end of this decade. In Europe, labor productivity has slowed, McKinsey research estimates that generative AI could boost the annual growth rate of the productivity European Union up to 3% until 2030.
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