AI booms in venture capital investments in 2024

​​​​​​​By Nuran Erkul and Emir Yildirim

LONDON (AA) – Artificial intelligence (AI) startups became one of the most invested sectors by venture capital funds in 2024, making up 35.7% globally.

AI accounted for 45.8% of capital venture investments in the US, 25.6% in Europe and 19.3% in Asia, according to data from the financial data provider PitchBook, compiled by Anadolu.

Venture capital financing provided to AI reached $62.2 billion in the fourth quarter, while four major investments in the field amounted to $26.6 billion, data from the global consultancy firm EY showed.

Global venture capital funds in AI exceeded $180 billion in 2024, up 27% year-on-year, according to EY.

Carolina Dams, dean of IAE Business School in Argentina, told Anadolu that she sees the recent boom in AI as an opportunity for growth, as AI entrepreneurs “will be able to leverage AI technologies at a low cost to develop new companies and applications across various fields.”

“Venture capital investment trends show that, after a decline in the past few years, funding is now increasing again, mainly driven by AI,” she said. “The game is just beginning, and it’s difficult to predict the near future -- the speed at which AI and entrepreneurs are changing industries is so fast that it’s challenging to keep up.”

Dams stated that AI has a wide reach and it is important to understand which sectors can have the biggest impact.

“It’s a time to explore, learn and make small investments while waiting to see how things develop,” she said, suggesting a “wait-and-see approach.”

“With the rise of DeepSeek in China and the competition between open-source and proprietary platforms, the future remains uncertain -- what is clear is that now is not the right time to make large investment decisions in technology, due to the rapid pace of change and the uncertainty about what will happen,” she added.

Dams highlighted that AI offers various opportunities in emerging markets, enabling the development of startups with smaller teams and fewer resources.

She noted that emerging economies may face challenges in access to finance and education but they can take advantage of AI and the many opportunities it brings in the process.