Global investment into Artificial Intelligence more than doubled in the last year, reaching record highs as the world emerges from the initial onset of the Covid-19 pandemic, data from Tortoise Intelligence has found. 

The Tortoise Global AI Index, in its fourth iteration, measures national AI preparedness across more than 120 indicators. Its findings reveal that total AI investment reached $77.5 billion in 2021. The previous record, set last year, was $36 billion.

The key findings reveal that the US has benefited most from this investment drive. US-based companies pulled in two-thirds of total global venture funding in AI in 2021 – or $51 billion worth of investment.

The amount of funding flowing to each country is one of over 120 data points that Tortoise tracks in its ranking of 62 countries on their capacity for AI development.

The Tortoise Global AI Index ranks nations by AI preparedness. It analyses metrics including investment into AI, the strength of a nations’ talent pool, the quality of its research, supercomputing capabilities, and the level of ambition and muscle behind national government strategies. 

The results find that the US has retained its position as the number one AI nation, followed by China in second and the UK in third. The top three spots remain unchanged since the last iteration – and indeed since the Index was first launched.

A sudden, urgent need for digital collaborative spaces and remote working tools during the pandemic forced business leaders to understand the vital need for digitisation, says Michael Chui, partner at the McKinsey Global Institute. This includes AI and automation.

It should come as no surprise, then, that investment in AI is growing at an exponential rate. 

AI funding this year has been buoyed by a number of large investments into autonomous driving tech, with companies working on everything from robotaxis to modular chassis for autonomous cars receiving some of the biggest AI-related funding rounds of 2021. Globally, 31 per cent of all AI funding went into companies in the transport sector, but China is a clear leader in this area, with just over half of its funding going into transport tech.

Health-related AI also attracted a sizable share of global funding – at 10 per cent of the total – as a global medical crisis drove investors to seek AI-driven solutions for healthcare problems, from tools that help diagnose illnesses to AI-driven apps that connect doctors and patients. The UK far outstrips China and US in this area – drawing in 20 per cent of its funding for healthcare startups.

Fintech-focused companies also pulled in a substantial share, representing six per cent of all funding, while Privacy and Security companies made up four per cent.

It’s clear from the findings that it’s AI boom time. After a slowdown in 2020, the amount of funding into AI looks like it is back to a trajectory of exponential growth. Government strategies in artificial intelligence are becoming more common, too. The question for the countries in our Index is who will keep up with the pace of AI.

• Read the full index here