by Puneet Pandit
03 Mar, 2024
The world of AI is on a tear. Make no mistake about the fact that AI revolution is going to transform many industries and applications dramatically over the next 5-10 years. And the three countries that make Mirai Capital investment thesis real – US, India, and UAE – are going to play a predominant role as leaders in this revolution. Looking back at the past a bit, we all understand the 200-year-old history of economic revolutions that were powered by the tech led innovations in agriculture, industrial, computers, and finally Internet in the 1990s. Since then, many more innovations came about but nothing was as transformational as AI today. Although AI as a concept is as old as when the computers were born, it is now as real as it can be, especially with the Generative AI applications. Reason is its democratization with an immense pool of ever-growing data and computing power to harness AI intelligence to the nth level. As a result, the AI market is projected to experience significant growth over the next decade. Bloomberg forecasts that the generative AI market will reach $1.3 trillion by 2032, growing at a CAGR of 42% over the next 10 years. The biggest industries that are experiencing disruptive growth with AI revolution include Healthcare, Cleantech, Deeptech, and Manufacturing. Read my blog here that I wrote in Jan to get a deeper perspective on AI's impact on these industries and more. Here are some great examples of AI impact with real businesses today… Google reduced energy use for cooling by 40 per cent at one of its data centers recently by applying machine learning from DeepMind, its AI arm, by forecasting variables such as demand and weather. Pfizer used AI recently to cut down new drug launch time from 4 years to 4 months. In essence, the whole concept of drug discovery has transformed into drug design since AI can mimic several stages of discovery. Gucci increased its revenues by 30% by introducing Gen AI platform for its predictive and conversational abilities into their 30+ Customer Care centers in Milan, Italy. The US leads the way in AI revolution, with almost 60% of “top tier” AI researchers and $249 billion in private funding. Silicon Valley alone is the home of some of the most prominent companies in the industry, including OpenAI, Google, Meta, and Anthropic, who've contributed to producing leading products, including GPT-4, DALL E-3, Bard, Llama 2, and Claude 2. India is the largest country in South Asia and the region's most significant contributor to AI research. Last year, India raised $3.24 billion, making it the 5th country with the most AI investment. India is also estimated to have the highest penetration rate of AI skills among all G20 and OECD countries. Many people don't know this fact that UAE was the first country in the world in 2017 to have a dedicated ministry on AI. His Excellency Omar Sultan Al Olama was appointed as the Minister of State for Artificial Intelligence in October 2017. Per his recent speech at a conference, a massive influx of tech workers since 2021 is helping fuel the region's AI ambitions. As of September, there were 120,000 people working on AI or AI-related industries up from 30,000 two years prior. Under HE Al Olama's leadership, UAE has published an AI National Strategy for 2031 that estimates that by 2030 AI will have a global market value of $15.7 trillion, boosting the UAE's GDP by 35 percent and reducing government costs by 50 percent. The biggest impact areas for AI will be driven through the ability to automate labor-intensive sectors, such as retail and healthcare. There is more to read on UAE AI strategy at their dedicated website here. Per recent reports by Wall Street Journal, OpenAI CEO Sam Altman is in talks with several investors including UAE to raise as much as $5 trillion to $7 trillion for AI chip manufacturing. The funding seeks to address the scarcity of graphics processing units (GPUs) crucial for training and running large language models like those that power ChatGPT, Microsoft Copilot, and Google Gemini. Altman has also recently remarked that the UAE could be a strategic partner to serve as the world's “regulatory sandbox”, a place to experiment with AI technologies and later spearhead global rules limiting their use. Overall, it is exciting times for the world of AI. We at Mirai Capital are looking forward to partnering closely with Venture funds and companies in this space to spearhead the next wave of AI revolution. Sources:
