With remarkable speed, AI has evolved from an intriguing concept into a practical business tool that is drawing large investments and more regulatory oversight.
The launch of generative AI (GenAI) tools in late 2022 helped fuel what had been a steady adoption of AI. Tech companies that develop GenAI began popping up across the globe, attracting investor dollars. Businesses in industries such as life sciences, finance, and real estate started pouring money into AI that can discover drugs, generate code, and predict market trends.
In response to these swift advancements, states have passed more legislation targeting AI, and federal agencies have ramped up regulatory governance of AI. Still, the US has not passed comprehensive federal AI legislation akin to the European Union's AI Act.
Here are five charts that highlight the meteoric rise of AI and related legal developments, which we at Goodwin are closely monitoring and helping companies address.
Number of Newly Funded GenAI Startups Surges
In 2023, 99 new GenAI startups globally secured funding, nearly doubling from a year earlier.
Investment in GenAI Startups Soars
Global funding for GenAI startups shot up to $25 billion in 2023 from $3 billion a year earlier. The investment spree in GenAI companies occurred despite a slowdown in the broader tech sector.
State-level AI Legislation Takes Off
States proposed more than twice as many AI-related bills in 2023 than in the previous year. They also passed 38 AI bills into law, far outpacing AI lawmaking at the federal level. California enacted seven pieces of AI legislation last year, more than any other state.
Federal AI Regulations Increase
US federal agencies issued 25 AI-related regulations in 2023, up from 16 in 2022 and one in 2016. The Executive Office of the President and the Commerce Department led last year's regulatory push, with each issuing five AI-related regulations. Further, a wider array of agencies issued regulations targeting AI last year than in 2022.
AI Patents Have Risen Sharply
The number of AI-related patents granted globally has climbed particularly fast in recent years. In 2022, about 62,000 AI-related patents—or those relevant to the development of AI and robotics—were granted, up 63% from the prior year.
The swift rise in GenAI investment and innovation over the past year and a half has likely spurred more innovators to apply for AI patents. However, patent law could make it difficult for some applications to get approval, particularly in instances where AI played a role in the inventive process.
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