Learning to Love the AI Bubble

With investments in artificial intelligence rising rapidly, especially in China and the United States, two questions arise: Are we heading toward an AI bubble? Funding for AI Startups

Note: 2018 estimate based on extrapolation for U.S. and rest of world data from Q1 + Q2 to full year; for China extrapolation from Q1 to full year

Source: PitchBook (U.S., rest of world data); Tsinghua University — 2018 China Artificial Intelligence Report (China data); BCG Center for Innovation Analytics; BCG analysis

This article is part of an MIT SMR initiative exploring how technology is reshaping the practice of management. As shown in the accompanying exhibit, the average deal size — a rough proxy for valuation — has almost tripled over the past five the Authors
Philipp Gerbert is senior partner and managing director in the Munich office of Boston Consulting Group and a BCG Henderson Institute fellow exploring the impact of AI on business.

Source: sloanreview.mit.edu