The AI industry is booming right now, with many businesses competing for people’s attention. This time, we’d like to list the best AI companies to invest in 2024, covering different industries. These are either businesses with a lot of promise or ones that have already made a buzz on the market. Our only main condition is that they have to use AI to innovate; the rest is flexible.
As you will see, this list isn’t just about helping you find the next big thing but also about highlighting how AI is transforming markets. We want to spotlight the power of AI and show what the future holds for the technology. With that said, let’s talk about the optimal AI companies to invest in.
Why Investors are Investing Billions in AI Startups
There have been some high-profile investments in AI-centric companies as of late, such as Microsoft giving OpenAI a whopping $1 billion in 2019. That was a powerful enough signal about the validity of AI. Yet, Microsoft didn’t stop there, announcing even larger investments in 2024. Its long-term commitment to OpenAI is arguably as powerful as the deal itself.
That kind of interest in new AI companies to invest in, for a lot of corporations, hinges more on their potential than their current status. With technology being refined daily, existing applications are just a taste of new features. This prompts significant financing as the industry is in a state of constant growth.
What are the Most Common AI Applications in Today’s Business?
It’s hard to pinpoint just one leading use of AI, as most industries have already begun using AI-powered solutions. The most talked about may be generative models, such as Midjourney or ChatGPT, but they are not the most transformative. We’ll base our list on applications that are changing the landscape and pushing AI companies to invest in further research:
- AI-powered recommendations
- Processing tools for social media, such as auto-translations and adaptive text
- Weak point identification for cybersecurity
Put simply, AI-based recommendations are changing how e-commerce works, making upselling easier. These smart algorithms pinpoint exactly what a customer could want, based on their prior activity, and thus increase conversion rates exponentially.
Social Media Tools
AI algorithms can be used to create alt text for images, an essential accessibility feature. For a broader audience, it can also be used to offer refined translations. With a well-trained model, the cost could eventually be a fraction of what Google Translate API usage costs.
Used as an extension of a regular team, AI can do brute-force testing, eventually helping uncover any weak points. The AI solutions can be run pretty much around the clock, guaranteeing better detection and, thus, helping catch and fix any severe security issues. If you’re on the lookout for AI companies to invest in, cybersecurity solutions are at their peak.
Success Stories of Funded AI Ventures
There are quite a few companies on the market right now that are being funded with ambitious projects. To highlight some of the most impressive, we’ll split them by the field where their solutions are applied. Any of these could land on a list of the best AI companies to invest in 2023.
Healthcare: Revolutionising Patient Care and Diagnostics
One of the best examples of AI being used for disease prevention is Freenome. This startup uses artificial intelligence to detect cancer with 93% sensitivity, beating out the current pancreatic cancer tests. This is a transformative development for patients, as swift and affordable cancer detection will inevitably lead to early treatment, with a higher chance of success.
On the patient care side, Babylon Health, a UK-based startup, uses AI to provide health services. This includes symptom detection, future health forecasts, and even decisions on hospitalisation. While the service has gone private, meaning it’s no longer one of the new AI companies to invest in, similar businesses, such as the US-based Olive, exist.
Renewable Energy: Pioneering Sustainable Solutions
Perhaps the biggest problem facing the renewable energy sector is the storage cost. That makes Stem, a US-based startup, a prime solution on the market. Their Athena AI helps maximise savings, reduce GHG emissions, and prioritise long-term success and sustainability. With their AI named Product of the Year, Stem is one of the top AI companies to invest in.
Meanwhile, Drishya, a Canadian startup, looks to make renewable energy smarter. Using its VoltOS AI, the company helps curate energy flows within microgrids. In simpler words, it helps route the power where it’s needed, predicting how much energy will be required in specific grids on a localised level. This prevents energy waste and helps keep energy prices down.
Finance: Enhancing Fraud Detection and Financial Analysis
Booming on the market is Enova, which closed a $550 million funding round last year. The company uses AI and machine learning to do credit assessments. It’s mostly serving small businesses to help streamline the process of acquiring loans. This model has made Enova the centre of attention and one of the prime AI companies to invest in.
DataRobot is a US startup that specialises in predictive models. These AI-powered solutions help detect fraudulent payments, assess risks, and manage money lending. Unlike Enova, DataRobot is focused on working with financial institutions, not their customers. Thanks to a $6.3 billion valuation, the firm is considered one of the top AI companies to invest in.
Manufacturing: Optimising Production and Supply Chains
Some companies in the AI market have grown beyond scrappy underdogs thanks to high-quality solutions. Databricks is an example of this success story, with $1.6 billion raised in their 2022 funding round.
Unquestionably among the most attractive AI companies to invest in, Databricks uses machine learning to forecast demand, optimise supply chains, and provide certainty. Their Lakehouse platform is focused solely on eliminating the long wait times that come with traditional data analysis. Instead, the AI-powered solution provides fast forecasts and helps plan production optimally.
Ecosystem of AI Entrepreneurship
The current boom is pushing AI companies to invest in 2024 growth. As Microsoft and Google are funding a lucky few, other startups are in heated competition. This creates the right environment for new technology to appear and older models to be perfected. That is where investors come in, helping new companies get their start and achieve their potential.
Grand View Research is projecting a 37.3% compound annual growth rate for the AI industry until 2030. With this powerful expansion and a bright forecast for the future, it’s best to find a venture to join now. As time goes by, the industry will only get more lucrative. With that said, let’s talk about AI companies to invest in 2024.
Best AI Companies To Invest In 2024
Curating a list of businesses to fund is a difficult task in the AI sector because there are so many good candidates. We will split our recommendation into two parts: listing only relatively new AI companies to invest in and the most promising ones with some years behind them. This way, you can find the next big thing with certainty.
Top New AI Companies to Consider for Investment
The first company we’d like to recommend is Gridware. Focused on smarter energy use, Gridware’s AI model predicts and detects faults in the grid, helping avoid outages. In addition, it tracks the upkeep of energy elements, guaranteeing that they get proper care and thus last longer. If you want AI companies to invest in our future, Gridware is the one to watch.
We mentioned that online security is one of the more popular AI applications, and Abnormal Security is deep in that market. The company’s proprietary algorithm helps detect malicious emails going beyond regular spam. It prevents phishing attempts, protecting users from account takeovers. Within just a few years on the market, Abnormal Security has made a real splash.
Labelbox is another prominent new name because its purpose is making and categorising datasets for AI training. Operating as a platform where AI businesses can collaborate. Creating a space for AI companies to invest their time and data paves the way for new, exciting developments within this technology’s space.
Best AI Startups To Invest In 2023
Now for optimal AI companies to invest in 2023, ones that will reach new heights in the next couple of years. We’ll start with Tempus, a US-based startup specialising in healthcare. This company has one of the largest medical databases, making research easier and decisions evidence-based. It’d be smart to get on board this year because Tempus is growing fast.
AssemblyAI is a rising star in the text-processing market. Their speech-to-text tools are cutting-edge and ready to rival proprietary solutions from far larger corporations. Its potential for usage in analytics and media transcription opens up a broad target audience. With that comes the chance for long-term success, making it one of the most promising AI companies to invest in.
For those who want something that they can integrate with their own business, Capacity is a curious project. Using AI learning, their model analyses customer and support interactions and helps make them more efficient and satisfactory. It automates some of the decisions that support employees have to make and frees up their time for more in-depth ticket resolution.
Predictions for the Future of AI Entrepreneurship
As reflected by our list of the best AI companies to invest in 2023, the AI space is booming, with powerful players entering the market. We expect self-learning systems to be a major new trend, with already common energy solutions taking an even bigger portion of the market. Generative AI will also skyrocket as models such as ChatGPT become more refined.
In all, the future seems bright, and we hope you find AI companies to invest in 2023 because the competition is heated. At this stage, it’s still possible to enter the market with a solution of your own, developed by S-PRO’s skilled AI team. Get in touch now to make sure your company will be listed alongside other greats in the industry.