2025 Insights: Venture Capitalists Invest $13B in AI Amid Economic Shifts
Explore how 74% of venture capitalists globally invested in AI startups in the past year, highlighting AI’s disruptive potential and funding trends in 2025.
As artificial intelligence (AI) continues to revolutionize industries worldwide, venture capitalists (VCs) are significantly increasing their investments in AI-driven startups and technologies.
According to a recent 2024 survey conducted by PitchBook and Collision, nearly three-quarters (74%) of global VCs have invested in AI or machine learning (ML) companies within the last 18 months. Investors consistently identify AI as the leading technology poised to disrupt multiple sectors.
Key Highlights
- 74% of global venture capitalists made at least one AI or ML investment in the past year.
- AI is recognized as the top disruptive technology by investors worldwide.
- Since 2017, the number of companies leveraging AI has more than doubled, fueled by advancements in service operations, AI-based tool development, and customer service analytics.
Despite the promising outlook, funding has faced challenges due to macroeconomic uncertainties and rising interest rates. In the first quarter of 2024, VCs raised $13 billion in funds—a significant drop from $78.1 billion during the same period in 2023, as reported by EY. Over half of investors surveyed by PitchBook expressed reluctance to raise new funds, with 54% anticipating fundraising difficulties over the next year.
Nonetheless, investment activity remains resilient: nearly 68% of respondents maintain a near-normal investment pace, and only a small fraction (3.4%) have paused investments temporarily.
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