Artificial Intelligence (AI) techniques are increasingly utilised and are at the forefront of research, development, and innovation. This trend is highlighted in a report by the European Commission and is further evidenced by the rising number of patents and scientific publications

Investments in AI-based solutions and systems within research and development are witnessing consistent growth, with applications across various sectors. This trend is corroborated by the ‘EU Industrial R&D Investment Scoreboard’, a European Commission report evaluating industrial R&D investments within the European Union. Now in its twentieth iteration, this report serves to monitor and analyse trends in industrial R&D investments against the EU’s policy objective of achieving R&D investments equalling 3% of GDP, a crucial indicator of the EU’s long-term competitiveness.

The report extends beyond the European context, offering a global perspective, particularly focusing on the activities of the top 2500 R&D investors worldwide. These entities set a record in 2022, with total investments nearing 1250 billion euros, representing approximately 86% of the globally corporate-funded R&D, emanating from companies in 42 countries.

In the previous year, these entities invested 141 billion euros more in developing new products and technologies compared to 2021. This investment primarily bolstered production and services within the ICT, healthcare, and automotive sectors.

The top 50 companies alone contribute to roughly 40% of the total investment. The significance of AI in R&D is apparent from the rankings. Among the top ten, following tech giants like Alphabet, Meta, Microsoft, and Huawei – companies heavily involved in AI – are Volkswagen, Johnson & Johnson, and Roche. The German automotive group has long utilised AI for process innovation and various experimental activities, including autonomous driving. Johnson & Johnson was a leading innovator in AI application for clinical trials in early 2022, securing 48 AI-related patents, closely followed by Roche with 42.

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TAKEAWAYS

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Artificial Intelligence in Research and Development: Dominance in the Digital Ecosystem

AI’s role in research and development is central to the digital techno-economic ecosystem (DGTES), as detailed in the report: AI-related patents have nearly tripled from 2009 to 2022, growing from 6% to 17% and currently representing 20% of all patents.

Since 2009, AI research and development have also seen significant growth in scientific journals, patents, and commercial activities. The report highlights the rapid increase in AI patent rates from 2015, particularly due to significant patent activity in China.

AI’s digital dominance encompasses various technological solutions like natural language processing, machine learning, deep learning, human-machine interface, visual and vocal recognition, and neural networks. However, the report clarifies that its analysis of the AI ecosystem excludes technologies or applications enhanced by AI that are not integral to the AI technological ecosystem, such as robotics, virtual/augmented reality, and High-Performance Computing.

The EU Commission document notes that from 2009-2022, over 110,000 entities (including companies, universities, research institutes, and government organisations) engaged in AI-related research, development, innovation, or industrial activities worldwide. This accounts for over a fifth of the 600,000 digital actors identified by the DGTES, involved in about 190,000 activities, equating to 16% of all activities in the global digital ecosystem.

The AI ecosystem is vast, covering sectors from manufacturing to construction, water resource management to the arts. The most active sectors in AI are ICT (29% of operators) and education (18%), followed by professional, scientific, and technical activities (15%) and manufacturing (12%).

Regarding the top AI patent-holding companies, the top three each have over seven thousand AI-related patents for 2009-2022, with IBM leading with nearly nine thousand. The report also recognises this company as the most active in generative AI among the top 100 publicly traded US companies.

The EU Commission document refers to a National Bureau of Economic Research article, highlighting the ‘ChatGPT factor’ as potentially exerting positive competitive pressure on companies heavily involved in generative AI and large language models. This suggests increased motivation for innovation in AI and related activities.

Lastly, the document emphasises the main geographical areas of dynamic AI research and development: the United States, China, and the EU, hosting about 70% of the world’s operators and 76% of AI activities. China leads in the absolute number of AI-engaged entities (38%), followed by the US (20%) and the EU (11%), with the latter having a higher proportion of research institutes engaged in AI than China (9.5%) and the US (4%). The US hosts the largest number of companies involved in industrial AI activities (34%), followed by the EU (19%).

The Growth of AI Patents and Publications

The increasing use of AI algorithms and techniques in R&D is evidenced by the surge in patents, publications, and research documents.

From 2002 to 2018, annual AI patent applications soared, reflecting a wave of innovation as companies rushed to protect this intellectual property. According to the ‘Inventing AI’ report by the U.S. Department of Agriculture’s Office of the Chief Economist, while only 1% of patent holders were in AI in 1976, this number escalated to 25% by 2018.

Publications from 2010 to 2021 more than doubled, from 200,000 to nearly 500,000, as reported by Stanford University’s AI Index.

AI adoption is cross-sectoral, notably impacting healthcare. Stanford University’s Artificial Intelligence Report 2023 highlighted the medical and healthcare field as the area with the highest AI investment, totalling 6.1 billion dollars. The US Food and Drug Administration anticipates a more than 30% increase in AI and machine learning-enabled devices in 2023 compared to 2022.

AI’s prevalence in R&D is also evident in its application in the energy sector. In Denmark, 66% of large companies have implemented AI. Among Danish companies in a report on AI’s role in Northern European countries, 46.2% are in the IT & Services sector, with energy as the second most significant sector, representing 15.4% of the sample.”