VC AI Funding to Rebound After 2020's ‘Hiccup’: ABI

COVID-19 forced a nearly 34% decline in 2020 venture capital funding for AI to $15 billion, but a strong rebound is “imminent” for 2021, reported ABI Research Wednesday. VC rounds were reduced due to lockdown measures, and VC firms deferred much dealmaking due to macroeconomic uncertainty, it said. It also blamed U.S.-China trade tensions for cooling investor enthusiasm. ABI sees 2020 as “a slight hiccup for an otherwise steady increase in AI investments. AI VC funding this year through June was around $14.5 billion, “already closing in on 2020’s amount, and is very likely to exceed the 2019 figure,” it said.