The number of AI startups (top) is shown on the left, compared with total startups on the right..AI investment (below) is shown on the left, compared with total investments on the right..This speaks to huge opportunities to use machine learning in different industries, but also to a market that is hyped and overheated..The focal points are China and the US, but also Europe..Much has been made of China’s rising AI prowess (see “China’s AI awakening”) and its growing rivalry with the US..As the data shows, Europe is also a huge hub of AI activity2.But it seems that three main centers of power are emerging..Diversity is a key challenge..Many researchers have pointed to the inadequate number of women and racial minorities in AI research..The new report offers some data to back that up, showing a shortage of women among applicants for AI-related jobs (top) and as a percentage of people in AI teaching roles (bottom)..The state of the art is improving fast..The report includes several measures of technical progress, including the accuracy of object recognition in images, measured against average human performance (top), and the accuracy of machine translations of news articles, measured using a score assigned by human judges (bottom)3. More details