AI deals hit by funding winter but VCs eye fresh opportunities

Some see potential applications in e-commerce, fintech in South-east Asia

Sharanya Pillai

Published Mon, Mar 27, 2023 · 05:50 AM

SOUTH-EAST Asian venture capital firms (VCs) are on the hunt for opportunities to invest in artificial intelligence (AI) startups, with the breakthrough of ChatGPT stirring fresh excitement. This comes after funding into the sector took a hit last year from tough market conditions.

VCs invested US$12.3 billion into AI in Asia-Pacific last year, down 46.5 per cent from 2021, according to analytics company GlobalData. The deal count meanwhile fell 5.3 per cent to 1,087.

Investor sentiment took a hit globally across the board, with volatile market conditions, and the AI sector was no exception, said Aurojyoti Bose, lead analyst at GlobalData.