European technology is starting to recover, and artificial intelligence is stimulating this recovery, as the European continent is now home to more highly skilled professionals in this field than the United States, according to new research conducted by the British company Atomico, as this overtaking comes after a decade of rapid progress. The number of people working in the field of artificial intelligence across Europe has increased by a whopping 1,000%.
The pipeline of talent is now flowing to some startups, and in 2023, AI companies raised 11 out of 36 mega rounds in Europe worth $100 million or more, and they include French AI company Mistral, which received €105 million in its largest seed round. ever on the continent, and Alpha, which this month secured €460 million in a second financing round.
The pattern extends to the new herd of European unicorns. Of the seven companies that will reach $1 billion this year, four are focused on AI: DeepL, Helsing-ai, Synthesia, and Quantexa, and their successes have helped Europe's ecosystem recover to $1 billion. A total of $3 trillion – equivalent to its peak in 2021.
“Today’s European tech environment looks more stable than at any time since the start of the pandemic, and this brings with it greater certainty, predictability and overall confidence throughout the ecosystem,” Tom Wehmeyer, head of intelligence at Atomico, told TNW.
AI isn't the only field with an impressive pool of talent. Despite a series of brutal layoffs earlier this year, there has been net growth in the number of European tech workers, meaning the rate of job creation is more than just... Layoff compensation.
It is also continuing its impressive recent wave of expansion. In the past five years, Europe's IT workforce has grown from 750,000 employees to more than 2.3 million employees today. Perhaps one reason for this rise comes from the other side of the Atlantic, according to data Atomico, Europe is now a net beneficiary of technology talent from the United States.
Tech talent has led to explosive growth in new startups. This year, Europe produced an estimated 14,000 new founders - 1,000 more than the United States.