Health care leads the way for top private AI firms

A new list of the top 100 private AI companies shows that health is driving investment in the industry.

Why it matters: COVID-19 has shown the power and potential of AI applications for health, and the growth of the field will continue long after the pandemic has finally ended.

What's happening: Wednesday morning, the business research firm CB Insights released its annual AI 100 ranking of the most promising private companies working in artificial intelligence.

• The list includes companies headquartered in 12 countries and nearly 20 different industries.
• The firms on the list have raised more than $11.7 billion in equity funding collectively since 2010, and 12 companies have a valuation over $1 billion.

What they're saying: "The list is a testament to not just the breadth of AI’s impact but also the depth of automation within industries," says Deepashri Varadharajan, lead analyst for emerging tech at CB Insights.

Details: AI companies focused on health care claimed the most spots on the list with eight, including some working on surgical technology, clinical trials and even dental insurance.

• Health care AI startups enjoyed record funding in the third quarter of 2020, with 122 deals adding up to more than $2 billion.
• "While health care has always been one of the top categories in the AI 100, the pandemic certainly accelerated AI's adoption in the space," says Varadharajan.

The bottom line: One of the biggest takeaways of the AI 100 ranking is the way artificial intelligence has moved from the digital realm into the physical world — and there's nothing more physical than our health.

Go deeper: Coronavirus accelerates AI in health care