The level of investments in the Romanian start-ups developing AI Solutions is estimated to double in 2025, when it is estimated to reach 50 million Euro, according to a statement uttered recently representatives of management consulting company Horváth & Partners.
The level of investments in AI-based start-ups in the last quarter (Q4) of 2019 places Romania in the top ranking of Eastern European countries , behind Hungary, Russia and Poland, but ahead of the Czech Republic, Slovenia or Slovakia. In the last three months of last year, investments in AI start-ups in Romania amounted to around 20 million Euro.
“We are in an advanced stage of digital transformation and we are seeing an accelerated growth in the area of AI-based technology and robotic automation processes. Romania is gaining more and more speed. AI start-ups on the domestic market had a very good track record in 2019, especially in the latter part of the year. A Series-type of investments worth near 20 million Euro in start-ups such as TypingDNA and FintechOS, have accelerated the growth of this segment in Romania, which is also increasingly appreciated in the global rankings of the countries that have the opportunity to support and benefit from following the AI-based technological revolution. From our appreciation, the period of extraordinary effervescence on the digitization segment, which we are currently going through, will intensify in the next decade. GDP growth, generated by AI and Machine Learning in Europe, will amount to 1.5 – 2 trillion euros over the next 10 years, “explained Kurt Weber, General Manager of Horváth & Partners Romania.
According to Horváth & Partners estimates, in the last quarter of 2019, Romania has climbed seven positions in the top countries of the region with the largest investments in AI start-ups. This spectacular growth is due to the Serie A investments received by Typing DNA, a start-up of online security solutions based on behavioral biometrics founded in Oradea, and FintechOS, a Romanian start-up of automated financial technology.
According to Horváth & Partners analysis, the global investments of Private Equity and Venture Capital in AI start-ups have increased considerably since 2011. Between 2015 and 2019, the average growth of this type of investment, calculated at the level of the USA, China, The European Union, Israel, and other countries, was 47%.
The labor market will, in turn, be strongly influenced by robotization processes (RPA), AI and the entire development of the digitalization and e-learning segments. From estimates of Horváth & Partners, between 40% and 50% of the existing jobs could be replaced by automation solutions, until 2030. The functions where there is the highest probability of automation are in activities related to accounting, logistics, warehousing, marketing , cashier, office administrative jobs, typing, food industry (food preparation), operation of mobile plants, component assembly, mining and manufacturing.