The latest increase in AI-related investments is still expected to be just the beginning of a longer-term trend.

As EY notes in its latest report on VC investments, most of the funds funneled into the field are currently focused on building the foundation for the technology, e.g. developing and training AI models.

Once this wave of investment ebbs, entrepreneurs will need to figure out ways to actually utilize the potential of AI, which will likely kick off a second wave of AI investments.