As the world's attention turns to Paris for the upcoming Artificial Intelligence Action Summit, a new report has shed light on France's burgeoning AI ecosystem. The French AI Report, compiled by Galion.exe, Revaia, and Chausson Partners, reveals a thriving industry with over 750 startups, creating 35,000 jobs and operating across various sectors that are transforming modern society.

The report's findings are particularly noteworthy, given the current dominance of the U.S. and China in the AI landscape. While OpenAI's massive funding rounds and DeepSeek's recent breakthroughs have garnered significant attention, Europe has been quietly experiencing its own AI boom. In 2024, AI companies accounted for around 20% of all venture capital funding in the region, totaling approximately $8 billion.

European countries that traditionally attract VC funding have emerged as the main AI investment hubs, with the U.K. leading the pack, followed by France and Germany. The Nordics have also punched above their weight in terms of AI investments. This trend is expected to continue, driven by the relatively young age of AI startups, with 70% of capital raised in 2024 going towards seed to Series B rounds.

Interestingly, as AI companies mature, they tend to attract international investors. U.S. VC firms account for around 50% of investments in AI companies at the Series C round and later. This highlights the increasingly global nature of AI innovation and investment.

France, in particular, has become a hotbed of AI activity, with Minister Delegate for Artificial Intelligence and Digital Technologies Clara Chappaz highlighting the country's 2,000 scientists focused on AI research and 600 doctorate students working on artificial intelligence. Many French engineers and researchers are also contributing to AI companies in the U.S.

The French AI Report delved deeper into the top 400 AI startups in France, identifying rising stars in the industry. While some companies, like Mistral AI and Poolside, are already well-known, the majority of AI startups are focused on specific verticals, such as health and climate. Owkin and its spin-off biotech company Bioptimus are leading the charge in health tech, while companies like Altrove are emerging in the new materials space.

The report's findings suggest that the AI boom is more distributed than expected, with various countries and companies contributing to the industry's growth. As the world's leaders gather in Paris for the Artificial Intelligence Action Summit, the focus will likely shift to safety and environmental impact, with significant investments and diplomatic agreements expected to be announced.

While not all AI startups will succeed in the long term, the current pace of growth and innovation in the industry is undeniable. As the AI revolution continues to unfold, it's clear that France will play a significant role in shaping its future.