Artificial intelligence (AI) is a multidisciplinary field of science whose goal is to create intelligent machines. We believe that AI will be a force multiplier on technological progress in our increasingly digital, data-driven world. This is because everything around us today, ranging from culture to consumer products, is a product of intelligence. In this report, we set out to capture a snapshot of the exponential progress in AI with a focus on developments in the past 12 months. Consider this report as a compilation of the most interesting things we’ve seen that seeks to trigger informed conversation about the state of AI and its implication for the future. We consider the following key dimensions in our report: Research: Technology breakthroughs and their capabilities. Talent: Supply, demand and concentration of talent working in the field. Industry: Large platforms, financings and areas of application for AI-driven innovation today and tomorrow. Politics: Public opinion of AI, economic implications and the emerging geopolitics of AI. Collaboratively produced in East London, UK by: - Nathan Benaich, Founder of Air Street Capital (www.airstreet.com) and RAAIS (www.raais.co). - Ian Hogarth, Visiting Professor at UCL's IIPP (https://www.twitter.com/IIPP_UCL) and angel investor.