London-based venture capital firm MMC Ventures found 40% of Europe’s 2,830 AI startups do not have artificial intelligence as an important part of their product.
Six years ago in 2013, just one in 50 new start-ups embraced AI. Today, it is 1 out of every 12 new startups. Europe is entering an “era of AI entrepreneurship.”David Kelnar, Head of Research at MMC
As the current era of technology and the Internet of Things will give way to AI, startups significantly benefit from an increased valuation should they position themselves as AI companies. MMC’s survey found the AI companies raised 15-50 per cent more capital in their funding rounds as compared to traditional software companies.
Clearly, investors are highly interested in AI, and startups can feel pressured into having something to do with AI just to get their attention. Sadly, because AI is not yet as commonly understood, and does not have regulated definitions or guidelines, startups can make AI a tiny speck of their operations and get away with making it a big deal.
What we need are better definitions, principles, guidelines and regulations. Governments are looking into it. China just released its code of AI ethics on the heels of the World Economic Forum’s AI principles.
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