There are hundreds of innovative AI start-ups that are popping every day and claiming stake. According to the Economics Times, the venture capital funding of AI companies scored 72% with hitting a record of $9.3 billion in 2017 and has raised to $18.5 billion in 2024.
One of the most recent AI fundraising deals in 2024 includes $15 million raised by Evisort, $18 million by Huckleberry, $20.6 million by Anyscale with simplifying the AI and machine learning applications. These companies are surely going to expand their AI impact by investing a large sum of money globally.
Moving on with today’s topic, ‘AI is the Gold Rush for a Startup.’ It’s a headline from most of the AI companies who are raising a considerable sum of capital to give resources to the veins of AI Gold. In recent years, AI has been in the limelight as it plays a vital role in many emerging products. Moreover, building an AI product is not a cup of tea for all. One needs to have the availability of tools, required infrastructure such as Google Cloud, TensorFlow, Amazon GPU, and many more, which help users to work on real problems.
For start-ups, AI is not that tough which cannot afford, so one can create new models using required data, infrastructure, and talent by starting fresh. If we talk about the latest AI startups then on average, $5 million valuations were carried out with a list of 2000 new AI startups. Various IDC projects were planned on the AI market, which has reached $47 billion by 2024, with 60% of enterprises adopting the AI technology.
Diving deep into the topic…
What AI exactly stands for and why AI is the Gold Rush for Start-ups?
AI is Artificial Intelligence is an intelligent system that helps us to carry out various tasks without being explicitly programmed. Today, Artificial Intelligence, Machine Learning, Deep Learning are few of the trending buzzwords swirling in the market. We can say that AI is everywhere from billion searches on Google to new Amazon Alexa. AI is used for doctors to diagnose diseases, for making the bank a better assessment for the customer, for farmers to predict crop yields and for manufacturers to improve quality control.
AI and Machine Learning have become pervasive for the society but talking about Gold Rush as our article topic flows, who will find Gold in AI, or is for start-up why AI is Gold Rush. Without stretching the topic, let’s make this thought simpler for you.
AI covers several technologies for start-ups which includes
- Machine Learning: We can call this a type of Artificial Intelligence that provides computers the ability to learn without even programming it.
- Speech Recognition: The machine can identify the words and phrases which are spoken in various languages and later can be converted to a machine-readable format.
- Natural Language Processing: It’s a kind of computational linguistics that is concerned with the interactions between humans and computers.
- Robotics: We can call robotics a branch of science and engineering that uses electrical engineering, mechanical engineering, and computer science.
- Computer Vision: Various methods can be used here from analyzing and understanding digital images, extracting with high-dimensional data from the real world to producing symbolic data in forms of decision.
Hope you find the above technologies interesting enough as a start-up point of view. Moreover, AI isn’t only limited to start-ups but has helped major companies to grow substantially. Joining an AI gold rush can be quite simpler as its AI for start-ups provides various industry solutions, technology giants such as Microsoft, Google, and Amazon lead the rest of the AI value chain with ease.
These above tech giants will help Startups to design, build, and distribute hardware chips which are optimized for AI processes such as Machine Learning. Any individual can use the above technologies to run millions of AI applications quickly, anywhere, and anytime. This battle isn’t stopping but heating its overall cloud market with an estimated amount of $400 billion in 2024.
What makes successful AI Start-ups?
Software companies using AI will be a true differentiator in the near future. As they would be focusing more on accelerating innovations for primary capabilities instead of building their own underlying infrastructure. Big technologies, companies will bring new opportunities to create AI tools, business solutions, and leveraging technology platforms. Even top, most companies will leverage modern AI tools rather than building them.
Few of the companies won’t create AI from scratch instead of tailor AI off-the-shelf, which means data can be used as glue and connector for intelligent processes. Data can be used to develop new methods that digitally enable and transform the organization while helping AI to resolve the queries. AI can be called as a Future of Mobile App Development as it can be called as the next primary investment option. Most of the companies still out there are spending a lot of their time, money, and efforts in building bespoke tools, machine-learning code, and customizing data frameworks. Instead of doing this, one needs to focus on driving sustainable differentiation and driving innovation.
Few of the successful AI stories cover Amazon, Uber, and Netflix. The name AI is the new Gold Rush depends on this prospect as from all minority players, only one can make money by finding the gold (which was created with AI and ML code, capability, and platform used).
There’s a myth spread that the current AI gold Rush will soon fail, is this true?
Well, AI is too big to fail!
There is continuously bombarded warning spread all over against possible danger of AI. But instead of focusing on crises, why not we list out the creation of Artificial Intelligence machines that have done a great job in various industries. At some point, it might be correct as if we rely on AI algorithms, then there might be chances of backfire, but who cares if we know how to crack those software bugs and resolve it.
We can take this as a challenge and overcome towards creating an artificial intelligence product that benefits mankind in various ways. Dangers can be great with time but not that great, which cannot be overcome with time.
All in on AI. Vimal Shah, the founder of Agile Infoways, loves to explore new places around the world. He is a tech enthusiast and dives into development to come out with flying colors of success. Founder| Transformer | Techie | Innovator