a majority of startups are employing the AI tactics to establish their daily work routines.
Tech startups are all the rage today; there is no denying the fact that there’s a lot riding on technology. When one talks about technological advancement, it is hard to overlook the role of artificial intelligence (AI) and its impact on the future of start-ups. Considered to be the “blue eyed boy” of the tech investment fraternity, a majority of startups are employing the AI tactics to establish their daily work routines.
Ever since 2016, AI startups have been in the spotlight, especially when it comes to investment and strategy. Over 550 startups have managed to secure funding for their AI based operations, dating back to 2012.
Together, the investments acquired is roughly $5 billion, which is still growing as time progresses. In 2017 alone, various startups have raised close to $9.5 billion. Considering that the year is still far from over, there is no surprise that Frost and Sullivan have termed Artificial Intelligence as the hottest investment trend of 2017.
What is artificial intelligence?
At the primary level, AI makes use of computer algorithms to replicate the inherent human ability to learn, reason and further make sound decisions. AI comprises of machines learning and deep learning networks primarily. Both methods are used to make predictions from large amounts of data. In an ideal situation, the human mind is unable to process such humongous amounts of data, which makes machine learning all the more necessary in the long run. Companies ranging from banks and financial institutions to healthcare and energy; everyone is making use of AI extensively.
Startups raising funds for artificial intelligence
In August, Software startup Databricks raised $140 million in a drive led by Andreessen Horowitz. With the money raised, they intend to tackle the current lack of data scientists in the analytics field. Similarly, Tailor Brands has hit it off in the startup arena by raising $4 million. This startup helps its customers create, design and edit their logos, without too many human interventions. Customers can create and edit their logos, marketing documents and publicity layouts without having to rush from pillar to post.
Another startup worth mentioning is Veritone, Inc, based out of California. Their brainchild is Veritone Platform, which is an open developer ecosystem focused on combining the power of third-party cognitive engines to unlock linear files.
There is a lot of hype around the concept of AI. Nearly 140 private companies have been actively involved in advancing AI since 2011. On the other hand, close to 40 acquisitions happened in 2016. Technology giants like IBM (NYSE:IBM), Google (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and so on are spearheading this trail as the markets begin to fill up with various technological advancements within the AI categories.
As more and more startups get their cues from these established firms, there is a well-groomed growth chart marking the future of this remarkable technology.
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Securities Disclosure: I, Prashant Sharma, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in contributed article. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.