How AI is Changing the Face of the Startup Ecosystem?
| 5 minutes read
- Technology firm, TechRepublic, has said only 29% of the startups are regularly using Artificial Intelligence.
- Qualcomm Technologies Inc. a US-based software and wireless technology company, funds & invests up to USD 100 million in promising startups that are transforming AI, the Economic Times
- AI is creating the wave of the substantial value of the digital era, the global economic potential is changing with the age of digitalization.
Artificial Intelligence delivers an intelligent solution across various platforms including automotive, health care, and business analytics. AI offers an optimum solution to the existing problem and eases your task in terms of performance and accuracy. AI not only develops opportunities it also develops capabilities to enhance the performance of models who have delivered a significant change for the technology in start-ups across the globe.
AI unlocks the extra-ordinary opportunities of investment surrounding Artificial Intelligence. It has also emphasized the value that technology leaders believe AI can bring out to the world of technology. While the developments are observed primarily on the industries that are focused and based on digital transformation, the AI would be considered as a game-changer in developing digital transformation of industries.
This technology has shown the technological advancement that has triggered exponential investment avenues across start-ups and allied funding for research and development.
Cybersecurity start-ups are relying on the Machine Learning process which is helpful to detect malware and spyware. The technology safeguards the startups from external threats, which as a result it helps small businesses to run without interruption and provide significant growth.
Key illustrations of Start-ups in AI
Various start-ups have marked their presence in the international market with their technologies and growth. Also, various reputed multinational companies invest in small start-ups because start-ups are a platform where the companies can develop and test newer technologies that contribute lesser risk. Few of the start-ups’ name listed below who have adopted AI on a larger scale:
Argo AI, LLC
The company tackles one of the most challenging roles in robotics; it deploys and develops the latest applications in robotics and AI to manufacture efficient safe self-driving vehicles.
A UK based company, which supports and provides a platform for automated process operation that controls machine learning.
SoundHound provides an AI platform that unlocks business owners and developers to develop their products with the help of AI technology. It also maintains the control of their brand and users while innovating.
Geographical Scenario of AI Start-ups
Strong leadership is also required in the field of AI, who can lead the company with the quick adoption of technology and also accept the change. American tech start-ups are strongly active in Artificial Intelligence research and development fields. Furthermore, the market key players such as Google, Apple Inc., and Microsoft Corporation are involved in developing the start-ups- by using AI and Machine Learning technologies involved in small businesses.
The Artificial Intelligence Market in Europe is on the peak, many leaders of the start-up companies are using AI to maximize their returns. The European Commission has announced an initiative for investing in AI also including an investment worth $22.56 billion. The investment is prepared and made by the European Union and private members.
Future Growth Standpoint for AI Startups
AI and Machine Learning are flourishing the market across the globe; companies are adopting AI technology and facilitating the working environment as per requirement. The technology is anticipated to provide significant growth and innovation both for corporations and consumers.
With the merger over transformative technologies such as big data analytics and IoT, Artificial Intelligence has the potential to generate a new basis for economic growth. It is to be believed that Silicon Valley in the US is the global hub for Artificial Intelligence start-ups.
AI developments are nurtured by data availability; therefore data-driven sectors already have an advantage. Also, start-ups require an investment than their peers in a different field, due to high fixed cost. The high cost comes due to the result of data collection, human resources, and computing power.
Investors expect a rapid return on investment; corporations need a strong defender to justify portfolio diversification and venture strategies. The propagation of digital technologies, successive investment in the AI field, and the rise in demand for advanced solutions are predictable to drive the growth of AI in the next few years.
Why Apple Inc. is Investing in a Machine Learning Startup?
The US tech giant Apple has acquired the Machine Learning start-up Inductiv Inc., a report published from Bloomberg. Inductive has been developing the technology that uses AI to identify & correct errors in datasets. The report explains that the engineering team from the AI start-up company has joined Apple who can work on multiple projects which includes Siri, and data science. In addition to the information, the iPhone manufacturer responded to the report and said “buying smaller technology companies from time to time and we generally do not reveal our purposes and plans”.
After the research, we found that Apple has acquired Inductive to advance and modify the Siri functionalities. Siri is the personal voice assistance of the iPhone.
Role of Start-ups in Technological Evolution
Start-up provides commotion based on the constant search of opportunities. The technological future comes from large companies, but by and large, these companies still haven’t figured out how to create disruptive innovation. Start-ups are better than large companies when it comes to new disruptive innovation. The invention of new technology means fading the existing companies and replacing them with the latest and modern company as per requirement. It has been observed that large tech companies have developed a more synergistic relationship with the start-ups.
Tech giants companies like Amazon, Apple, Microsoft, and Samsung have shown a strong presence over the past 5-10 years in developing the platforms and infrastructure of the start-ups. The repetition and diversification are key elements in the start-up ecosystem. An AI start-up ecosystem is an economic process for a region and country. It is also crucial to see investing in a start-up ecosystem, is not just a generator of economic prosperity- but also a verge towards the social security of the future.
Start-ups are focusing on the procedure and conveyance of AI services. The small businesses are providing solutions for various end-use industries, by creating the new digital age of digitalization. The western countries especially are changing with the age of digitalization.