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Analysis: 40 percent of European “AI startups” do not use AI at all

Where AI says, is not everywhere in it all inclusive. This – not entirely unexpected – result comes from an analysis of the London-based venture capital firm MMC Ventures. Since quite a few entrepreneurs apparently want to ride the hype surrounding Artificial Intelligence, many claim that working with AI does not do that at all.

According to an analysis of 2,830 “AI startups” in 13 EU countries, MMC has come to the conclusion that around 40 percent of start-up companies listed as AI companies or referred to as directories have nothing to do with Artificial Intelligence , Or put the other way around: “In about 60 percent of the cases – 1,580 companies – there was evidence that AI is essential for the value proposition of the company,” says the report. The hype surrounding AI has reached a new level.

Also in Austria one can assume that there are such non-AI startups. MMC, which conducted the study in collaboration with Barclays, has looked at start-ups from Austria, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and the United Kingdom.

AI startups get easier investment

“In 40 percent of cases, we could not find any clues about AI,” said MMC research director David Kelnar to Forbes. This means that “companies that people assume are AI companies may not be” For startup founders, however, the titling “AI Startup” could pay off. For example, start-up companies in this category currently receive 15 to 50 percent more investment. Just inexperienced investors who are new to the scene could easily burn their fingers.

It is not always the fault of the founders that companies are sometimes listed as “AI startup” in databases

So it may be that companies are assigned to directories in the category without even claiming to have Artificial Intelligence. Often, the applications referred to as AI are a bit simpler knitted than complex artificial intelligence – such as chatbots or fraud detection systems. Meanwhile, AI-controlled smart toothbrushes are advertised on social media. Again, there is a risk that consumers fall for a buzzword.

Published inArtificial Intelligence (AI)

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