Artificial Intelligence is a much-talked topic in today’s world. Every company or startup is either working on it or talking about its benefits. Despite this fact, there are some AI Startups in Europe which are just creating hype about Artificial Intelligence but are not using it. They are just mongering new technological advancements despite no research evidence in the past over the AI.
In a new survey conducted with over 2830 AI startups in 13 European sub-continent by VC investor MMC ventures, it was revealed that in around 40% of cases, they could not find any mention of AI. MMC head of research, David Kelnar, says that “companies that people assume and think are AI companies are probably not.” Nearly half of the companies in Europe that call themselves AI start-ups don’t actually use artificial intelligence, a new report found. The report data is aggregated by focusing on the “activities, focus, and funding” of each firm.
The new findings are raising questions as like what these companies were doing to manipulate the offerings. Do customers really know into what they are investing? The hype of AI has reached such a height that with fake AI talks, companies are luring huge investments. These companies do not grow within a day, and there are many reasons through which these firms blossom. Even analytics firms are also responsible behind classifying these companies, as noted by Forbes.
“There’s a huge amount of hype around, but one of the ways that we hope to add value as an investor … is to help cut through that and highlight the technology,” said David Kelnar,
The potential of AI is driving more investments to these companies. Primarily, some of them are using AI as a weapon to attract more funding. The report also finds that the “Artifical Intelligence” tag on the company has increased the investments by up to 15-20%. The firms are generating huge investments by just claiming that they are working on AI. In other words, the companies are encashing in on the hype created in the past few years. Further, the valuations of AI firms have also jumped in the past few years, overtaking software firms.
“From an intellectual property perspective, the use of AI in this way actually holds little to no value,” he said in an email to our source. “The AI sector is a bubble that might well burst because of this.”
Not just talking about fake AI claims, some companies are even manipulating consumer data stats to serve the company’s marketing departments.
As per the report, only one in four AI companies is working in an efficient manner to automate customer service. Further, nine out of 10 AI startups are just working on the B2B operations. There is a considerable demand for AI-based operations in the health & wellbeing, finance, retail, and media & entertainment sectors. The AI is booming in Europe and the subcontinent has already jumped into the “era of AI entrepreneurship.” In total, one out of twelve new start-ups is primarily using AI at its core.
- Read More: Smartphone Market expected to further decline in 2019; 5G adoption to touch 26% by 2023: IDC
UK has a massive bunch of AI startups, actually, double the amount in respect to any other country. Companies like Deepmind and others are the actual drivers behind AI growth in the UK.
