Will We See A Consolidation Of AI Startups Eventually?

With the COVID-19 pandemic outbreak, businesses are at a halt, and that has created a significant impact on the artificial intelligence-based startups, who are continuously struggling to stay afloat amid this downturn. In fact, a recent report has confirmed that 90% of tech startups, including the ones working with artificial intelligence and machine learning, in the country, are facing a significant decline in revenues due to the impact of COVID-19 pandemic. And approximately 30-40% of those startups are in the process of closing down due to halted operations and having no financial back up to continue the business. This pandemic has injured the backbone of the economy, which, in turn, poses a lot of dilemmas for investors to finance businesses amid this crisis. Venture capitalists have already warned startups about the difficult times ahead.