The Infinite Possibilities of Artificial Intelligence 2.0

The venture capital community is seeing literally hundreds, if not thousands, of new companies focused on applying artificial intelligence to resolving business issues and improving consumer experience on and offline. This explosion of interest, on both sides of the Atlantic, is driven by the well-known trends of big data, faster processing speeds, more bandwidth and increasing broadband access. The market numbers are staggering: a financial services firm issued a 300-page report in 2015 explaining why the AI market is projected to grow to $153 billion by 2020: that's $83 billion for robotics and $70 billion for AI-based analytics. The joke in the VC industry is that any start-up that claims to use AI will expect at least a 20 percent valuation premium. There will indeed be great value created but also lots of wasted experiments.