Nearly Half Of All 'AI Startups' Are Cashing In On Hype

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Some 40% of firms across Europe classified as being "AI start-ups" showed no evidence that they used AI, according to new research from venture firm MMC. It can seem hardly a day goes by that a new technology startup hasn't raised investor cash on the hope that it uses artificial intelligence, or AI, as a key part of its business. Now however, a new report makes the surprising claim that 40% of European firms who are classified as an "AI startup" don't exploit the field of study in any material way for their business. Out of 2,830 startups in Europe who were classified as being AI companies, only 1,580 accurately fit that description according to the eye-opening stat on page 99 of a new report from MMC, a London-based venture capital firm. The label, which refers to computer systems that can perform tasks normally requiring human intelligence, was simply wrong.


Nearly Half Of All 'AI Startups' Are Cashing In On Hype

#artificialintelligence

Some 40% of firms across Europe classified as being "AI startups" showed no evidence that they used AI, according to new research from venture firm MMC. It can seem that hardly a day goes by that a new technology startup hasn't raised investor cash on the hope that it uses artificial intelligence, or AI, as a key part of its business. Now however, a new report makes the surprising claim that 40% of European firms that are classified as an "AI startup" don't exploit the field of study in any material way for their business. Out of 2,830 startups in Europe that were classified as being AI companies, only 1,580 accurately fit that description, according to the eye-opening stat on page 99 of a new report from MMC, a London-based venture capital firm. In many cases the label, which refers to computer systems that can perform tasks normally requiring human intelligence, was simply wrong.


Forty percent of "AI startups" in Europe don't actually use AI, claims report

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Artificial intelligence is one of the most misused terms in tech today, and a new study apparently confirms how hyped the technology has become. According to the survey from London venture capital firm MMC, 40 percent of European startups that are classified as AI companies don't actually use artificial intelligence in a way that is "material" to their businesses. MMC studied some 2,830 AI startups in 13 EU countries to come to its conclusion, reviewing the "activities, focus, and funding" of each firm. "In 40 percent of cases we could find no mention of evidence of AI," MMC head of research David Kelnar, who compiled the report, told Forbes. Kelnar says that this means "companies that people assume and think are AI companies are probably not."


Europe's AI start-ups often do not use AI, study finds

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Two-fifths of Europe's artificial intelligence start-ups do not use any AI programs in their products, according to a report that highlights the hype around the technology. The research by London-based investment firm MMC Ventures could not find any evidence, based on public information and interviews with executives, of artificial intelligence applications at 40 per cent of 2,830 AI start-ups in Europe. Nevertheless, the companies are often described as AI-focused, said David Kelnar, MMC's head of research, who added that many start-ups had plans to develop machine-learning programs, an application of AI that sees computers automatically learn and improve from experience, in the future. For example, Skyscape, a London-based start-up that analyses rooftops to find disused space for drone landings, urban farms and other projects, does not currently use machine learning or artificial intelligence, but is classified as an AI start-up. "Our work today is increasing our data and knowledge to allow the implementation of AI," said Brandon Bell, chief executive and founder.


Many of Europe's artificial intelligence start-ups have no AI

#artificialintelligence

Two-fifths of Europe's artificial intelligence start-ups do not use any AI programmes in their products, according to a report that highlights the hype around the technology. The research by London-based investment firm MMC Ventures could not find any evidence, based on public information and interviews with executives, of artificial intelligence applications at 40 per cent of 2,830 AI start-ups in Europe. Nevertheless, the companies are often described as AI-focused, said David Kelnar, MMC's head of research, who added that many start-ups had plans to develop machine-learning programs, an application of AI that sees computers automatically learn and improve from experience, in the future. Skyscape, for example, a London-based start-up that analyses rooftops to find disused space for drone landings, urban farms and other projects, does not currently use machine learning or artificial intelligence, but is classified as an AI start-up. "Our work today is increasing our data and knowledge to allow the implementation of AI," said Brandon Bell, chief executive and founder.