With the news that Magic Pony has been acquired by Twitter, we are witnessing a crucial turning point - five of the world's biggest technology companies have now purchased UK-based Artificial Intelligence (AI) companies. It is no coincidence that at the same time (1972) we saw the birth of venture capital with both Kleiner Perkins and Sequoia Capital raising their first small venture funds – which had similar characteristics to today's emerging European VC funds: small funds, thematic focused and highly supportive of entrepreneurs. At the same time, much has been said about the flow of capital into European venture capital funds and skills these venture team now have. The Magic Pony acquisition is an important part of the story in building Europe's emerging technology industry.

This article analyzes an attempt to use computing technology, including AI, to improve the combat readiness of a U.S. Navy aircraft carrier. The method of introducing new technology, as well as the reaction of the organization to the use of the technology, is examined to discern the reasons for the rejection by the carrier's personnel of a technically sophisticated attempt to increase mission capability. This effort to make advanced computing technology, such as expert systems, an integral part of the organizational environment and, thereby, to significantly alter traditional decision-making methods failed for two reasons: (1) the innovation of having users, as opposed to the navy research and development bureaucracy, perform the development function was in conflict with navy operational requirements and routines and (2) the technology itself was either inappropriate or perceived by operational experts to be inappropriate for the tasks of the organization. Finally, this article suggests those obstacles that must be overcome to successfully introduce state-of-the-art computing technology into any organization.

This report is derived from the IJCAI panel titled U.S and Japanese Cooperation in AI and R&D Opportunities, held August 23, 1986 at the University of California at Los Angeles. This panel discussed the sensitive topic of alternatives to nationalistic competitive strategies that have contributed to an extreme trade deficit surpassing $40 billion in 1986. Each country has designated AI research as a key to unlock years of generations of technology and has directed billions of dollars to fund this development. The most recognized projects are the U.S. Microelectronics Technology Computer Consortium (MCC) and Japan's Fifth Generation Computer Project (ICOT).