While hype around AI is at a peak, and some expectations may exceed results in the short term, we believe AI represents a paradigm shift in technology that warrants the attention it is receiving. In 2017 AI reached an inflection point, driven by milestones in investment, capability, entrepreneurship and adoption. The implications for consumers, companies and society will be profound. Below, we highlight three key takeaways from our extensive report, the State of AI 2017: Inflection Point: (1) An inflection point in adoption, as AI'crosses the chasm' to the early majority of buyers; (2) The profound implications of AI, including shifts in sector value chains, the creation of new business models, and benefits and risks to society; and (3) The dynamics of the UK's 400 AI startups -- including a shift to the era of AI applications. Developed in association with Numis, our report draws on new data and over 400 discussions with ecosystem participants to go beyond the hype and explain the reality of AI today, what is to come and how to take advantage.