In the upcoming age of AI, two very different classes of companies appear well-positioned to leverage AI's capabilities: startup ventures and multi-billion-dollar giant corporations. Promising AI startups are being launched at an increasing pace in areas like health care, finance, retail, media and cross-industry tech, to name a few. And alongside tech giants like Google or Microsoft, traditional large corporations are employing AI to digitalize their business model and processes. Examples of AI-driven automation and augmentation range from automated customer loan approval and smart infotainment systems at car manufacturer Daimler to predictive maintenance at oil and gas behemoth Shell and AI-assisted medical image reading at industrial manufacturer Siemens. Corporate AI innovation is fairly concentrated with the top-10 patenting firms in the world accounting for more than 15% of AI patents in the period 2011 to 2016.

Big tech companies are pouring tens of billions of dollars into research on artificial intelligence (AI). Can small startups hope to enter AI markets and compete effectively? A recent survey we did of commercial AI startups provides some intriguing insights into how they work, and how and where they compete with larger and more established firms. The picture that emerges is one of a robust, competitive market for startups, but also a market that is restricted in some important ways. Large incumbent tech firms have several advantages over startups: they can invest huge sums into R&D, they have access to large amounts of data, and they have complementary assets and established markets.

The endless parade of emerging technology is gaining the attention of large enterprises and startups alike. The Internet of Things, artificial intelligence, machine learning, natural language processing, robotic process automation, and cognitive computing – all of these digital innovations and more are generating a range of disruptive innovation that is bridging gaps of unfulfilled customer demand. Does it make sense to spend limited resources to take advantage of these same technologies? According to the IDC Analyst Connection, "Analytics for SMBs: Sharpen Operations, Capitalize on Business Opportunities," such investments can bring a level of automation, electronic monitoring, and sensor-enabled insight not seen anywhere outside of the SMB segment. While the largest firms are busy refining processes in response to market dynamics, SMBs are close enough to customers and the competitive environment to effectuate change with tremendous speed and agility.

The endless parade of emerging technology is gaining the attention of large enterprises and startups alike. The Internet of Things, artificial intelligence, machine learning, natural language processing, robotic process automation, and cognitive computing – all of these digital innovations and more are generating a range of disruptive innovation that is bridging gaps of unfulfilled customer demand. Does it make sense to spend limited resources to take advantage of these same technologies? According to the IDC Analyst Connection, "Analytics for SMBs: Sharpen Operations, Capitalize on Business Opportunities," such investments can bring a level of automation, electronic monitoring, and sensor-enabled insight not seen anywhere outside of the SMB segment. While the largest firms are busy refining processes in response to market dynamics, SMBs are close enough to customers and the competitive environment to effectuate change with tremendous speed and agility.

The endless parade of emerging technology is gaining the attention of large enterprises and digital startups alike. The Internet of Things, artificial intelligence, machine learning, natural language processing, robotic process automation, and cognitive computing – all of these digital innovations and more – are creating an environment of disruptive innovation that are bridging the gaps of unfulfilled customer demand. Does it even make sense to spend already limited resources to take advantage of these same technologies? According to the IDC Analyst Connection whitepaper "Analytics for SMBs: Sharpen Operations, Capitalize on Business Opportunities," sponsored by SAP, such investments can bring a level of automation, electronic monitoring, and sensor-enabled insight not seen anywhere outside of the SMB segment. Ray Boggs, vice president of small and medium business research at IDC, mentioned that the most successful small and midsize firms have the flexibility and adaptability to face competitive challenges.