MMC Ventures Survey: Almost Half Of The Artificial Intelligence Firms In Europe Never Actually Used AI
Almost Half Of The Artificial Intelligence Companies In Europe Never Actually Used AI
MMC Ventures has conducted a survey recently which has shown some really incredible findings. Why are they so incredible? Because the study has revealed that 40% of the “Artificial Intelligence (AI) companies” in Europe have never actually used AI at all.
If this sounds extremely fishy to you, that’s because it is. Despite benefiting from the hype associated with these terms, most of these companies have never actually made a real investment in either AI nor machine learning technology.
Just like the blockchain technology, there is a real hype around artificial intelligence. A lot of people understand it as something that has the potential to be revolutionary, however, they do not actually understand it very well, so the companies can make these claims without it becoming completely clear at how full of bullshit they are.
According to MMC Ventures, one company has even tried to defend itself affirming that its goal was to gather “data and knowledge” in order to implement AI for real. They have not really done anything with AI, but they might do. It’s just like when everybody was onboard the Initial Coin Offering (ICO) hype train. You buy the promises and you never actually get anything real delivered to you.
It is quite bizarre how common this practice actually is, but there is a reason for it to be so normal. Data show that companies receive 15% to 50% more investments than others when they claim that they work with AI. They do not even really need to do it, they just have to claim it.
Sure, hiring actually good AI engineers is expensive and this is why these companies get so much money, however, they are actually scamming the investors in this case as they are not really offering anything that is being promised.
David Kelnar, the head of research at MMC Ventures, has affirmed that another important point to focus on is that sometimes the classification of these companies may come from third-party sites. The companies should be probably aware that they are being classified this way, but they do nothing to disperse the illusion as it is a profitable one.
Some Companies Only Use The “Bare Minimum” AI
Another interesting finding from this groundbreaking study is that several companies which actually use AI (the other 60%) often use it for the “bare minimum” only. Sometimes, for instance, they only use AI in their chatbots (26% of the cases) or in fraud-detection solutions (21%).
Both of these solutions are not even considered to be actually very good. People often criticize AI fraud detection as not cost-effective and chatbots are generally deemed as annoying by many users.
This means that around half of the companies which claim to be using AI and are not fooling people are using for things which are not very well linked to their businesses. Only 30% of all the so-called AI firms are actually creating really useful AI (and probably even some of these companies are not even creating something good).
AI, Blockchains, Hype And Bubbles
The early 90s has seen its own “AI bubble”, which hyped the technology too much and ended up not being good enough. It seems like we are moving towards the same path once more. Not that the AI technology today is so bad but the fact that there are so many people lying in this field shows just how hyped the market may be at the moment.
Machine learning, which is different from AI, is also another hyped buzzword at the moment, which leaves us to an important point: do you remember any other overhyped trend which ended up in a crash recently? Yes, I’m talking about the blockchain hype train.
The blockchain may be an awesome technology with a lot of promise, just like AI and machine learning, in fact, but it is no panacea that fixes all the problems in the world. Unfortunately, people tend to believe in exaggerations too often and this eventually harms the industry as a whole.
Only when investors are finally able to see beyond the hype and actually make their research they will stop to invest in pointless scams and see what these industries have to offer, which is actually a lot. Let’s all hope that the AI technology does not fall in the same hole that the blockchain did last year.