April 30, 2019
The London-based venture capital firm MMC studied about 2830 artificial intelligence startups in 13 European countries, reviewing their ‘activities, focus, and funding’. Its report () states that 40% of companies that were classified as AI companies didn’t actually use AI in a way that was ‘material’ to the business. Forbes has noted that AI classification is sometimes based on third-party data, so misclassification is not t...he responsibility of the startups themselves. Forbes concluded that startups weren’t actively misleading their customers but MMC’s report showed that there is a clear incentive for companies to keep quiet if they are misclassified. MMC found that startups that claim to work with AI attracted between 15 and 50% more funding. Some of the implementations of AI were banal. The most popular implementations included chatbots (26%) and fraud detection (21%). MMC also concluded that it was tricky to judge exactly how much AI technologies benefited the customer. AI was generally an auxiliary service rather than a central selling point.