The report says 40percent of the 2830 AI start-ups in Europe are fake AI companies.

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 The report says 40percent of the 2830 AI start-ups in Europe are fake AI companies.


London-based MMC Venture Capital has recently released a report showing that only 1,580 of the 2,830 start-ups classified as AI companies in Europe meet the description. This label refers to the ability of a computer system to perform tasks that normally require human intelligence.

We look at the materials, products, websites and product documents of every company, said David Kelnar, research director at MCC, which manages 300 million euros. In 40% of cases, we cant find evidence of AI technology. In this case, he adds, what was supposed to be an AI company might have been an illusion.

Startups with AI labels attract 15-50% more money than other technology companies.

Kelnar adds that these start-ups dont necessarily advertise themselves as AI companies. They prefer to be categorized in this way (rather than correcting them) by third-party analysis sites. Kelnar declined to disclose the names of the analytics sites and start-ups; a spokesman for MMC said that doing so might send the wrong message to potential investors in the venture capital company. Companies investing in start-ups often use several well-known analysis sites to track potential investments, such as Pitchbook, Crunchbase and CBI Insights.

I think in most cases [startups] are aware of how they are categorized, adds Kenner. But there is little incentive to actively correct classifications, because it often means less potential investment in the future, and it can make you an artificial intelligence company.

Kelnar adds that startups in the field of artificial intelligence attract 15-50% more money in the financing process than other technology start-ups. It makes sense for AI start-ups to raise more money than usual because they may have to pay higher salaries for professional engineers. But these data also reflect the dynamics of supply and demand, Keyner said.

The MMC study lasted several months and was sponsored by Barclays Bank. Research has found that the use of artificial intelligence software, such as text and visual recognition or prediction analysis, is also growing in start-ups and large companies. According to the survey, the number of start-ups using AI as part of their products or services has risen from about one-fifth six years ago to one-twelfth today. Meanwhile, about 12% of big companies use AI applications in their businesses, up from 4% last year.

According to the report, the most popular uses of AI are chat robots, followed by process automation tools (which replace simple management tasks for dealing with insurance claims), and fraud detection. When enterprises apply AI-based software, they usually use it in visual recognition, technical speech synthesis or prediction and decision-making. Despite the attractive prospects for business and the popularity of AI among investors, many people are still uncertain about the working principles or definitions of AI, which may be an advantage for some start-ups. (Source: Forbes Compiler: Netease Intelligent Participation: Perseverance) Source of this article: Netease Intelligent Responsible Editor: Wang Chao_NT4133

According to the report, the most popular uses of AI are chat robots, followed by process automation tools (which replace simple management tasks for dealing with insurance claims), and fraud detection. When enterprises apply AI-based software, they usually use it in visual recognition, technical speech synthesis or prediction and decision-making. Despite the attractive prospects for business and the popularity of AI among investors, many people are still uncertain about the working principles or definitions of AI, which may be an advantage for some start-ups.

(Source: Forbes Compiler: Netease Intelligent Participation: Perseverance)