Nearly Half of So-Called ?AI Firms? in Europe Never Use Artificial Intelligence, VC Firm Says

This creates a very clear incentive for the companies to convince investors that their business is, in some way, connected to the emerging technology.AI firms receive between 15% to 50% more funding than other firms | Source: MMC SurveyAI firms often have higher overhead due to the cost of highly-specialized AI engineers, although it’s undeniable that there is also an allure around what is perceived as a new and exciting field. This, too, is behind the increase in available funding.MMC head of research David Kelnar stated that while in some cases, the AI classification may come from third-party websites, the firms are likely aware of the classification and actively choosing to do nothing about it.It’s also likely that many firms are taking active measures from the beginning to deceive investors in what could be perceived as a fraudulent manner.“I think in most cases [startups] will aware of how they’re being classified.”The study also found that many of the firms using AI in connection to their business are often pursuing use cases with limited viability with 26 percent of companies developing chatbots and 21 percent pursuing fraud-detection solutions.While it could be that the companies are earnest in their efforts, the success and potential of these two use cases is notoriously difficult to measure.