Investors have been putting billions of dollars into AI startups every year for several years now. But they’re focusing on the wrong type of play.
The large number of AI startups they’ve been funding are building vertical solutions, often from scratch, putting themselves in competition with technology giants — a battle they will lose most of the time.
Meanwhile, there is an increasingly obvious misalignment between what corporate customers expect from AI and what’s currently available in the market
Therefore, both AI investors and founders would be better off focusing on the opportunities around AI implementation, an area where customers struggle most.
Investment in U.S. AI startups has grown from less than $1.2 billion in 2013 to over $9 billion in 2018.