Attention Artificial Intelligence Founders: Does your Business Need Machine Learning?
As most investors will tell you, Artificial intelligence (AI) and machine learning (ML) have become buzzwords. Entrepreneurs are sprinkling them in every other pitch. Though the advancements in AI and deep learning have enabled some companies to do some real innovative work, the overuse of these words has forced others to use the terms with no objectives. I mean, can investors get to the heart of what the company is doing, why it is different, and what is defensible about their approach?
Machine learning is a more than a technology, it is an approach
Researchers often ask you as a founder why you use AI to solve the problem you focus on and why use that particular approach. Though challenging, these questions are useful to you, and if you can give a clear and compelling answer to these questions, it is an indication that you have assessed your options well. The questions also assist you to evaluate the value AI is adding to your company and if the cost incurred to have the technology was necessary. You can also confirm that you are not over complicating the problem rather you have identified an opportunity that stirs development of new processes or at least improves the current ones.
Machine learning is a technology that will transform industries
Investors and business owners understand that machine learning and artificial intelligence will transform industries, and for that reason, they have flooded companies using these technologies with investment dollars. According to Crunchbase data, corporate, venture and seed investors invested $3.6 billion (about £2.7 billion) into companies employing artificial intelligence and machine learning technologies this year. Surprisingly, about 40 percent of the amount went to two companies namely Argo AI and SenseTime. In February, Ford invested £770 million in Argo AI, which is an AI technology developer for self driving vehicles. SenseTime a developer of AI-powered deep learning technology raised £315 million in July.
It is important for founders to note that machine learning by itself or in itself is not a solution; it is only an enabler in optimizing the desired outcome. Some of the ways that ML and AI are transforming industries is by refining user experiences, reducing cost and restructuring decision-making processes.
Machine learning is a technology that solves real problems
When presenting a pitch as a company founder, you should concentrate more on the problem your business solves rather than the technology it is using. You should also explain how you are solving the problem as well as the technical difference of your approach from that of your competitors. Just like Venmo does not talk about it being a mobile company but rather a mobile enabled social payments application, that concept applies here as well.
In this way, the investors understand better the unique and different thing about your company since they can see the value you are providing as well as who will use your product. The firm should ascertain that they produce products due to the technology and are not a technology company.
We’re a big fan of Artificial intelligence (AI) and machine learning (ML) and are fortunate to be working with some great clients, you can check out the top trends in AI here, and if you wish to contact us please do, anytime.
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