85% of AI start-ups will fail within 3 years. - page 2.

wxa7115

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It is predicted that 85% of AI start-ups will fail within 3 years. While AI is a rapidly growing industry, it is also a highly competitive one, with many companies vying for a slice of the market. The failure rate is high due to various reasons such as lack of funding, poor management and inability to deliver a product that meets market needs. One of the biggest challenges for AI start ups is obtaining funding. Investor are often hesitant to invest in AI companies due to the high risk involved Even if a company does secure funding, it can be difficult to manage that money effectively. Poor management can lead to overspending and a failure to deliver on promised products or services.

This reminds me what we saw many years ago with search engines or with social media websites, in which everyone is striving to be at the very top because they know there is no comparison between being there and being the second place, as this is another business which is highly dependent on the data they can gather.

And the more users you get the better and the more data you receive, which can later be used to construct a better AI model, and eventually there will be no comparison between those models, so whoever can get at the top now it will become a monopoly.

Franctoshi

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Quote from: Wiwo on June 16, 2023, 06:10:32 PM

Quote from: mvdheuvel1983 on June 16, 2023, 05:42:22 PM

Snip~

On a personal note, I don't see any future in AI development especially when and where its usage is limited, and I don't equate any credence to AI project since I have the mindset of it result in being hot generated and doesn't pass through if put into real-time usage unless it results and data are subject to human contributions for accurate results.

But at this point, AI is trying to prove itself to be independently functional void of human interference and this assumption is what will lead to the failure of AI development in the shortest time because AI is gradually losing its popularity.

I agree with you, AI is dependent on the data that is supplied to them, despite the fact we are in the Era of the AI bubble, in the future, AI may have no ground when its limitations must have been seen by all, But what can keep it thriving is if some modifications or improvements are done to enhance its performance to have a better experience with utilizing them.

However, one thing I know is no matter the level of improvement or modification done to it, AI can never be human, and that will always remain its limitation.

Litzki1990

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There are many AI technologies around the world now that are mainly developed to improve technology and make human tasks easier. But while there are many such technologies, many AI technologies fail to keep pace with the modern world. Mainly due to not updating with time, not maintaining well and not updating advanced systems, these technologies are slowly losing popularity to people. As a result, people are withdrawing themselves from such AI technologies. As easy as it is to build an AI technology, it is difficult to control it well. Those who develop such technology must first think about how they will control this technology. Only if they find a way to control the technology well, they should bring such technology to the people.

Flexystar

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I don’t even know why they made it. We were so happy minding our own business and doing that 9-5 perfectly. Anyways, there is high chance that it will get less popular as we move forward in the future. Even best of the best admirer of technology think that AI are dangerous for the economy. In one of the interview from Elon Musk he himself agreed that AI is disastrous as compared to nuke bombs. We don’t have to be sceptical about this thought because it can always happen. AI is slowly getting injected in every field which means it’s dangerous. So yeah why not, I would like to think that way as well.

el kaka22

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Why do people even start these? I mean it doesn't make sense to me at all because we are talking about something getting saturated so much that everyone is doing it. Obviously a lot of people will fail, because at the end of the day way too many people are doing it, so how could all of them succeed?

This is a high end technological idea and people who are good at what they are doing should be doing it, people who "think" they can do it will end up failing. I personally hope that the best thing about this would be making a profit based on peoples talents and we do not have enough talented people in the AI world as the number of companies suggests, so that means it is going to be a big failure when the time comes, it is too obvious.

wxa7115

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Quote from: Vishnu.Reang on June 28, 2023, 03:23:29 AM

I don't have that much idea what is the main purpose of them but in current situation people is really afraid of loosing their job in market. If they don't have good use of their projects then most probably they will loose their trust and importance. One of the biggest mistake that AI startups make is focusing too much on technology without realizing that business is more important then technology. There is one more problem in AI is insufficient or low-quality data. AI systems function by being trained on set of data relevant to topic they are tackling.

I think for the most part the lack of data problem is basically solved at this point, the algorithms behind the different AIs have existed for a long time, but they were ineffective due to the lack of data and we were not aware of all the applications in which we could use them.

But now people are generating data almost every single second of the day, then this data can be compiled, processed, tagged and finally used to train an AI to do almost anything we can imagine.

ChiBitCTy

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Oh I would probably say it's going to be even higher than that. It's very similar to cryptocurrency in my mind. I've always stated from early on that 99% of cryptocurrency coins/projects would fail, and that's exactly the truth and what's come to be. I mean I guess some coins can "hang around" until the end of time, but that doesn't mean they haven't failed.

Also, lets get something straight, ChatGPT and those of it's ilk are NOT legit AI. AGI/Artificial General Intelligence is LEGIT AI. True AI will completely change our world. This pseudo AI is changing our world, but nothing like AGI will. Truly self learning, no restrictions built in by the programmers...that's legit AI.

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Quote from: YUriy1991 on June 28, 2023, 01:54:43 AM

Quote from: AmoreJaz on June 27, 2023, 05:12:33 PM

very few devs are serious in attaining success of their product but they are more on how to earn money fast. they usually don't care if their product or service will be a hit or not, useful or not, in the market. so long their pockets are full.

Agreed in this context, Besides that the market has its own way or mechanism of filtering out unsustainable or ineffective projects from time to time. Success is not only determined by the early steps as an adopter, but also by the company's ability to continue to grow while maintaining customer relevance and satisfaction. In the end it is the market and customers that determine the success or failure of the startup.

Indirectly, this means that it really depends on how the company operates and does their work plan and indeed it is true that I agree with this because seeing the conditions, of course, even though there is hype about AI at this time, the sustainability of the company, of course, depends on management and how it works especially in attracting enthusiasts here.
We won't be able to do that without any effort and when the hype is really busy now, how can we improve so that the quality that is run is better than other competitors and is in demand by consumers.
This is indeed quite difficult but if they already know what they are going to do with clear planning then indeed this will not be as complicated as it should be.

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There are similarities between the AI startup ecosystem and the dot-com boom, but there are also important differences to keep in mind. Contrasting the failure of many dot-com businesses, AI has spread throughout many industries, bringing real benefits to many people.

While 85% may seem high, it's actually rather close to the usual start-up failure rate of roughly 90%. The start-up environment is tough for any business, not just those in the AI sector.

AI has the ability to disrupt sectors, and rising investments predict that many AI startups will be successful. They could have far-reaching effects in areas beyond technology, including medicine, education, and transportation. We live in truly exciting times.

icalical

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Quote from: Vaskiy on June 26, 2023, 07:56:50 PM

Quote from: icalical on June 25, 2023, 08:23:46 PM

This is kinda true, tho I am not sure about the number of 85% since I never do any research on it, but it's I think it's about the right number. And it's not only AI, it happened in almost all break-through project. Like DeFi, in the previous trend or even more common industry like Online Transportation like Uber and Grab, there used to be a lot like this project but then only few is thrive and successful. User will slowly move to one project that are truly know what the users need, some industry doesn't even take up to 3 years to eliminate some projects.

It is the reality, just because AI is the ongoing trend companies focus on it. They never think about the real time usage as well as the affordability. Most of the projects initially focus the premium people which means the company is able to generate revenue reaching small number of people whereas it requires large marketing to make it generate revenue reaching the bottom people. When the real-time usage is connected with the common mans involvement the project turns successful.

Yeah same old same old, most of project just looking to make quick money from the investor, they rarely think about the actual sustainability and scalability, just promising the investors that they might get a profit overnight.

Quote from: WatChe on June 26, 2023, 11:50:05 PM

Quote from: icalical on June 25, 2023, 08:23:46 PM

This is kinda true, tho I am not sure about the number of 85% since I never do any research on it, but it's I think it's about the right number. And it's not only AI, it happened in almost all break-through project. Like DeFi, in the previous trend or even more common industry like Online Transportation like Uber and Grab, there used to be a lot like this project but then only few is thrive and successful. User will slowly move to one project that are truly know what the users need, some industry doesn't even take up to 3 years to eliminate some projects.

Remember 2007? The year of ICOs. There were countless number of ICOs launched in 2007 and today only handful are known while rest either collapsed or abandoned by the owners. Today its summer of AI and everyone jumping into this sector for making a fortune. Only project that have right vision and team that has necessary skills along with motivation will survive rest all will be history in a matter of time. Its natural thing that whenever something new pops up, people jump into it for making money.

Yeah I remember than day, a dozens of new ICO project everyday, from very common idea like Real-estate to some weird and wild project like blockchain dating apps and even porn. After ICO then DeFI, move to NFT, move to Web3 and then AI, everyone just jump into the bandwagon, and most of them have no idea what they are getting into.

Vishnu.Reang

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I don't have that much idea what is the main purpose of them but in current situation people is really afraid of loosing their job in market. If they don't have good use of their projects then most probably they will loose their trust and importance. One of the biggest mistake that AI startups make is focusing too much on technology without realizing that business is more important then technology. There is one more problem in AI is insufficient or low-quality data. AI systems function by being trained on set of data relevant to topic they are tackling.

YUriy1991

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Quote from: AmoreJaz on June 27, 2023, 05:12:33 PM

very few devs are serious in attaining success of their product but they are more on how to earn money fast. they usually don't care if their product or service will be a hit or not, useful or not, in the market. so long their pockets are full.

Agreed in this context, Besides that the market has its own way or mechanism of filtering out unsustainable or ineffective projects from time to time. Success is not only determined by the early steps as an adopter, but also by the company's ability to continue to grow while maintaining customer relevance and satisfaction. In the end it is the market and customers that determine the success or failure of the startup.

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Quote from: Kakmakr on June 27, 2023, 01:59:20 AM

I definitely agree with you on this....

A lot of these startups are diving into the deep end and just riding the hype wave to be hip and to be first to market. It reminds me of the time when "Blockchain" was the buzz word...every startup wanted to have the word "Blockchain" in their project, but most of them failed.

Yes, it is good to be first to market... but it is hard work to sell the "new" concept to customers in the early days. Do not go "all-in" to a new technology, if you are not well funded by other mature operations. Roll Eyes

and not only 85% will fail but more than 95% of this type of project. just any other hype that we have seen in this market. we all know that most of them are just riding the hype, having AI connected to their name.
very few devs are serious in attaining success of their product but they are more on how to earn money fast. they usually don't care if their product or service will be a hit or not, useful or not, in the market. so long their pockets are full.

Kakmakr

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I definitely agree with you on this....

A lot of these startups are diving into the deep end and just riding the hype wave to be hip and to be first to market. It reminds me of the time when "Blockchain" was the buzz word...every startup wanted to have the word "Blockchain" in their project, but most of them failed.

Yes, it is good to be first to market... but it is hard work to sell the "new" concept to customers in the early days. Do not go "all-in" to a new technology, if you are not well funded by other mature operations. Roll Eyes

YUriy1991

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Quote from: adzino on June 24, 2023, 12:35:30 PM

Yeah, it's likely we might see a huge percentage of AI startups failing within the first few years. Many are riding on the hype wave started by OpenAI, pitching crazy innovative ideas and concepts to attract investment. Investors are game too, hoping for a big payout if just at least one of the ventures ends up being successful. But every hype eventually comes to an end. Once the AI hype cools down, many of these startups may find themselves struggling. Some might survive. At least those that has some real use case. But yeah, it's kinda like the dot com bubble all over again like you said.

I do not claim what was said above that it is completely true. But look at where the direction of AI is being created in detail and the products that have been developed and created by AI. indeed, AI provides all its conveniences and is easy for users to use, for example creating an article, creative content whose speed is faster than making a delicious cup of coffee, but that's just the visuals, there's something bigger than that. My current view.

WatChe

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Quote from: icalical on June 25, 2023, 08:23:46 PM

This is kinda true, tho I am not sure about the number of 85% since I never do any research on it, but it's I think it's about the right number. And it's not only AI, it happened in almost all break-through project. Like DeFi, in the previous trend or even more common industry like Online Transportation like Uber and Grab, there used to be a lot like this project but then only few is thrive and successful. User will slowly move to one project that are truly know what the users need, some industry doesn't even take up to 3 years to eliminate some projects.

Remember 2007? The year of ICOs. There were countless number of ICOs launched in 2007 and today only handful are known while rest either collapsed or abandoned by the owners. Today its summer of AI and everyone jumping into this sector for making a fortune. Only project that have right vision and team that has necessary skills along with motivation will survive rest all will be history in a matter of time. Its natural thing that whenever something new pops up, people jump into it for making money.

Vaskiy

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Quote from: icalical on June 25, 2023, 08:23:46 PM

This is kinda true, tho I am not sure about the number of 85% since I never do any research on it, but it's I think it's about the right number. And it's not only AI, it happened in almost all break-through project. Like DeFi, in the previous trend or even more common industry like Online Transportation like Uber and Grab, there used to be a lot like this project but then only few is thrive and successful. User will slowly move to one project that are truly know what the users need, some industry doesn't even take up to 3 years to eliminate some projects.

It is the reality, just because AI is the ongoing trend companies focus on it. They never think about the real time usage as well as the affordability. Most of the projects initially focus the premium people which means the company is able to generate revenue reaching small number of people whereas it requires large marketing to make it generate revenue reaching the bottom people. When the real-time usage is connected with the common mans involvement the project turns successful.

nimogsm

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And now there is a trend and there will be many projects and various startups that will use this tool, and this statistic in 85% is not only for this event, it fits all trends. Especially if we are talking about crypto, then for myself, I have not yet identified a project that would be interesting to me related to AI and crypto.

icalical

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This is kinda true, tho I am not sure about the number of 85% since I never do any research on it, but I think it's about the right number. And it's not only AI, it happened in almost all break-through project. Like DeFi, in the previous trend or even more common industry like Online Transportation like Uber and Grab, there used to be a lot like this project but then only few is thrive and successful. User will slowly move to one project that are truly know what the users need, some industry doesn't even take up to 3 years to eliminate some projects.

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Topic: 85% of AI start-ups will fail within 3 years. - page 2. (Read 669 times)