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Topic: 85% of AI start-ups will fail within 3 years. - page 6. (Read 661 times)

hero member
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The article really has a point because it is still a business. If we look at it from a bigger perspective, those big companies will really try to acquire those start-ups right now and implement them on their own, which we mostly know will either fail as there is new management or it will just go away. AI really requires a huge budget in the long run, and if that start-up company does not have a huge budget over time, they will go bankrupt. Though AI itself will be in demand for sure in the future, big companies will really take part in it.
hero member
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Those who would be the first to leave the room were the group that had come just to have fun with the Ai machines. However Ai have their own future for the people who have an interest in their use although only a few will remain because they have been the pioneers of their kind. For example, ChatGPT is a sophisticated answering machine, midjourney is a translator of thoughts into images, etc.
hero member
Activity: 602
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Marketing is also playing a huge part nowadays. You can see how some meme coins explode without having any different use case, for example, I believe the same thing will happen in the AI market. I mean, a smart chatbox is not exactly new, just that they become popular recently due to marketing and trend. CMIIW.

Yes, marketing will only take them to the top and bring in investors and buyers, but that can't keep them there forever. As soon as the hype of those huge marketing influences dies down, you will see those projects drop drastically because they lack everything it takes to be in those positions. Let's take a good look at some NFT projects back then and where they are right now, as well as a few meme tokens like you have mentioned.
legendary
Activity: 2170
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I read the article and I can agree on some points. They mentioned two main reasons why start-ups will fail, either running out of cash or getting bought by big players. Keep in mind that they specifically talk about AI start-ups, not the AI industry itself. If they define it that way then yeah, most of the start-ups will fail.

If their use is out of line, then they will fail. The world is developing every now and then, and if you, as a project owner, are not upgrading your project to match the trends and things that the world actually needs, then the only thing you should expect is failure.
Marketing is also playing a huge part nowadays. You can see how some meme coins explode without having any different use case, for example, I believe the same thing will happen in the AI market. I mean, a smart chatbox is not exactly new, just that they become popular recently due to marketing and trend. CMIIW.
legendary
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What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

There's a big probability it just depends on who funded and develop these AIs' I don't think Microsoft after funding their AI for $10 billion will be out of business as they are one of the pioneers, we have an AI now, and because so many industries are being helped to cut their losses.

Based on the article the AI creator who are likely to go out of business are small starts that take the opportunity to come out with their own AI for profit, we expect the technology giant like Google and MSN to beat and swallow these small developers, so yes I agree with the article.

When there is a trend and there is an opportunity on that trend expect companies and developers to take a shot at it, but in the end, if the big companies concentrate on it, they will emerge as the winner, while small companies will have to step down and enjoy their profit.
hero member
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I have not used any of the mentioned AIs before; in fact, I don't actually know what the main purpose of any of them is. But AI or not, one thing is sure about projects: if they don't have a good use case, they will definitely fail. If their use is out of line, then they will fail. The world is developing every now and then, and if you, as a project owner, are not upgrading your project to match the trends and things that the world actually needs, then the only thing you should expect is failure.
hero member
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I do think that it will happen. Well, I have been looking at the other industries startup market and seen that many have closed down already and when the market is too saturated for these AI/tech startups, for sure that many of them will have to close down because of how crowded the market is. 3 year span of time I think is already enough and we'll see that many of these will either continue and try to survive or will flourish and then the others to decide to close down. One thing is for sure with technology, these that are currently seeing to be amazed with their development. If they don't do better in the upcoming years, they may be obsolete and a newer tech will come.
hero member
Activity: 1736
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This is an opinion piece. 85% of AI start-ups will fail within 3 years. Link to article. That's what they have said. But what do we think. We use the internet everyday and may even be using one or two AI tools to help us become organized, productive and efficient. Hundreds of AI start-ups are spring up everywhere everyday - while some are jumping in without due diligence some, some are doing it for the money while some others what to make an impact. The AI startups boom is compared to the dot-com bubble where a lot of them failed. Some AI start-ups are: Open AI, Frame AI, Jasper, Drafter AI, Smartly.ai.
What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?
I think there's basis as to why this is the case. For one, the AI industry is not only infantile to the point where not a single one of these companies have made a relatively perfect form of artificial intelligence, and I doubt this would happen within our lifetimes but this apparent immaturity of the industry makes all of these companies try out stuff that would linger to the public. Think of it as the smartphone era with all the wacky features that old phones used to have like projectors and even infrared cameras, but with AI and for the most niche use-case.

Besides that, AI uses so much computational power it's astonishingly stupid. Like the power it takes to just run ChatGPT takes its creators millions of dollars per week (correct me if I'm wrong) just to make sure everything is neat and working. And since startups solely rely on pooled funding and I guess crowdfunding as well, you better believe they couldn't and wouldn't be able to deliver what they promise, which obviously leads to their downfall.
hero member
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On a personal note,  I don't see any future in AI development most especially when and where it usage are limited,  and I don't equate any credence to AI project since I have the mindset of it result 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 fail of AI development in the shortest time,  because AI is gradually losing it popularity.
sr. member
Activity: 1022
Merit: 368
This is an opinion piece. 85% of AI start-ups will fail within 3 years. Link to article. That's what they have said. But what do we think. We use the internet everyday and may even be using one or two AI tools to help us become organized, productive and efficient. Hundreds of AI start-ups are spring up everywhere everyday - while some are jumping in without due diligence some, some are doing it for the money while some others what to make an impact. The AI startups boom is compared to the dot-com bubble where a lot of them failed. Some AI start-ups are: Open AI, Frame AI, Jasper, Drafter AI, Smartly.ai.
What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?
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