AI Startups: Here's Your Guide to Get Beyond the Hype and Drive a Commercially Successful Business

 Time for lift off! DREAMSTIME

Time for lift off! DREAMSTIME

September 6, 2018 - Dharmesh Thakker, general partner at Battery Ventures, writes for Forbes: My LinkedIn and Twitter feeds are flooded with AI news these days, as are most popular news media outlets. And with good reason: McKinsey claimed in a report earlier this year that AI could create between $3.5 trillion and $5.8 trillion in value annually across 19 industries, ranging from healthcare to retail to agriculture and high-tech. AI hype seems to be at an all-time high - even my teenage son talks about taking AI programming language Python rather than Spanish!

Data may indeed be the new oil, and the AI engine can drive tremendous value for companies from all the data, images and videos being generated today. But if AI is that important, why are we not yet seeing next-gen AI companies lift off and create commercially successful businesses the same way cloud computing and cybersecurity companies have?

At Battery Ventures, we have spent the last several years examining the end-to-end AI technology stack, from big-data building blocks to AI modeling tools and, now, vertically oriented AI companies. Based on our body of work, we’ve seen five winning strategies—not all of them intuitive--that AI companies can use with customers to drive commercially successful businesses and create lasting value. More...