According to the freshest report more than 40% of European companies claiming themselves start-ups of AI don’t even use Artificial Intelligence in their products. London based scheme firm capital MMC Ventures published research that they have found nothing about artificial intelligence involved as an essential part of the European products of forty percent companies claiming AI start-ups. The authors of the report reviewed the activities, functions individually and start-ups across 13 European countries. In the study, there is not any name of the start-ups.
The outcomes also raise questions regarding how Artificial Intelligence become a marketing source for start-ups trying to attract the customers to buy their products and placed their companies at a lead of technology innovation. David Kelnar, head of research at MMC said that there is a bulk of hype here and there but it is one of the methods that they hope to add value as an investor is to help cut over that and prominent the technology.
Kelnar further stated that Europe is approaching an era of Artificial Intelligence entrepreneurship along one out of every twelve new start-ups placing Artificial Intelligence at the fundamental of their operations. The survey when done in 2013 found that just one in every fifty new start-ups involved AI.
Reasons Behind Start-up Companies Calling them AI
There may be many reasons for start-ups companies to call them AI, but from them, one goal is to appeal more funding. The survey of MMC specified that since 2015 the Artificial Intelligence firms have raised among more capital of fifteen and fifty percent in their funding rounds than old-style software companies.
A associate at intellectual property law firm Gill Jennings & Every, Peter Finnie said that there had been an addition in Artificial Intelligence patent filings as firms try to get most investment for their business. Moreover, he also said that from the perspective of intellectual property, using AI in this way have little but no significance. And the bubble of AI sector might burst due to this.
Regulators and companies highlighted one problem that there might the reason for an unidentified definition of AI. The meaning of AI according to the EU’s executive arm and the European Commission is that it is a technology that permits systems to examine their environment and take itself decision following some involvement of autonomy. Currently, the commission is operational on a set of guidelines around Artificial Intelligence to assist in establishing perfect definitions and making sure its use for noble purposes.
Users Have More Trust on Europe Made AI Products
The Commission’s Director of AI of Europe, Lucilla Sioli said that he thinks that the users using AI products have more trust in Europe made AI products than elsewhere and this user’s confidence will help us to more competitive. It is essential that they get right this approach. And according to the report of MMC, the United Kingdom is home within Europe for several AI start-ups. A British research firm attained by Google in 2005, DeepMind start-ups raised the profile of the United Kingdom.
Among five new companies focusing on wellbeing and health with Artificial Intelligence start-ups in Europe, the most popular sector is health care. Entertainment, retail, media, and finance were also common industries for Artificial Intelligence according to the report of MMC.