The Venture Capital Report by PwC and CB Insights revealed that funding of AI start-ups and ventures rose 72% in 2018, hitting a record of $9.3 billion. Unicorn start-ups like Paytm, OYO, and Swiggy have been investing resources to gain AI capabilities and have invested in at least one AI company.
In the same year, Venture Capitals have funded AI start-ups in India with $478.38 million in 111 funding rounds. One of the reasons for this rapid growth of AI and Machine Learning technologies is the competitive edge one can get using those. It is especially the case when it comes to cost optimization and customer experience. In the e-commerce industry, understanding customer behavior and product requirements and providing the best offer at the right time can be the competitive differentiation of an organization.
AI – A Game Changer
In the early stages, AI worked as a rule-based system, which could deliver value limited by how well the rules were defined. And it required human expertise. However, in Machine Learning, once you train a model, it can learn further through interference and deep learning where the model is set to work on data in real-time.
The self-learning ability of Machine Learning models with minimum or no human involvement is the reason why this technology is gaining interest from innovators and entrepreneurs. Whether it’s watching series on Netflix or shopping through Flipkart, machine learning and deep learning have vastly touched customers’ experiences. The vast amount of content curation and product recommendations is one of the commercially well-known user cases that attracted various tech giants and conventional start-ups. As per the estimates by UBS, by 2020, Artificial Intelligence alone has the capability to reach a market cap of $120-180 billion.
AI in the Healthcare Industry
Healthcare is another field where AI and ML have put the best foot forward and made a significant impact. AI in healthcare can help frontline doctors become more productive and efficient. The technology also plays a pivotal role in ensuring effective back-end processes. According to the stats by Global Market Insights, the AI market in healthcare will increase up to 10x by 2025. It will become a massive $13 billion industry, based on the data provided. Many start-ups have begun to deliver precision medicine using these technologies, whereas others analyze medical data and generate reports using deep learning.
Disruption in Other Industries
Artificial Intelligence and Machine Learning are the turnkey technologies influencing several industries, including banking, retail, finance, weather forecasting, self-driving, logistics, and so on. The technology is providing enormous opportunities for industrialists to discover, research, and build new businesses.
However, AI and ML apps need the power of parallel processing provided by Graphical Processing Units. Though owning a GPU hardware includes 3-year repayment costs, that’s quite difficult for the entrepreneurs who have just started in this space. Also, there is a lack of cost-effective GPU units in the market. So, the development and availability of Open Source frameworks have made it easier to get started with AI and machine learning.
In the End,
AI and ML is still the hottest trend that is here to stay for sure. Start-ups have ample opportunities to revolutionize and disrupt. There have been talks that AI is going to replace many jobs. But the truth is, AI will replace and simplify tasks, not jobs.