Machine intelligence is red hot space but startups now face uphill battle

xClone
Steve Ardire
Strategic Advisor AI Startups
sardire@gmail.com @sardire skype: sardire
http://www.linkedin.com/in/sardire
100% focus #AI startups ( 50 startups over 20 years ) business strategy, close
funding, go-to-market, speak at AI conferences
• Podcast: Getting Illuminated on AI via @sardire @sandramp https://goo.gl/KqYiT2
5500 impressions since Feb 7 when posted
Just listened to whole podcast. Great interplay with Sandra, both were very articulate, providing great insights
and explanation on the subject. Gave me a better appreciation of your skill set <sandy.klausner@cubefog.com>
• Inside Mind an AI Startup Advisor via @LolitaTaub https://goo.gl/ysaKL1
Gigs include
& more soon
MachineIntelligence is Red Hot Space but Startups Now Face Uphill Battle
http://aitrends.com/webinars/ March 23, 2017

Shivon Zilis: startups shifting away from building broad technology platforms with
“machine intelligence as magic box” to focusing on solving specific business
problems to deliver real value.
Steve: but no slam dunk for startups because of 3 significant hurdles to overcome.
In Jan 2016 did https://re-work.co/blog/guest-steve-ardire-machine-intelligence-startups

Actually it’s more like the Missing Apex here
I call it passion with purpose
Maslow’s original
Hierarchy of Human
Needs ( 1943 )
The Missing Apex of
Maslow’s Hierarchy
( before 1970 )
http://bigthink.com/robby-berman/the-missing-apex-of-maslows-hierarchy-could-save-us-all

“AI Is About To Go Mainstream to Reshape The Workplace and your
organization's Data Strategy"
My 3 takeaway points
1. Machines can attend to vastly
more information and more
complex processes than human
beings
2. Many jobs will be automated but
drive human capital to higher-
order, non-routine cognitive
creative work
3. Augmented Intelligence where
machines & humans work
together will become pervasive.

• Opensouce Algorithms & software
libraries (e.g., TensorFlow)
• AWS, Google, MSFT Azure clouds
easily accessible and inexpensive.
• AI shift from academic labs to big
corporate players who now Hoard
Talent and Acqui-hire AI startups
• $5 billion 658 AI deals in 2016 with
$ invested up about 60%.
• Non-U.S. startups ( U.K., Canada,
France, Israel, China India ) grew to
38% of global total in 2016 up from
21% in 2012. With Trump bet 50%
in 2017 and continue to grow.
Dynamic forces shaping AIGinny Rometty “ in ﬁve years, cognitive AI will
impact every decision made” from healthcare to
education to ﬁnancial services

It’s all about AI Workplace
Automation
• Every application is going to become intelligent.
• AI Market to reach $70 billion by 2022
Why need ?
Collaborative Overload
http://s.hbr.org/1P3KGIG
20% to 35% of value-added
collaborations come from just 3% to 5%
of employees
• Prediction not same as automation
• Most valuable workforce skills involve judgment
• New talents & expertise for managing

Companies Reimagining Business Processes with Algorithms
https://hbr.org/2016/02/companies-are-reimagining-business-processes-with-algorithms
Algorithms redesign business processes like humans did during reengineering movement.

Most disruptive emerging tech to change the world
AI = augmented intelligence
where #machineintelligence
works with humans
but don't agree in 5 years because it’s happening now

Now > 1600 AI startups and private companies with > $12B of funding

CB Insights: 140 AI start-ups have been acquired since 2011
However most are acqui-hires and value can get to $2.5M/employee

AI by the Bay conference what VCs are looking for in AI startups
mostly obvious sound bites and platitudes
Kevin Kelly: “Business plans of next 10,000 startups Take X add AI” sounds good
in theory but in practice 9 of 10 startups fail ( maybe less for AI )

MEDHA AGARWAL, REDPOINT VENTURES @MKHANDEL MARCH 11, 2017
Opportunities for machine-learning startups: An investor perspective
http://venturebeat.com/2017/03/11/opportunities-for-machine-learning-startups-an-investor-perspective/

so where do startup play here ?
This is much better than previous slide so I’ll convey key snippets

Verizon Ventures and R/GA team up for joint media tech venture http://fal.cn/uBMF
invites applications from growth-stage & innovative early-stage companies....ahhh not for $100K
#cheapskates

Useful Framework for Raising Capital
http://versionone.vc/marketplace-fundraising/#ixzz4Fk6tPJrU
seed+
hardest
to close
funding

AI has
jumped the
shark!
What’s changed in past year making it harder for startups?
• Big players dominating marketing messaging so startups must be smart and bold
to get attention, funding, and customers
• too many peeps now think they’re an AI expert i.e. analysts, VC’s, C level peeps in
Global 2000 companies, even Jane and Joe Knowledge worke
The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.
— Stephen Hawking

even though SalesForce spent > $1B on AI acquisitions
The implicit reasons
• Intensifying competition from
Google, MSFT, Amazon, Facebook
• Drive up stock prices
Key Messages
• Making data simple & accessible
• Get inspired about data.
• Empowering people & teams in new ways
• Building hybrid cloud architectures for data-rich
workloads
Key Takeway
• IBM delivering on promise of cognitive business with synergy across
Watson Cloud to Watson IoT, and 4,000 startups now on the IBMCloud.

Google turning more to partners
rather than just acquisitions to
push its cloud to try and woo more
enterprise customers becoming
more the Microsoft, Amazon, IBM
Google says it has best AI and has joined chorus to "democratize" AI

Google buys a company every week but IMO more about talent
acquisition to prevent disruptive competitors

Amazon to Battle Google w/ New #Cloud Service for #AI Software
http://bloom.bg/1TLkXvw May 2016
Service will heighten competition with IBM, Microsoft
Amazon launches Amazon AI to bring its machine learning
to developers http://tcrn.ch/2gJ9o9g Nov 2016
Amazon to bring Alexa & cloud-based deep learning to call centers Feb 2017
http://www.geekwire.com/2017/report-amazon-plans-bring-alexa-cloud-based-deep-learning-tools-call-
centers/

Why Microsoft’s buy out of Maluuba should put other ‘AI’ startups in check
http://www.geektime.com/2017/01/16/curiously-speaking-why-microsofts-buy-out-of-maluuba-
should-put-other-ai-startups-in-check/
It’s raised bar so your AI startup must be different and know how to execute ;-)

Baidu launches SwiftScribe, an
app that transcribes audio with AI
Baidu’s chief #AI scientist Andrew Ng departs to pursue his research interests
https://thetechportal.com/2017/03/22/baidu-chief-ai-scientist-departs/

so where does your AI startup play?

https://goo.gl/77XnmJ
1. Name the category
2. Evangelize, Inspire
3. Seed the market with success stories and case studies
• Identify potential references.
• Create success stories.
• Find Developer Heroes
• Joint PR
4. Rinse and Repeat
But always refine and develop new examples and success stories

The central piece of exClone is derived from the Human Dialogue. These are referred to as
“dialogue patterns” tailored for different chatbot objectives such as sales, advising, assisting
http://exclone.com/

https://www.soulmachines.com
#EmotionalIntelligence
@Soulmachines Highly engaging human-like Avatars, with personality and character.
Brought to life with our Embodied Cognition Platform. Emotional Intelligence for AI
Auckland, New Zealand

Intraspexion™ uses a patented "early warning" system featuring Deep
Learning to alert corporate counsel to litigation risks in near real time.

• Nigel Artiﬁcial Intelligence Learns Common Sense via Observation
where "Intelligence" is based on physics and quantum mechanics
(subnet modeling) not neuroscience.
• There is no deep neural nets or a flavor of deep learning.
• In theory, AGI doesn't need to be trained in order to learn, as opposed
to other established cognitive platforms which must ingest training
data in order to make sense of tasks.

Machine intelligence is red hot space but startups now face uphill battle

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Machine intelligence is red hot space but startups now face uphill battle