Europe: 40% of the startups with an AI stamp are not really using AI

The AI label would bring on average 15% to 50% more investors.

Artificial Intelligence & AI & Machine Learning
Artifical Intelligence by Mike Mackenzie (Flickr)

AI: two letters that are creating a hype around a brand. Two letters that fascinate observers and investors, bring computer engineerings making fortunes and promising a better future, sometimes quite terrifying according to the movie made on AI.

Despite this massive interest for Artificial Intelligence, the two emblematic and fascinating letters are sometimes overated when it comes to the compagnies. A study of over 150 pages made by MMC Ventures, a compagny of risk-capital in UK analysis the european ecosystem gravtitating pretty far from the sphere of artificial intelligence.

MMC Ventures Statistics about companies actually using AI.

So, what are we talking about when we talk about companies with an AI stamp, but not using it. Its a boom in “machine learning”, algorithmes learning by themselves to follow logical rules predefined, based on the analysis of thousands of databases. The AI, that the mainstream one, everybody is already using everyday is the images recogniftion (face recognition, cameras from autonomous cars or IRM scanners) or the analysis of language (connected speakers or automatic translators), are more common in the scientific researches and finance.

Forbes identify page 99 of the study:

“We have analysed case by case the activites and founds of 2,830 start-ups having the AI stamps in the 13 countries of the European Union the more efficient one are: Austria, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden and the UK […]. In approximately 60% of cases (1,580 companies), we have found evidences of the uses of technologies operating under AI”.

In other words, more than 40% of the start-ups, there is not real proofs of a direct usage of AI.

A precision provided to Forbes by the director of research is quite important; the start ups with an AI stamp are not all revendicating their usage of AI. Some of these star-ups are, indeed, put in categories by tiers analysts such as PitchBook, or Crunchbase, providing a fake idea of the actual usage of AI by these companies.

The question now is are these start-ups trying to remove this from studies or analysts websites? The answer according to Forbes is no. Having an AI stamp is hype, and will bring on average 15 to 50% more investors than in a regular start up not having an AI Stamp.