Investor Funding in Artificial Intelligence (AI) Startups has Increased 10 Fold Over the Last 5 Years: Says Zinnov, a Leading Management Consulting Firm
BANGALORE, October 18, 2016 /PRNewswire/ --
- The Global Startup Distribution for AI Stands at $14.28 Billion, With US Dominating the Startup Landscape and Europe Growing Rapidly
- With an Investment of $1Bn and Nos. 441 Startups in Europe (Including UK, France and Germany) Fintech, Healthcare and Retail are the Top Verticals
Leading management consulting firm, Zinnov, today released a first-of-its-kind study on the Global Artificial Intelligence market titled, ' The AI Spring: Innovations for the Next Decade' sharing insights into a domain which has witnessed momentous growth and development in the last 20 years. The released Zinnov study significantly pointed out that Artificial Intelligence (AI) today is disrupting some of the oldest and disruption-immune verticals like automotive, manufacturing and finance. Three key major technology improvements over the last 20 years across computing capability, analytics capability and algorithm improvements are enabling the new wave of Artificial Intelligence (AI) adoption. The domain is hence, witnessing a considerable interest in terms of funding as well, with a ten-fold increase in investments globally (from $94M in 2011 to $1049M in 2016) in the last five years.
Laying specifics about the landscape, the Zinnov study stated that there are three kinds of companies that are investing into Artificial Intelligence (AI) today. The first ones are called The Disruptors. These are startups who are building Artificial Intelligence (AI) platforms and applications. The second are termed as Tech Mafia. These are 5 companies including Apple, Google, Facebook, Microsoft and Amazon. These companies collectively have a market cap over 1 Trillion Euros and employ an average of 5000 engineers working on Artificial Intelligence (AI), while the third category is that of the Top 500 Global R&D spenders across verticals.
Divulging details on the geographical spread, the first-of-its-kind Zinnov study pointed out that with 2277 Artificial Intelligence (AI) startups globally, and the current market of over $14.28Bn, U.S currently dominates the global Artificial Intelligence (AI) startup landscape. Europe's Artificial Intelligence (AI) Startup ecosystem is also emerging and growing rapidly with a total of 441 startups currently and an overall investment of $1Bn across UK, France and Germany; with Fintech, Healthcare and Retail being the Top verticals. The study also pointed out that the Global Organizations are also well leveraging the European start-up ecosystem.
Talking about this fast growing segment, Pari Natarajan, CEO, Zinnov said, Artificial Intelligence (AI) is the disruptive force of our time that will change industry structures drastically. The next-generation of products will be developed by Artificial Intelligence (AI). AI is not just enabling new product features but is also playing a role across the value chain of industries and is the fastest technology deployment to happen across industry verticals.
"In the last 5 years alone, investments in Artificial Intelligence (AI) have grown ten-fold from $94M in 2011 to $1049M in 2016. We believe that the potential for disruption in Artificial Intelligence (AI) will be higher for verticals where there is a high level of data availability and high reliance on software," he added.
With the AI landscape being well segmented into Applications, Platforms and Infrastructure, Startups and Tech Mafias are leading the AI ecosystem in terms of future readiness, said the Zinnov report. Since Tech Mafias are highly profitable companies, they dominate the Artificial Intelligence (AI) platform space; while startups are largely focused on industry applications and G500 companies are still figuring out their space but eventually play a key part in industry applications. Based on this, the Zinnov study brings to light that the profit pool in Artificial Intelligence (AI) based innovations will indeed be captured in the Platform layer (Dominated by Tech Mafias) of the landscape. The report further adds that while startups will overtake enterprises to capture the Artificial Intelligence (AI) market, Tech Mafias are needed to provide the much needed infrastructure. These Tech Mafias are building an AI-first future by investing in creating platforms and are acquiring younger Startups to accelerate the pace of AI innovation. They are also creating a broader Artificial Intelligence (AI) ecosystem through open platforms and leveraging a globally distributed talent pool to drive AI innovation.
Last but not the least; the study added that as Artificial Intelligence (AI) becomes a top priority in the innovation horizon of various global enterprises, its implementation comes with certain challenges. At Zinnov, we are helping large companies to adapt Artificial Intelligence (AI) through four simple steps:
Step 1: Identify the key business use cases that can help reinvest existing products and services or create new opportunities for growth.
Step 2: Ensure you are able to create and access a large set of data sources that will help train the AI engines.
Step 3: Ensure you have a platform that takes advantage of all the AI led innovation happening in the ecosystem between the Tech Mafias, Startups and Universities.
Step 4: Ensure the engineering talent capabilities internally is transformed to include talent pool in locations that will drive the next generation of AI platforms and applications.
Founded in 2002, Zinnov is headquartered out of Bangalore with presence in Houston, Silicon Valley, and Gurgaon. In over a decade, Zinnov has built in-depth expertise in engineering and digital practice areas. We assist our clients in globalizing their operations and maximizing their footprint by:
- Effectively leveraging global resources for engineering, IT, Digital and Business Ops for higher throughput innovation, productivity, cost savings
- Enabling companies to focus on new product development and core business processes by finding the best partners
- Growing revenue for their products and services in India and other emerging markets.
With our team of experienced professionals, we serve clients in Software, Automotive, Telecom & Networking, Semiconductor, Consumer Electronics, Storage, Healthcare, Banking, Financial Services & Retail verticals in US, Europe, Japan & India.
For more information, please visit: http://zinnov.com/
Kinjal Chhetri Panwar
PR, Zinnov Management Consulting Pvt. Ltd.
SOURCE Zinnov Management Consulting
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