85% of AI start-ups will fail within 3 years.

[mvdheuvel1983]

This is an opinion piece. 85% of AI start-ups will fail within 3 years. Link to article. That's what they have said. But what do we think. We use the internet everyday and may even be using one or two AI tools to help us become organized, productive and efficient. Hundreds of AI start-ups are spring up everywhere everyday - while some are jumping in without due diligence some, some are doing it for the money while some others what to make an impact. The AI startups boom is compared to the dot-com bubble where a lot of them failed. Some AI start-ups are: Open AI, Frame AI, Jasper, Drafter AI, Smartly.ai.
What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

[Wiwo]

Snip~

On a personal note,  I don't see any future in AI development most especially when and where it usage are limited,  and I don't equate any credence to AI project since I have the mindset of it result being hot generated and doesn't pass through if put into real time usage unless it results and data are subject to human contributions for accurate results.

But at this point, AI is trying to prove itself to be independently functional void of human interference and this assumption is what will lead to the fail of AI development in the shortest time,  because AI is gradually losing it popularity.

[panganib999]

This is an opinion piece. 85% of AI start-ups will fail within 3 years. Link to article. That's what they have said. But what do we think. We use the internet everyday and may even be using one or two AI tools to help us become organized, productive and efficient. Hundreds of AI start-ups are spring up everywhere everyday - while some are jumping in without due diligence some, some are doing it for the money while some others what to make an impact. The AI startups boom is compared to the dot-com bubble where a lot of them failed. Some AI start-ups are: Open AI, Frame AI, Jasper, Drafter AI, Smartly.ai.
What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

I think there's basis as to why this is the case. For one, the AI industry is not only infantile to the point where not a single one of these companies have made a relatively perfect form of artificial intelligence, and I doubt this would happen within our lifetimes but this apparent immaturity of the industry makes all of these companies try out stuff that would linger to the public. Think of it as the smartphone era with all the wacky features that old phones used to have like projectors and even infrared cameras, but with AI and for the most niche use-case.

Besides that, AI uses so much computational power it's astonishingly stupid. Like the power it takes to just run ChatGPT takes its creators millions of dollars per week (correct me if I'm wrong) just to make sure everything is neat and working. And since startups solely rely on pooled funding and I guess crowdfunding as well, you better believe they couldn't and wouldn't be able to deliver what they promise, which obviously leads to their downfall.

[tabas]

I do think that it will happen. Well, I have been looking at the other industries startup market and seen that many have closed down already and when the market is too saturated for these AI/tech startups, for sure that many of them will have to close down because of how crowded the market is. 3 year span of time I think is already enough and we'll see that many of these will either continue and try to survive or will flourish and then the others to decide to close down. One thing is for sure with technology, these that are currently seeing to be amazed with their development. If they don't do better in the upcoming years, they may be obsolete and a newer tech will come.

[Nwada001]

I have not used any of the mentioned AIs before; in fact, I don't actually know what the main purpose of any of them is. But AI or not, one thing is sure about projects: if they don't have a good use case, they will definitely fail. If their use is out of line, then they will fail. The world is developing every now and then, and if you, as a project owner, are not upgrading your project to match the trends and things that the world actually needs, then the only thing you should expect is failure.

[robelneo]

What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

There's a big probability it just depends on who funded and develop these AIs' I don't think Microsoft after funding their AI for $10 billion will be out of business as they are one of the pioneers, we have an AI now, and because so many industries are being helped to cut their losses.

Based on the article the AI creator who are likely to go out of business are small starts that take the opportunity to come out with their own AI for profit, we expect the technology giant like Google and MSN to beat and swallow these small developers, so yes I agree with the article.

When there is a trend and there is an opportunity on that trend expect companies and developers to take a shot at it, but in the end, if the big companies concentrate on it, they will emerge as the winner, while small companies will have to step down and enjoy their profit.

[joniboini]

I read the article and I can agree on some points. They mentioned two main reasons why start-ups will fail, either running out of cash or getting bought by big players. Keep in mind that they specifically talk about AI start-ups, not the AI industry itself. If they define it that way then yeah, most of the start-ups will fail.

If their use is out of line, then they will fail. The world is developing every now and then, and if you, as a project owner, are not upgrading your project to match the trends and things that the world actually needs, then the only thing you should expect is failure.

Marketing is also playing a huge part nowadays. You can see how some meme coins explode without having any different use case, for example, I believe the same thing will happen in the AI market. I mean, a smart chatbox is not exactly new, just that they become popular recently due to marketing and trend. CMIIW.

[Nwada001]

Marketing is also playing a huge part nowadays. You can see how some meme coins explode without having any different use case, for example, I believe the same thing will happen in the AI market. I mean, a smart chatbox is not exactly new, just that they become popular recently due to marketing and trend. CMIIW.

Yes, marketing will only take them to the top and bring in investors and buyers, but that can't keep them there forever. As soon as the hype of those huge marketing influences dies down, you will see those projects drop drastically because they lack everything it takes to be in those positions. Let's take a good look at some NFT projects back then and where they are right now, as well as a few meme tokens like you have mentioned.

[rat03gopoh]

Those who would be the first to leave the room were the group that had come just to have fun with the Ai machines. However Ai have their own future for the people who have an interest in their use although only a few will remain because they have been the pioneers of their kind. For example, ChatGPT is a sophisticated answering machine, midjourney is a translator of thoughts into images, etc.

[xSkylarx]

The article really has a point because it is still a business. If we look at it from a bigger perspective, those big companies will really try to acquire those start-ups right now and implement them on their own, which we mostly know will either fail as there is new management or it will just go away. AI really requires a huge budget in the long run, and if that start-up company does not have a huge budget over time, they will go bankrupt. Though AI itself will be in demand for sure in the future, big companies will really take part in it.

[Yamane_Keto]

I read that countries have begun to organize fields of AI and how to share data among themselves, so it does not seem that this field will be a bubble, but rather it exists and will have a future.

As long as the field exists and it will have a future, the companies in it will inevitably continue, but with the lack of funding and the multiplicity of these companies, I expect that technology giants such as Alphabet, Google, Microsoft, Apple, etc. will dominate the market by buying these small companies or bankrupting others.
I will quote from here that there are 199,983 companies that went bankrupt in Europe because of the energy crisis in 2022.

https://bitcointalk.org/index.php?topic=5452614.msg62238781#msg62238781

https://www.creditreform.de/fileadmin/user_upload/central_files/News/News_Wirtschaftsforschung/2023/Insolvenzen_in_Europa/2023-05-11_AY_OE_Analyse_EU-2022.pdf

the bankruptcy of companies is not important as long as the industry provides a benefit to humanity.

[wxa7115]

This is an opinion piece. 85% of AI start-ups will fail within 3 years. Link to article. That's what they have said. But what do we think. We use the internet everyday and may even be using one or two AI tools to help us become organized, productive and efficient. Hundreds of AI start-ups are spring up everywhere everyday - while some are jumping in without due diligence some, some are doing it for the money while some others what to make an impact. The AI startups boom is compared to the dot-com bubble where a lot of them failed. Some AI start-ups are: Open AI, Frame AI, Jasper, Drafter AI, Smartly.ai.
What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

Just 85%? the majority of the projects related to AI are being released just because of the popularity ChatGPT got, and while there are many investors out there which will be willing to invest in them, what is their use case? Now ChatGPT has without a doubt a use case but we do not need hundreds of copies doing the same thing.

So unless one of those projects is significantly better than ChatGPT then I do not see them getting the attention of the general public, which means those projects will eventually disappear.

[Gyfts]

Majority of businesses fail within five years. For tech related firms it isn't a flaw that most of them fail, it's part of the inherent design.

These companies secure investors and get through initial rounds of funding to produce something tangible -- they develop a profitable business model and hope to gain enough revenue to be profitable in a 3 year period. If they're not profitable enough to secure more investment, then they go under. End goal for a lot of these businesses is to be bought out by a larger tech firm or license out the technology. These companies exist as R&D vessels. VC's will essentially gamble on these companies and hope they run through enough of them that they eventually stumble on a winner. They're not walking in with the expectation that the company will exist over a decades time.

[bayu7adi]

In the realm of AI, there shall emerge a few victorious and invincible entities, bestowing their benevolent impact upon the public. The majority shall falter, finding no users in their midst. This moment marks the precipice of the AI explosion, for there are still countless developers eager to explore this industry, while the public remains in the testing phase. Within a span of 2 or 3 years, the public shall instinctively discover the platforms most suited to their individual needs. It shall become evident which AI platforms are futile, and undoubtedly their numbers shall surpass those that endure.

Yet, in my recent observations, emerging AI technologies consistently venture into uncharted territories untouched by their predecessors. While some may choose to compete by delving into the same sectors, such instances remain few. It is conceivable that we await a slightly longer period for each sector to witness the emergence of two or more competitive platforms.

[Furious 7]

What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

AI is currently still in a very high hype regardless of what will happen in the future, they are currently really very popular, but indeed technology is changing more and more and it can be said that this is like a prototype to pave the way towards a more sophisticated future. will come.
Regardless of whether they will fail or not, in the end, this must also continue because indeed, with this condition, systems in technology continue to develop and even if they fail in the end, there will definitely be something new again and again in the future, one might even say that it tends to be more sophisticated. than this.
What I'm worried about with this condition is not about how this AI startup failed but whether we really can still be able to keep up with this because indeed if we are left behind then we definitely won't be able to continue to adapt and that is very worrying.
I prefer to worry myself about dealing with technology like that because the longer it seems, I really feel that we have to keep trying to keep going and adapt better to the current technological sophistication.

[jrrsparkles]

This is an opinion piece. 85% of AI start-ups will fail within 3 years. Link to article. That's what they have said. But what do we think. We use the internet everyday and may even be using one or two AI tools to help us become organized, productive and efficient. Hundreds of AI start-ups are spring up everywhere everyday - while some are jumping in without due diligence some, some are doing it for the money while some others what to make an impact. The AI startups boom is compared to the dot-com bubble where a lot of them failed. Some AI start-ups are: Open AI, Frame AI, Jasper, Drafter AI, Smartly.ai.
What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

There is no wonder if that happens and that's how every business model or evolution in the technology has been. For example bitcoin is being the most successful cryptocurrency while thousands of others tried to replicate the same success of Bitcoin but none of them came close to it.

Majority of the business will fail in the first two years and only which is having enough capital to survive those hard days, popularity behind their name, successful marketing and lots of others can keep them in a race.

[Rruchi man]

What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

85% of them may fail because there will be other AI technology to quickly become a preference if these present AI's fail to meet up to usage.

 These AI's that are already in existence will become prototypes for these new AI's to build from and offer something better so many will fail and stop being used unless they become better.

AI technology is the future and from what already exists presently, this technology can only get better and technology progresses.

[dimonstration]

What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

The percentage is very harsh but I think they have a point since most of the startup is just a copy cat project that just want to benefit on the AI hype. It’s same scenario when NFT, DeFi, Meme coin and other trend in crypto space that got wipe out after 3 years more or less.

Elon invested huge money on an AI project which means there’s a real project that will dominates them all in the future while this mediocre AI project is just writing a whitepaper with zero work done.

[isaac_clarke22]

This is an opinion piece. 85% of AI start-ups will fail within 3 years. Link to article. That's what they have said. But what do we think. We use the internet everyday and may even be using one or two AI tools to help us become organized, productive and efficient. Hundreds of AI start-ups are spring up everywhere everyday - while some are jumping in without due diligence some, some are doing it for the money while some others what to make an impact. The AI startups boom is compared to the dot-com bubble where a lot of them failed. Some AI start-ups are: Open AI, Frame AI, Jasper, Drafter AI, Smartly.ai.
What do you think, are we experiencing an AI startup boom like the dot-com bubble? And do you think that 85% of them will fail within 3 years?

It's going to be like those scenarios here in my area where almost every coffee shop are popping up here in my country. Right now, hell like I know if there would be AI writers here in my area within few years, but I know surely that those startups aren't gonna last long.

The competitions is just so fierce that I don't even know what brand would I prefer, lol. I do have a gut feeling that there would be a leading brand for these though, just like how popular ChatGPT became and it became a well-known interactive AI while back then we all have CleverBot.

The percentage is very harsh but I think they have a point since most of the startup is just a copy cat project that just want to benefit on the AI hype. It’s same scenario when NFT, DeFi, Meme coin and other trend in crypto space that got wipe out after 3 years more or less.

Oh yeah, those old hypes that just died down. This is a bit different scenario though since it affects not just crypto but every single non-crypto businesses as well.

[dothebeats]

If the current AIs they are using won't be updated any time soon, they will probably see a huge decline on the efficiency and effectivity of the tools that they are using and will probably be replaced by even more efficient and effective startups with the updated AI tools. I think the game isn't creating the best startup with the AI tools available, but rather knowing how to maintain, update, and develop AIs that you could sell to people who are looking for these tools. 3 years is already an ample time to learn how to do just that given the amount of resources we have available right now. There are no longer excuses that are acceptable if you want to take advantage of the AI boom.