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

[icalical]

This is kinda true, tho I am not sure about the number of 85% since I never do any research on it, but it's I think it's about the right number. And it's not only AI, it happened in almost all break-through project. Like DeFi, in the previous trend or even more common industry like Online Transportation like Uber and Grab, there used to be a lot like this project but then only few is thrive and successful. User will slowly move to one project that are truly know what the users need, some industry doesn't even take up to 3 years to eliminate some projects.

It is the reality, just because AI is the ongoing trend companies focus on it. They never think about the real time usage as well as the affordability. Most of the projects initially focus the premium people which means the company is able to generate revenue reaching small number of people whereas it requires large marketing to make it generate revenue reaching the bottom people. When the real-time usage is connected with the common mans involvement the project turns successful.

Yeah same old same old, most of project just looking to make quick money from the investor, they rarely think about the actual sustainability and scalability, just promising the investors that they might get a profit overnight.

This is kinda true, tho I am not sure about the number of 85% since I never do any research on it, but it's I think it's about the right number. And it's not only AI, it happened in almost all break-through project. Like DeFi, in the previous trend or even more common industry like Online Transportation like Uber and Grab, there used to be a lot like this project but then only few is thrive and successful. User will slowly move to one project that are truly know what the users need, some industry doesn't even take up to 3 years to eliminate some projects.

Remember 2007? The year of ICOs. There were countless number of ICOs launched in 2007 and today only handful are known while rest either collapsed or abandoned by the owners. Today its summer of AI and everyone jumping into this sector for making a fortune. Only project that have right vision and team that has necessary skills along with motivation will survive rest all will be history in a matter of time. Its natural thing that whenever something new pops up, people jump into it for making money.

Yeah I remember than day, a dozens of new ICO project everyday, from very common idea like Real-estate to some weird and wild project like blockchain dating apps and even porn. After ICO then DeFI, move to NFT, move to Web3 and then AI, everyone just jump into the bandwagon, and most of them have no idea what they are getting into.

[1715138568]

1715138568

[slapper]

There are similarities between the AI startup ecosystem and the dot-com boom, but there are also important differences to keep in mind. Contrasting the failure of many dot-com businesses, AI has spread throughout many industries, bringing real benefits to many people.

While 85% may seem high, it's actually rather close to the usual start-up failure rate of roughly 90%. The start-up environment is tough for any business, not just those in the AI sector.

AI has the ability to disrupt sectors, and rising investments predict that many AI startups will be successful. They could have far-reaching effects in areas beyond technology, including medicine, education, and transportation. We live in truly exciting times.

[Raflesia]

very few devs are serious in attaining success of their product but they are more on how to earn money fast. they usually don't care if their product or service will be a hit or not, useful or not,  in the market. so long their pockets are full.

Agreed in this context, Besides that the market has its own way or mechanism of filtering out unsustainable or ineffective projects from time to time. Success is not only determined by the early steps as an adopter, but also by the company's ability to continue to grow while maintaining customer relevance and satisfaction. In the end it is the market and customers that determine the success or failure of the startup.

Indirectly, this means that it really depends on how the company operates and does their work plan and indeed it is true that I agree with this because seeing the conditions, of course, even though there is hype about AI at this time, the sustainability of the company, of course, depends on management and how it works especially in attracting enthusiasts here.
We won't be able to do that without any effort and when the hype is really busy now, how can we improve so that the quality that is run is better than other competitors and is in demand by consumers.
This is indeed quite difficult but if they already know what they are going to do with clear planning then indeed this will not be as complicated as it should be.

[ChiBitCTy]

Oh I would probably say it's going to be even higher than that.  It's very similar to cryptocurrency in my mind.  I've always stated from early on that 99% of cryptocurrency coins/projects would fail, and that's exactly the truth and what's come to be.  I mean I guess some coins can "hang around" until the end of time, but that doesn't mean they haven't failed.

Also, lets get something straight, ChatGPT and those of it's ilk are NOT legit AI.  AGI/Artificial General Intelligence is LEGIT AI.  True AI will completely change our world.  This pseudo AI is changing our world, but nothing like AGI will. Truly self learning, no restrictions built in by the programmers...that's legit AI.

[wxa7115]

I don't have that much idea what is the main purpose of them but in current situation people is really afraid of loosing their job in market. If they don't have good use of their projects then most probably they will loose their trust and importance. One of the biggest mistake that AI startups make is focusing too much on technology without realizing that business is more important then technology. There is one more problem in AI is insufficient or low-quality data. AI systems function by being trained on set of data relevant to topic they are tackling.

I think for the most part the lack of data problem is basically solved at this point, the algorithms behind the different AIs have existed for a long time, but they were ineffective due to the lack of data and we were not aware of all the applications in which we could use them.

But now people are generating data almost every single second of the day, then this data can be compiled, processed, tagged and finally used to train an AI to do almost anything we can imagine.

[el kaka22]

Why do people even start these? I mean it doesn't make sense to me at all because we are talking about something getting saturated so much that everyone is doing it. Obviously a lot of people will fail, because at the end of the day way too many people are doing it, so how could all of them succeed?

This is a high end technological idea and people who are good at what they are doing should be doing it, people who "think" they can do it will end up failing. I personally hope that the best thing about this would be making a profit based on peoples talents and we do not have enough talented people in the AI world as the number of companies suggests, so that means it is going to be a big failure when the time comes, it is too obvious.

[Flexystar]

I don’t even know why they made it. We were so happy minding our own business and doing that 9-5 perfectly. Anyways, there is high chance that it will get less popular as we move forward in the future. Even best of the best admirer of technology think that AI are dangerous for the economy. In one of the interview from Elon Musk he himself agreed that AI is disastrous as compared to nuke bombs. We don’t have to be sceptical about this thought because it can always happen. AI is slowly getting injected in every field which means it’s dangerous. So yeah why not, I would like to think that way as well.

[Litzki1990]

There are many AI technologies around the world now that are mainly developed to improve technology and make human tasks easier. But while there are many such technologies, many AI technologies fail to keep pace with the modern world. Mainly due to not updating with time, not maintaining well and not updating advanced systems, these technologies are slowly losing popularity to people. As a result, people are withdrawing themselves from such AI technologies. As easy as it is to build an AI technology, it is difficult to control it well. Those who develop such technology must first think about how they will control this technology. Only if they find a way to control the technology well, they should bring such technology to the people.

[Franctoshi]

Snip~

On a personal note,  I don't see any future in AI development especially when and where its usage is limited,  and I don't equate any credence to AI project since I have the mindset of it result in 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 failure of AI development in the shortest time because AI is gradually losing its popularity.

I agree with you, AI is dependent on the data that is supplied to them, despite the fact we are in the Era of the AI bubble, in the future, AI may have no ground when its limitations must have been seen by all, But what can keep it thriving is if some modifications or improvements are done to enhance its performance to have a better experience with utilizing them.

However, one thing I know is no matter the level of improvement or modification done to it,  AI can never be human, and that will always remain its limitation.

[wxa7115]

It is predicted that 85% of AI start-ups will fail within 3 years. While AI is a rapidly growing industry, it is also a highly competitive one, with many companies vying for a slice of the market. The failure rate is high due to various reasons such as lack of funding, poor management and inability to deliver a product that meets market needs. One of the biggest challenges for AI start ups is obtaining funding. Investor are often hesitant to invest in AI companies due to the high risk involved Even if a company does secure funding, it can be difficult to manage that money effectively. Poor management can lead to overspending and a failure to deliver on promised products or services.

This reminds me what we saw many years ago with search engines or with social media websites, in which everyone is striving to be at the very top because they know there is no comparison between being there and being the second place, as this is another business which is highly dependent on the data they can gather.

And the more users you get the better and the more data you receive, which can later be used to construct a better AI model, and eventually there will be no comparison between those models, so whoever can get at the top now it will become a monopoly.

[Pierre 2]

I am %100 sure not even 85 but %95 of AI startups will fail. Most of them are trying to be early birds here attracting people to invest and make money. Most of them do not add a lot on top of OpenAI project. I think leftovers can be huge tho. For example I saw grammarly take on AI assistance application. It looked awesome to me. It was suggesting possible e-mail with different moods for example. Clever ideas will always be successful. I would invest in such brightminded AI projects for sure but its hard to be sure about their development process.

[Wend]

Dont get me wrong but i want all AI start ups to fail. they are eating us

AI is not as scary as you think, they will not eat us or take our jobs. Technology is developed for the purpose of making people more and more convenient, it is not created to be a killing machine that takes away jobs and pushes us to the edge of the abyss. Society is developing like a storm and we also need to adapt to them if we do not want to be eliminated. Let's always improve ourselves and make ourselves better if we don't want to be left at the bottom of society.

[TimeTeller]

I am %100 sure not even 85 but %95 of AI startups will fail. Most of them are trying to be early birds here attracting people to invest and make money. Most of them do not add a lot on top of OpenAI project. I think leftovers can be huge tho. For example I saw grammarly take on AI assistance application. It looked awesome to me. It was suggesting possible e-mail with different moods for example. Clever ideas will always be successful. I would invest in such brightminded AI projects for sure but its hard to be sure about their development process.

The reason why most of them will fail is because they were created for the developers' main desire of pocketing the money.
I believe, very few of them have the mission of really launching their project to the public and have real use for it.
So yes, a lot are just riding the hype, trying to pocket some, and move on. They don't want to sustain their business in the first place.
And for sure, some of them don't even have the idea how this business works, they have no knowledge on how to move forward with their developments.

[jacafbiz]

I believe it will be higher than 90% in my own understanding. The AI hype has come to stay and I believe the ChatGPT is just the start of the good thing we should expect from the AI evolution and most of these companies just want to ride the hype and do not know how these AI should be incorporated into their company. If company like Google are struggling with this decision, I know a lot of these companies don't even know what to do

[Cryptomultiplier]

It is quite understandable considering the fact that A.i tech hasn't generated alot of usage prior to its current introduction.
It is still under very much scrutiny and care ought to be taken where these living computers  have little restrictions or fail-safes.
Any start ups relying on it to scale profit heights, will have to be more patient till it gains human trust of usership.

No different from the normal startups that would require at least 5-7years before one can truly say it is successful, is also an A.I integrated business with same or close to same fate.  
If entrepreneurs learn to fix their strategies or methods of executing their business ideas on time, even an A.I start up, would survive, thrive and expand into other sectors of growth.

[STT]

Theres no danger of AI stopping a person finding a job that they were capable of before.    The failure in AI startups is because its not easy to deploy this technology or to replace humans who can do so much in a variety of ways without alot of investment.
  What will happen is AI is a tool to assist people, in fact its already out there.  The idea we have massively leaped forward somehow is a bit of a dream, I do hope we took at least a step forward but its been at great cost and even now will take time to actually develop and mean something.    AI in operation now is going to be found on queues of people waiting to query a company customer service on some issue.   Extremely common repetitious low quality info, like the product is non responsive & AI will answer we have a service update ongoing for an hour please phone back.  Do you really want an intelligent human have to speak those words a thousand times over, its the greatest of waste to make a person say something so simple.   We know from the past computers, machines are the best usage with unwanted work; this is all thats going to happen.
  They arent taking over the world, great things are possible and they could already beat us at chess 25 years ago so even greater things but it is about repetition and best use of highly versatile humans efficiently put elsewhere.   It will make the people better placed and society richer, nothing to fear imo.

[Mauser]

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 read an article on the weekend that analysed the last few earning calls of the biggest corporations and how often they would mention AI in it. They found that since 2021 there was a huge increase in focus on AI from all types of sectors like Financial Services, Pharmaceuticals, Tech Giants, etc. So we can already see today that most companies identified the great potential of AI and the need to be part of the change. What many companies are doing now is trying to setup teams to develop their own AIs and not take the AI from other companies. Which would make future acquisitions not so important if the knowledge of AI is already inhouse. It's interesting to see a lot of new companies focusing on AI, but I am not so sure in how much value they are going to bring to the table. When all the big companies develop their own AIs then the profit potential for these startups will be very limited and it could be very likely that we are seeing a big rise in bankruptcies over the next few years.

[Cryptmuster]

AI is not as scary as you think, they will not eat us or take our jobs. Technology is developed for the purpose of making people more and more convenient, it is not created to be a killing machine that takes away jobs and pushes us to the edge of the abyss. Society is developing like a storm and we also need to adapt to them if we do not want to be eliminated. Let's always improve ourselves and make ourselves better if we don't want to be left at the bottom of society.

It is worth evaluating all possible options, I do not agree that AI does not contain any dangers to humans. Perhaps for many things AI will be used for the benefit of humanity, but there is also a certain threat. But this topic is not about the dangers of AI, but about how successful projects are. It seems to me that now it is difficult to say in percentage terms, but it seems to me that the statistics will be the same as in any other direction, and on average 9 out of 10 projects will fail over 10 years.

[Vishnu.Reang]

I think for the most part the lack of data problem is basically solved at this point, the algorithms behind the different AIs have existed for a long time, but they were ineffective due to the lack of data and we were not aware of all the applications in which we could use them.

But now people are generating data almost every single second of the day, then this data can be compiled, processed, tagged and finally used to train an AI to do almost anything we can imagine.

There are fear in human society that AI will replace human jobs soon. When in India on 1955, the government introduce computer for first time to Indian citizens that time people was afraid to loose their jobs But who learn computer that time, they got more opportunities because technology always create more jobs. In same ways when AI succeed then more jobs opportunities will be create. For first time it may seems like it is replacing human task or jobs but at the end AI expands job market for human being.

[AmoreJaz]

I think for the most part the lack of data problem is basically solved at this point, the algorithms behind the different AIs have existed for a long time, but they were ineffective due to the lack of data and we were not aware of all the applications in which we could use them.

But now people are generating data almost every single second of the day, then this data can be compiled, processed, tagged and finally used to train an AI to do almost anything we can imagine.

There are fear in human society that AI will replace human jobs soon. When in India on 1955, the government introduce computer for first time to Indian citizens that time people was afraid to loose their jobs But who learn computer that time, they got more opportunities because technology always create more jobs. In same ways when AI succeed then more jobs opportunities will be create. For first time it may seems like it is replacing human task or jobs but at the end AI expands job market for human being.

humanity will always cope with the evolving technology. it is true that some jobs can be replaced by AI. however, do take note that some jobs are also created out of this. so it depends on the people how he will make himself competent with the current requirements in the job market. people can adjust by equipping himself with the current needs.
the development in AI industry for sure will assist a lot of repetitive problems in the industries. so we need to look at the brighter side of this rather than linger on its negative impact in the job industry.