According to a research conducted by AI-42 Market Intelligence, a leading Artificial Intelligence Market Intelligence provider, only 5.45% of all AI companies analysed have a high degree of AI competence, 41.35% are totally lacking AI expertise. The average financial health of AI companies is low, only 4.59% are in strong financial condition.
To get an “x-ray” view of the market, 42 conducted its own research of the AI market: 10,861 companies have been evaluated by applying a proprietary quantitative & qualitative analytics approach, where metrics like market environment, financial health, customer-, partnership and social media momentum have been quantitatively analysed and expert scoring of metrics like AI competence, AI focus, AI growth potential or AI sector potential has been added. Data points like scientist employment growth rates, number of patent filings, publications and research papers of these companies have been taken into account.
Only 592 (5.45%) of all the AI companies analysed have an AI score of more than 500 (on a scale from 0-1,000, a weighted metric based on AI competence, AI focus, AI growth potential and revenue contribution). Only 6,371 (58.65%) of them have a score of more than 250, which is considered a minimal AI expertise. Also, the financial health of most of the companies is questionable. Only 499 (4.59%) are in strong financial condition.
Also, a recent survey from London venture capital firm MMC found that 40 percent of European start-ups that are classified as AI companies don’t actually use Artificial Intelligence. They studied some 2,830 AI start-ups in 13 EU countries to come to its conclusion. On the flipside, have the artificial intelligence market forecasts been constantly revised upwards, Tractica currently assumes a growth from $5.4 billion in 2017 to $105.8 billion by 2025, a prediction which was $80 billion just a few months ago. This creates an environment of possibilities but also the challenge to identify the real pearls.
It is clearly confirmed that Artificial intelligence is one of the most misused terms in tech today, it has become a hyped technology. It is important to identify the real quality AI players in the market, which has become a more and more challenging task. Only by rigorously analysing massive data about these companies, combined with a high level of AI expertise, a sufficient opinion can be built.
42 is the leading AI Market Intelligence provider and maintains one of the largest databases of AI companies and related information, covering everyone from start-up, late stage, pre-unicorns, unicorns to public listed companies.
Access to the database is provided with the AI Analyst™, an AI Market Intelligence Platform for Venture Capital firms, Private Equity companies, asset managers, analysts, family offices or financial institutions. This data, analytics and expert scoring is used by clients to identify, prioritize and nurture opportunities, to see fast-growing markets and industries before others to inform strategic decisions or to pinpoint fast-growing public companies to understand their strengths in AI, products and technology.