Artificial Intelligence Classification Matrix: A Framework to Classify AI Startups

By January 12, 2017iot

All the problems discussed in the previous posts can create two major cross-sectional problems: the likely event to run out of money before hitting relevant milestones toward the next investment, as well as whether pursuing specific business applications to break even instead of focusing on product development.

In terms instead of classifying different companies operating in the space, there might be several different ways to think around machine intelligence startups (e.g., the classification proposed by Bloomberg Beta investor Shivon Zilis in 2015 is very accurate and useful for this purpose). I believe though that a too narrow framework might be counterproductive given the flexibility of the sector and the facility of transitioning from one group to another, and so I preferred to create a four-major-clusters categorization:

i) Academic spin-offs: these are the more long-term research-oriented companies, which tackle problems hard to break. The teams are usually really experienced, and they are the real innovators who make breakthroughs that advance the field;

ii) Data-as-a-service (DaaS): in this group are included companies which collect specific huge datasets, or create new data sources connecting unrelated silos;

iii) Model-as-a-service (MaaS): this seems to be the most widespread class of companies, and it is made of those firms that are commoditizing their …

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