Europe has 2,830 startups classified as artificial intelligence (AI) firms, however, less than 1,600 fully meet the characteristics and standards of such innovative businesses, Forbes reported, citing the author of a new report on European startups.
Almost half of all start-ups in Europe that classify themselves as AI companies do not implement the AI in its business practices to the required extent, a new report by a British venture capital firm, MMC, stated.
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David Kelnar, head of research for MMC, commented on the recent study saying that “in 40% of cases we could find no mention of evidence of AI” after careful examination of these firms’ materials, products, websites and documents.
He also noted that startups that label themselves as AI firms get up to 50% more investment in comparison with other tech business initiatives.
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