Artificial intelligence is one of the hottest and most promising technology fields today, and it is changing the development and future of various industries and fields. With the continuous advancement and popularization of artificial intelligence technology, more and more entrepreneurs and investors have seen the huge opportunities and potential of artificial intelligence entrepreneurship and have flocked to this field, hoping to seize this historic opportunity and create influential and valuable products or services.
However, not all AI startups are successful. Some projects may not be real opportunities at all, but rather directions that seem valuable but are difficult to achieve or unsuitable for entrepreneurs. These fake opportunities may put entrepreneurs in trouble, waste time and resources, and even lead to failure. Therefore, for entrepreneurs who want to enter the field of AI entrepreneurship, it is very important and necessary to distinguish between real and fake opportunities and choose the right direction and strategy.
This article will analyze the true and false opportunities in artificial intelligence entrepreneurship from the following aspects:
The current status of big models and AI applications
AI StartupsThose false opportunities
The real opportunities in AI startups
Business rules to follow in AI startups
Summary and suggestions
01 Current Status of Big Models and AI Applications
In the field of artificial intelligence, there are two types of projects that can be summarized as big models and applications. Big models refer to those that use a large amount of data and computing resources to build artificial intelligence models with powerful capabilities and universality, such as GPT-4, DALL-E, CLIP, etc. Applications refer to those that use artificial intelligence technology to provide innovative products or services for specific fields or scenarios, such as medical diagnosis, supply chain management, personalized education, etc.
Judging from the current status of AI startup projects, large models and applications have their own advantages and challenges. Large models have huge market potential and value, can be applied to multiple fields and scenarios, and can also become a new computing platform or entry point. However, large models also require a large amount of capital investment and high-level technical support, and need to face fierce market competition and uncertain risks. Therefore, large models are more suitable for those who have sufficient financial resources and technical strength, can bear the high cost of development and operation and maintenance, and have the ability to obtain and process large-scale data.
Applications have clearer user and market needs, can solve specific industry pain points or user problems, and can also form their own core competitiveness or differentiated advantages. However, applications also need to combine specific industry knowledge and user insights, and need to continuously improve and innovate products or services. Therefore, applications are more suitable for those who have clear goals and directions and can use existing artificial intelligence platforms or technologies to develop their own applications or ecosystems.
02 Fake opportunities in AI startups
In AI startups, some opportunities seem valuable, but are actually false opportunities, that is, those that are difficult to achieve or not suitable for entrepreneurs. These false opportunities may lead entrepreneurs astray, waste time and resources, and even lead to failure. Common false opportunities in AI startups include the following:
1. Package value
This type of opportunity refers to those algorithms that can only serve as a link in the supply chain, have no pricing power, and are easily commoditized or self-developed. For example, acoustic microphone array algorithms, perceptual speech recognition algorithms, etc. This type of opportunity is not suitable for entrepreneurs because their use value and financial value do not match, and it is difficult to form their own brand and barriers.
Mismatch between use value and financial value: Although this type of opportunity can improve product performance and quality, it cannot be directly reflected in the price of the product. This is because the price of the product is also affected by many factors such as market competition, consumer demand, and cost. Therefore, the benefits of this type of opportunity are often very low, and there is even the possibility of loss.
No pricing power: This type of opportunity cannot independently determine its own price, but is subject to upstream and downstream constraints. For example, if the cost of upstream raw materials or technology rises, then this type of opportunity must bear the cost pressure; if the price of downstream products falls or demand decreases, then this type of opportunity must reduce its own price or output.
It is difficult to form your own brand and barriers: This type of opportunity makes it difficult for users or customers to recognize and trust your own technology or products, and it is easy to be imitated or replaced by other competitors. For example, the microphone array algorithm of acoustics may be replaced by other more advanced or cheaper algorithms; or it may be developed or built-in by downstream product manufacturers.
2. The upper limit of water temperature is 90 degrees
This type of opportunity refers to products whose technology ceiling is lower than expected and cannot become new entry points or general platforms. For example, smart speakers. This type of opportunity is not suitable for entrepreneurs because their use value has a ceiling and requires heavy investment and competition.
Use value has a ceiling: Although such opportunities can solve some specific problems or scenarios, they cannot create more value or functions, nor can they lead new trends or changes. For example, although smart speakers can provide users with a convenient and interesting experience, they cannot replace traditional computers or mobile phones, nor can they meet the diverse and personalized needs of users.
Requires heavy investment and competition: Such opportunities require entrepreneurs to invest a lot of money, manpower, time and other resources to improve product performance, stability, compatibility and other aspects, and also face fierce competition from giants or other entrepreneurs.
3. Management and operation are the most important
This type of opportunity refers to products or services that require sophisticated management and operation rather than technology-driven, such as project-based and long-chain operations. This type of opportunity is not suitable for entrepreneurs because their use value realization costs are high and require a high level of organization and mechanism construction.
The cost of realizing use value is very high: Although such opportunities can provide customers with certain products or services, they require a large amount of human, material, financial and other resources to maintain smooth and stable operations. For example, the project system requires the establishment of a dedicated project team to conduct cross-departmental collaboration and communication and manage complex project resources and risks; long-chain operations require coordination and communication between multiple links and participants to ensure operational efficiency and quality.
High-level organization and mechanism construction is required: This type of opportunity requires entrepreneurs to have strong management and leadership capabilities, be able to establish effective organizational structures and processes, formulate reasonable rules and systems, and coordinate the relationships and interests between various links and departments. For example, the project system requires the establishment of a professional project management system, the formulation of clear project goals, schedules, budgets and quality requirements; long-chain operation requires the establishment of a stable supply chain partnership and the formulation of reasonable division of labor, allocation, and profit sharing.
Lack of driving force of technological innovation or market demand: It is difficult for such opportunities to form their own core competitiveness or differentiated advantages, and they are easily imitated or replaced by other competitors. For example, the project system may be replaced by other more flexible or more efficient organizational forms; long-chain operation may be replaced by other simpler or faster operating models.
4. Capital-intensive games
This type of opportunity refers to those complexes that require large capital and high-end technology, such as large models. This type of opportunity is not suitable for entrepreneurs because their threshold is too high and it is a game of big wins and big losses.
The threshold is too high: Such opportunities require entrepreneurs to have sufficient financial resources and technical strength, to be able to bear the high costs of development and operation, and to be able to obtain and process large-scale data. For example, large models require a large amount of data and computing resources, as well as high-level algorithms and engineers.
Big win, big lose game: Although this type of opportunity has huge market potential and value, it also faces huge uncertainties and risks, such as technological changes, policy supervision, user demand, etc. Once it fails, it may cause huge losses. For example, the large model may be replaced by other more advanced or cheaper models; or it may be banned or restricted by the government or society.
5. Concepts that cannot be implemented
This type of opportunity refers to ideas that are only theoretically feasible but encounter various obstacles or difficulties in practical application. For example, face recognition payment, demand analysis, smart medical care, etc. This type of opportunity is not suitable for entrepreneurs because their use value and market demand are unclear and they face legal, ethical, and security risks.
Unclear use value and market demand: Although such opportunities seem creative and forward-looking, they have not been fully verified and tested, and there are no clear target users and scenarios, nor reliable data and evidence. For example, although facial recognition payment can improve the convenience and security of payment, it does not take into account the privacy and preferences of users, nor the stability and compatibility of payment; although demand analysis can improve user satisfaction and loyalty, it does not take into account the complexity and diversity of users, nor the subjectivity and variability of demand; although smart medical care can improve the accuracy and efficiency of medical care, it does not take into account the professionalism and responsibility of medical care, nor the standardization and legality of medical care.
Facing legal, ethical, and security risks: Such opportunities may touch upon some sensitive or controversial issues in actual application, such as privacy, rights, ethics, and trust, which may cause opposition or resistance from users or society, and may also be sanctioned or restricted by the government or law. For example, facial recognition payment may lead to the leakage or abuse of users' personal information, or payment failure or fraud; smart medical care may lead to medical errors or mistakes, or unfair or unreasonable medical care.
6. Unprofitable Model
This type of opportunity refers to products or services that have a certain user base and traffic but no clear business model or revenue source. For example, chatbots, intelligent question and answer, content generation, etc. This type of opportunity is not suitable for entrepreneurs because they have weak financial value and sustainability, and are easily surpassed or replaced by competitors or giants.
Weak financial value and sustainability: Although such opportunities can attract some users and traffic, they cannot be converted into actual revenue or profit. This is because they do not have a clear business model or revenue source, nor do they have effective profit-making methods or channels. For example, although chatbots can have interesting conversations with users, they cannot provide users with valuable services or products, nor can they obtain any benefits from users; although intelligent Q&A can provide users with useful information or knowledge, it cannot provide users with in-depth analysis or suggestions, nor can it obtain any benefits from users; although content generation can provide users with creative content or works, it cannot provide users with quality content or works, nor can it obtain any benefits from users.
Easily surpassed or replaced by competitors or giants: This type of opportunity has no obvious advantages or barriers in the market and can be easily imitated or replaced by other competitors. For example, chatbots may be replaced by other smarter or more interesting robots; intelligent Q&A may be replaced by other more accurate or comprehensive answers or search engines; content generation may be replaced by other higher-quality or more original content or works. In addition, this type of opportunity may also be surpassed or replaced by giants or platforms. For example, chatbots may be surpassed or replaced by social platforms such as WeChat and QQ; intelligent Q&A may be surpassed or replaced by search engines or Q&A platforms such as Baidu and Zhihu; content generation may be surpassed or replaced by video platforms or content platforms such as Douyin and Kuaishou.
03 The real opportunities in AI entrepreneurship
In AI entrepreneurship, some opportunities are real opportunities, that is, those that can use artificial intelligence technology to provide innovative products or services for specific fields or scenarios, meet the core needs of users, and create obvious value and advantages. These real opportunities may enable entrepreneurs to succeed and realize their visions and goals. Common real opportunities in AI entrepreneurship include the following:
1. Solve specific industry pain points or user needs based on artificial intelligence technology
This type of opportunity refers to those that can use artificial intelligence technology to provide innovative products or services for specific fields or scenarios, meet the core needs of users, and create obvious value and advantages. This type of opportunity can help traditional industries complete digital transformation, and can also meet the core needs of users and form their own core competitiveness and differentiated advantages. For example:
Using AI technology to improve the accuracy and efficiency of medical diagnosis: This type of opportunity can use AI technology to analyze and identify medical images, genes, medical records and other data, provide more accurate and faster diagnosis results and treatment recommendations, reduce the risk of medical errors and delays, and improve medical quality and efficiency. Arterys is a platform that uses deep learning technology to analyze and diagnose medical images, which can help doctors diagnose heart disease, tumors, lung diseases, etc.
Using AI technology to optimize supply chain management and manufacturing production: This type of opportunity can use AI technology to predict and optimize each link in the supply chain, improve the transparency and efficiency of the supply chain, reduce the cost and risk of the supply chain, and improve the quality and output of the manufacturing industry. ClearMetal is a platform that uses machine learning technology to predict and optimize global trade logistics, which can help freight companies, ports, shipping companies, etc. improve transportation efficiency and customer satisfaction.
Using AI technology to improve personalized education and financial services: This type of opportunity can use AI technology to analyze and recommend users' learning or financial status, provide more personalized and appropriate education or financial solutions, and improve users' learning or financial results and experience. Knewton is a platform that uses adaptive learning technology to provide users with personalized educational content and feedback, which can help users improve their learning efficiency and grades; Wealthfront is a platform that uses machine learning technology to provide users with personalized financial planning and investment management, which can help users achieve their financial goals and financial dreams.
2. Build your own application or ecosystem based on the artificial intelligence platform
This type of opportunity refers to those who can use existing artificial intelligence platforms, such as Baidu, Tencent, Alibaba, etc., to develop their own applications or ecosystems, enjoy the data, algorithms, resources and other support provided by the platform, and form their own core competitiveness and differentiated advantages. This type of opportunity can reduce their own technical barriers and costs, and can also use the platform's traffic and users to quickly expand their market size and influence. For example:
Baidu's open driverless platform to develop your own smart car: This type of opportunity can use Baidu's open driverless platform Baidu Apollo to develop your own smart car products or services, enjoy the data, algorithms, resources and other support provided by Baidu, and form your own core competitiveness and differentiated advantages. For example, Xiaopeng Motors is a company that uses Baidu's Apollo platform to develop its own smart car brand, which can provide users with a variety of functions such as smart driving, smart travel, and smart life.
Tencent's open chatbot platform to develop your own intelligent customer service: This type of opportunity can use Tencent's open chatbot platform Tencent AI Lab to develop your own intelligent customer service products or services, enjoy the data, algorithms, resources and other support provided by Tencent, and form your own core competitiveness and differentiated advantages. For example, Xiaowei Customer Service is a company that uses the Tencent AI Lab platform to develop its own intelligent customer service solutions, which can provide users with intelligent question and answer, intelligent transfer, intelligent analysis and other functions.
Alibaba's open e-commerce platform to develop its own intelligent recommendation system: This type of opportunity can use Alibaba's open e-commerce platform Taobao to develop its own intelligent recommendation system products or services, enjoy the data, algorithms, resources and other support provided by Alibaba, and form its own core competitiveness and differentiated advantages. For example, Qianxun Recommendation is a company that uses the Taobao platform to develop its own intelligent recommendation engine, which can provide users with personalized, real-time and dynamic product recommendations.
3. Explore new application scenarios and market space based on IoT and AI technologies
This type of opportunity refers to those that can combine the Internet of Things and artificial intelligence technologies to give various objects and devices intelligent functions and expand new application scenarios and market space. This type of opportunity can provide users with a more convenient and interesting experience, and can also create new user needs and value. For example:
Using IoT and AI technologies to realize smart home: This type of opportunity can use IoT and AI technologies to realize the functions of smart home, interact with users through voice, gestures, facial expressions, etc., and control various devices and services in the home, such as lighting, temperature, music, security, etc. For example, [Voxel] is a company that uses IoT and AI technologies to realize smart home, which can provide users with multiple functions such as smart driving, smart travel, and smart life.
Wearable devices using IoT and AI technologies: This type of opportunity can use IoT and AI technologies to give various wearable devices intelligent functions, collect and analyze users' physical and environmental data through sensors, cameras, microphones, etc., and provide more personalized and useful information and services, such as health monitoring, exercise guidance, entertainment interaction, etc. For example, [Fitbit] is a company that uses IoT and AI technologies to realize wearable devices, which can provide users with health tracking, exercise advice, sleep analysis and other functions.
Using IoT and AI technologies to realize the agricultural IoT: This type of opportunity can use IoT and AI technologies to provide intelligent solutions for the agricultural sector, collect and analyze farmland and crop data through drones, satellites, sensors, etc., and provide more accurate and efficient agricultural management and production, such as irrigation control, pest and disease warning, harvest optimization, etc. For example, The Climate Corporation is a company that uses IoT and AI technologies to realize the agricultural IoT, and can provide users with a variety of services such as agricultural data analysis, agricultural insurance, and agricultural consulting.
04 Business rules to follow in AI startups
In AI startups, in addition to following some general business rules, such as market demand, user experience, product quality, profit model, etc., you must also follow some special business rules in the AI industry, such as data security, algorithm transparency, social responsibility, etc. The following are some business rules that must be followed in AI startups and special business rules in the AI industry.
The core value proposition of an AI startup project: that is, what kind of products or services the AI startup project can provide to users or customers, what kind of problems or needs it can solve, and what kind of value or advantages it can create. This is the basis and premise for evaluating AI startup projects, and it is also the key to attracting users or customers. For example, Paige is a software company that uses artificial intelligence technology to improve the accuracy and efficiency of medical diagnosis. Its core value proposition is to help doctors diagnose cancer.
The market size and potential of AI startup projects: that is, how big the target market is, how many potential users or customers there are, how many unmet or inefficiently met needs there are, and how much revenue or profit there is. This is an important and necessary condition for evaluating AI startup projects, and it is also an important indicator for measuring the success of AI startup projects. For example, ClearMetal is a software company that uses artificial intelligence technology to optimize supply chain management and manufacturing production. Its target market is the global trade logistics industry, which has an annual revenue of more than $10 trillion.
Competitive advantages and barriers of AI startups: what advantages or features do AI startups have compared to other competitors or substitutes, what unique or high-quality products or services can they provide, and what moats or hard-to-copy resources or capabilities can they form. This is the key and difficulty in evaluating AI startups, and it is also the core factor in maintaining the long-term development and leading position of AI startups. For example, Knewton is a software company that uses artificial intelligence technology to provide personalized educational content and feedback. Its competitive advantage is that it has adaptive learning technology and massive educational data.
Risks and challenges of AI startup projects: that is, what difficulties or obstacles AI startup projects may encounter in the process of realizing their commercial value, what problems or crises they need to overcome or solve, and what changes or uncertainties they need to deal with or adapt to. This is a realistic and necessary part of evaluating AI startup projects, and it is also an important way to improve the stress resistance and adaptability of AI startup projects. For example, Voxel is a software company that uses IoT and AI technologies to realize smart homes. Its risks and challenges include user privacy protection, device compatibility, policy supervision, etc.
05 Summary and Suggestions
This article analyzes the true and false opportunities in AI entrepreneurship from the following aspects, briefly analyzes the current status of AI entrepreneurial projects from the perspective of large models and applications, and points out their respective advantages and challenges. It analyzes the false opportunities in AI entrepreneurship and gives examples, points out why they are not suitable for entrepreneurs, and what problems and risks they have. It analyzes the real opportunities in AI entrepreneurship and gives examples, points out why they are suitable for entrepreneurs, and what values and advantages they have. It summarizes the business rules that must be followed in AI entrepreneurship and the special business rules of the AI industry, and points out their importance and necessity for AI entrepreneurship.
Finally, based on the analysis of this article, we offer the following suggestions to AI entrepreneurs:
AI entrepreneurs must have clear goals and directions, choose real opportunities that match their abilities and resources, and avoid falling into the trap of false opportunities.
AI entrepreneurs must conduct sufficient verification and testing to ensure that their products or services can meet the core needs of users and create obvious value and advantages.
AI entrepreneurs must continuously improve and innovate to ensure that their products or services can adapt to market changes and form their own core competitiveness and differentiated advantages.
AI entrepreneurs must have a sense of responsibility and conscience to ensure that their products or services comply with laws and regulations, protect data and algorithms, and benefit society.