Failure to Launch
“Failure to Launch”– a cartoon that illustrates why investors and business customers often misunderstand AI technology and make incorrect assumptions about it’s potential to add value.
For the last decade, enterprise AI has seen an explosion in investment – with over $28Bn in 2021 alone.
The basis for this was that enterprise AI companies are similar to enterprise SaaS products, and once the minimum viable product is created it is just a matter of scale.
However, AI does not always work like that – in fact a minimum viable product with a subset of data, might not at all reflect what an algorithm can develop once there are larger, messier datasets.
Therefore, neither a MVP for an investor nor a product pilot for a potential customer are really good indicators of an AI company’s technology to provide value.
In fact this has been proven out, according to a study by MIT/BCG in late 2020, only 10% of enterprises get any value from AI projects.
