Artificial intelligence (AI) was once a subject of people’s imaginations and could only be profound in science fiction movies for decades. This is no longer the case, as AI is slowly becoming commonplace in people’s lives, whether they realize it or not. AI’s growing presence can be noticed in applications ranging from heavy-duty to education. It is now a tool being used to streamline operations, inform better decisions, and revolutionize how everyday businesses operate.
Artificial intelligence is a machine or computer’s ability to mimic the human mind’s competencies, often learned from previous experiences, to understand and respond to the language, decisions, and problems.
While AI is a rapidly growing industry, it takes a lot of data and resources to push it forward and allow for new applications and technology. Despite this, AI startups seem to have unique and unusual advantages over more giant corporations, and here is how:
The big tech advantage.
Big Tech corporations are expanding the horizons of artificial intelligence and what it can do in areas of natural language processing, image recognition, and more. Many big firms are allocating more capital as they race to build on AI capabilities.
The AI technology provides a competitive edge to the big tech giants as they are a great inspiration for all other companies who wish to tap into the AI potential to outperform their normal functions.
Big tech giants who adopted AI technology like Google, Amazon, and Microsoft enjoy the bottom-line benefits from the artificial intelligence strategies. As AI popularity continues to grow and as it becomes the spotlight of the decade, big tech companies now consider the AI strategy to be the most effective in achieving business growth and transformation.
As the advancement in artificial intelligence continues to attract more businesses, you can tap into its potential by becoming more ambitious in automating your business processes, differentiating your product offerings, and transforming the customer experience.
The upper hand of startups.
While it may feel OK to say AI works best for large corporations, we cannot ignore the fact that AI technology also presents unique advantages to startups over giant corporations.
In fact, artificial intelligence gurus are now leaving big tech giants like Google, Open AI, Meta, and Deep Mind to join a new breed of startups looking to propel AI to the next level.
Small startups now have an AI strategy advantage over larger corporations because they are smaller and can easily focus on pushing and producing smaller applications that are valued in a young industry like Robotics and AI.
To run a startup company, you must build on your products and services using new architecture, which sets rules and methods to describe their functionality, organization, and implementation. As an AI startup, you can compete with giants without enormous datasets. Startups developing commercial AI applications work in a competitive market.
Knocking down barriers.
Competing with available data and the need to meet the growing market needs may bring up barriers to market entry for some industries, but that doesn’t stop the spirit of developing AI solutions for midsize companies, to later compete with larger corporations.
To help you capitalize on the need for more and smaller AI applications, first, determine what industries need these applications and identify the gap of how tech giants are unable to meet the needs quickly.
Large corporations must invest more time and money in a large-scale project to meet consumer AI needs. But since you can use various ways to market your AI projects to clients that are not a big target, you can be sure to make good profits.
As a small tech company, you can market through trade shows or roll out company merchandise like a drawstring bag, pens, water bottles, and tote bags, among others. Such promotions can help you access and reach small-scale clients who require AI solutions in a broader range than what big tech companies could offer.
Challenges in adopting AI among startups.
Despite AI’s great potential, uptake is still lagging behind expectations. According to a McKinsey report, AI adoption is steadily increasing by about 56 percent. Despite this, only 20 percent of the AI-powered companies deploy the technology.
The truth is, AI adoption might not be as straightforward as you think. Limited to poor data is one of the main obstacles to AI adoption, as data available for startups is nothing compared to what big tech giants have. Lack of AI talent and considerable costs to train AI models are also top impediments to AI adoption due to limited resources and capital to manage training and computational costs.