As the dust settles on the tumultuous year that was 2023 for artificial intelligence startups, investors are already looking ahead to what 2024 has in store. While the future remains uncertain, TechCrunch+ recently surveyed over 40 investors to gain insight into their predictions for AI investing in the upcoming year.
While most investors believe that the current surge in funding will continue, they are also cautiously optimistic that the industry is evolving beyond its initial hype phase. The focus is shifting towards building more sustainable and durable businesses within the AI space. Furthermore, investors anticipate a potential second wave of AI startups in 2024 that will be more specialized and focused on specific sectors. These startups will move away from simply building on existing technologies from giants like OpenAI and Google, and instead develop their own tailored solutions.
One notable trend that investors are expecting is the rise of verticalized AI startups. According to Lisa Wu, a partner at Norwest Venture Partners, these startups will be particularly attractive investment opportunities this year. Verticalized AI refers to applications that have a deep understanding of end-user workflows and access to industry-specific training data. By leveraging AI technology, these startups aim to make employees and teams more productive in specific industries.
Wu highlights the potential advantages of investing in verticalized AI startups, citing lower replication risk compared to legacy companies like Microsoft and Google. These startups provide specialized solutions that are not easily replicated, allowing them to offer services at a lower cost, with higher efficiency and increased chances of favorable outcomes in fields such as law.
As the AI landscape continues to evolve, investors are keeping a close eye on verticalized AI startups in 2024. The potential for specialized solutions and a move away from reliance on existing technologies suggests an exciting future for the industry.
The source of the article is from the blog be3.sk