🥪 say "ai" 10 times

If you’re new here, welcome to Zoom Out — where I share my “AHA moments” from client Zoom calls that helped them uncover fresh ideas for growing their companies through technology initiatives.

Now onto this week’s issue…

I swallowed it when they called chatbots #AI.

I tried to ignore it when @BankofAmerica insisted their #Erica was a state-of-the-art AI #assistant (which couldn’t even understand basic phrases).

MMC Ventures (London) studied 2,830 European startups across 13 countries that claimed their products heavily relied on AI and used that narrative to boost sales.

40% of those startups HAD NOTHING TO DO WITH AI WHATSOEVER!

By using “AI” in their marketing, startups are trying to lure investors, positioning themselves at the forefront of tech progress.

Today, 1 out of 12 startups declares itself an AI company.

In 2013, it was 1 out of 50.

And guess what—it’s working!

Since 2015, startups “with AI” have been raising 15-50% more capital than other software startups, with correspondingly higher valuations.

Lawyers report that these startups are scrambling to file countless AI-related patents, yet many of them lack real intellectual value.

What’s concerning is that most fake AI startups target the Healthcare and Wellness industries. (Remember how Elizabeth Holmes gave Walgreens a fake presentation to get Theranos into their stores?)

Most fake AI companies aren’t harmful to our health, but they’re definitely dangerous to our wallets and businesses.⠀

They overheat markets, drive valuations to insane levels, and make VCs and enterprise leaders (who believed the hype) lose astronomical sums of money. 

Which, in turn, slows real innovation down.

After getting burnt once, you’ll think twice the next time someone pitches you a shiny new AI product.

So, if tomorrow someone says “AI” and the next thing you know, you’re calling your CFO—take a deep breath, sip your favorite wine, and pause.

That’s all for this week…but one more thing. If you’re enjoying this, can you do me a favor and forward it to a friend? Thanks.

-Alex

My nimble and super-efficient software consultancy → Techery

Let’s connect on Twitter/X: @pshenianykov

Or on LinkedIn: Alex Pshenianykov

🫠 THIS MADE ME SMILE