Lately, Big Tech has been facing major challenges. Last year, technology stocks fell more than 30%, more than the stock market’s overall decline of 20%. Unfortunately, the consequences of this decline are being felt nationwide.
As more and more companies are affected by data privacy concerns, antitrust rules and other regulatory oversight, companies (especially startups) need to take proactive steps to stay on top and move forward. One of the most beneficial steps companies can take is to implement artificial intelligence.
The benefits of using AI technology to drive startup growth
Damian Mingle, president and CEO of LogicPlum, a machine learning platform that builds and co-manages custom AI applications that fit businesses’ needs, budgets and timelines, says there are several ways to use AI when it comes to increasing business success. “An easy way to use AI in your startup is to think about the first eight positions you will be hiring for,” he suggests. “They are chief executive officer, product manager, chief technology officer, chief marketing officer, sales manager, chief financial officer, business development manager, and customer service representative.”
Mingle recommends thinking about ways these roles can benefit from AI technology. “My general philosophy in business is to go as far as possible with technology, and then layer people where necessary,” he explains.
For example, a CEO could benefit from an AI model that helps them identify trends and patterns in the organization, make predictions about what might happen in the future, and pinpoint areas that need more attention to maximize performance. Mingle said. “CEOs of startup companies should love the idea of making informed decisions about the company’s direction and how best to manage resources,” he says.
Another example, Mingle explains that an AI model that could help product managers is one that can analyze customer behavior and help make decisions about product features, pricing, and marketing campaigns.
Of course, there are several large tech companies that have already turned to AI technology and machine learning to help automate their processes and reduce losses. They also use this technology to free up resources and become more efficient.
Mingle believes that Dropbox is one of the most notable companies using AI technology. “The company used AI and ML to develop a feature that automatically detects duplicate images and low-resolution images, saving storage space,” he explains. “This allowed Dropbox to streamline its storage and increase efficiency for users.”
Common challenges startups face when implementing AI
While AI has a plethora of benefits and use cases, it also poses challenges.
One of the biggest problems Mingle sees with startups is a lack of available data to effectively train their AI models. “To counter this, they can use data augmentation techniques, access open-source datasets, or partner with AI companies to generate synthetic data.”
The cost of implementing AI technology is another challenge. Mingle recommends opting for cost-effective cloud-based AI solutions (no hardware costs!)
An additional problem can arise with compliance and trust. Mingle says startups can ensure their AI solutions comply with relevant laws and regulations by partnering with legal experts and AI experts with a reputation for aiding compliance and eliminating the bias inherent in most facts. “Startups need to prioritize transparency, explainability, and fairness when building their AI systems,” he explains. “Doing this will bring a new level of confidence within your startup with AI.”
How to identify the right AI technologies for your business
After looking at the benefits and challenges of AI, there are a few more factors to consider before implementing AI in your startup. Mingle’s business framework can help determine which type of AI technology is best for your business:
· beliefs: Determine what problems the AI can help you solve and what goals it can help you achieve. What is your desired result?
· Research: Do your research on the types of AI technology out there — Mingle recommends focusing on the proven use cases — and determine which one is most likely to help you achieve your goals.
· Zone: Focus on the resources needed to implement the technology. Is the AI cost-effective?
· Breakthrough: Consider the return on investment of the AI. Mingle says it’s important to weigh the time and effort required to learn and implement the technology, as well as the cost of maintaining it.
· driveway: Look at the scalability of the AI to ensure it grows with your business.
· Shield: Don’t forget about security; the technology must have protocols to keep your data safe.
· Inventory: Consider the training, support, and resources available to use the AI effectively.
· Navigate: Determine the impact the technology will have on your team’s workload. Does it mean extra work?
With Mingle’s framework, you can rest easy knowing you made the right choice for AI and reap the many benefits – from increasing automation of everyday tasks, improved data analysis and improved customer service, to reducing costs and providing better access to personalized learning opportunities.
Intelligently leveraging both the positive and negative future consequences of AI’s impact on the startup ecosystem, Mingle claims entrepreneurs have great opportunities to take advantage of it.