Investing in AI: What to Look Out For and How to Make Big Bucks!
AI has become the hottest buzzword in the tech world, and investors are getting in on the action. Despite the current economic challenges, venture capitalists and other investors are pouring big bucks into AI technology, particularly generative AI, also known as GenAI. According to research from Goldman Sachs, global investment in AI technology is set to hit $200 billion by 2025. But with so many startups in the AI space, investors need to be cautious about which companies to support.
Glasswing Ventures founder and managing partner, Rudina Seseri, has been investing in AI technology since 2010. She knows what it takes to make a sound investment in this rapidly changing field. In a recent interview, Seseri shares her investment criteria and offers insights into the future of AI.
One of the key changes Seseri has observed in AI is the rise of generative AI. This technology, which gained traction in 2017 with the emergence of transformers, has revolutionized the industry. However, as with any hype cycle, Seseri warns of a coming “trough of disillusionment” where poorly constructed AI models and applications will disappoint investors. But she remains optimistic about the long-term adoption of AI in the enterprise space.
When it comes to investing, Seseri looks for exceptional teams, unique and differentiated models, and access to proprietary data. She also emphasizes the importance of AI being indispensable for solving a problem. If a problem can be solved without AI, there’s no point in using it. Additionally, she advises startups to focus on developing the right AI Minimum Viable Product (MVP), which should provide enough value to customers from day one, even if it’s not fully trained.
In terms of longevity, execution is key. Founders need to demonstrate that they can not only innovate but also build a sustainable business. Companies that solve big problems with a large market opportunity have the potential to go the distance.
Seseri also addresses the security and privacy concerns associated with generative AI. She emphasizes the importance of implementing guardrails and developing tools to ensure compliance with privacy regulations. While some applications of AI, such as individual facial recognition, may be off-limits for investors, there are companies working on solutions to address privacy and security concerns.
So, if you’re looking to invest in AI, be sure to consider these key factors. Do your research, look for exceptional teams and unique models, and make sure AI is truly indispensable for solving a problem. And don’t forget to assess a company’s execution capabilities and their approach to security and privacy. Happy investing!
What do you think of the future of AI investment? Share your thoughts in the comments below!
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