{"id":2542694,"date":"2023-05-20T07:00:44","date_gmt":"2023-05-20T11:00:44","guid":{"rendered":"https:\/\/platoai.gbaglobal.org\/platowire\/the-current-state-of-ai-focused-startups-in-the-public-market-a-lack-of-popularity\/"},"modified":"2023-05-20T07:00:44","modified_gmt":"2023-05-20T11:00:44","slug":"the-current-state-of-ai-focused-startups-in-the-public-market-a-lack-of-popularity","status":"publish","type":"platowire","link":"https:\/\/platoai.gbaglobal.org\/platowire\/the-current-state-of-ai-focused-startups-in-the-public-market-a-lack-of-popularity\/","title":{"rendered":"The Current State of AI-Focused Startups in the Public Market: A Lack of Popularity"},"content":{"rendered":"

Artificial intelligence (AI) has been a buzzword in the tech industry for years, with many startups focusing on developing AI-powered products and services. However, when it comes to the public market, AI-focused startups have not gained as much popularity as one might expect.<\/p>\n

According to a report by CB Insights, only 1% of all IPOs in 2020 were from AI-focused companies. This is despite the fact that AI is expected to have a significant impact on various industries, including healthcare, finance, and transportation.<\/p>\n

One reason for the lack of popularity of AI-focused startups in the public market could be the high level of competition. Many established tech companies, such as Google and Microsoft, have already invested heavily in AI research and development. This makes it difficult for smaller startups to compete and gain market share.<\/p>\n

Another factor could be the complexity of AI technology. Many investors may not fully understand the technology behind AI and may be hesitant to invest in companies that they perceive as risky or difficult to understand.<\/p>\n

Additionally, there may be concerns about the ethical implications of AI. As AI becomes more advanced, there are concerns about job displacement and the potential for bias in decision-making algorithms. These concerns may make investors hesitant to invest in AI-focused startups.<\/p>\n

Despite these challenges, there are still some AI-focused startups that have successfully gone public. One example is UiPath, a robotic process automation company that went public in April 2021 and raised $1.3 billion in its IPO. Another example is C3.ai, an enterprise AI software company that went public in December 2020 and raised $651 million in its IPO.<\/p>\n

Overall, while AI-focused startups may not be as popular in the public market as some may expect, there are still opportunities for these companies to succeed. As AI technology continues to advance and become more widely adopted, it is likely that we will see more AI-focused startups going public in the future.<\/p>\n