How to create a new business with AI?

The advances in Artificial Intelligence AI, robotics, the internet of things, autonomous vehicles, 3D printing, nanotechnology, biotechnology, materials science, energy storage, quantum computing and others are redefining industries, blurring traditional boundaries, and creating new opportunities. We have dubbed this the Fourth Industrial Revolution, and it is fundamentally changing the way we live, work and relate to one another.

Artificial intelligence is about to sweep massively in companies because it is a major element of digital transformation.

Automation of low value-added tasks, the reinvention of customer relations, customization of offers, pricing modeling …, fields of application are vast and all companies are potentially concerned.

Why launch an AI business?

Mid-size companies and large groups all benefit from taking advantage of the opportunities offered by the AI to optimize their processes and transform the experience offered to their clients.

However, the launch of new activities based on AI is complementary to these transformation actions. This puts the company in a position to seize disruption opportunities brought by the AI and preempt related activities or sectors.

On this starting line, in competition with new entrants, established companies benefit from:

• Legitimacy on the job.
• Experienced team.
• Accumulated data for many years in most cases.

How to start an AI business?

To schematize, an AI business is based on 3 main pillars:

• Source data.
• A business approach that nourishes the problem to be solved and therefore the value of the service provided.
• A technological capacity.

To establish the necessary technological infrastructure, established companies have several possible options:

• Lead an R&D program and develop a clean technology.
• Rely on existing technology and available on demand from giants of tech (IBM, Amazon, Google …).
• Acquire a start-up to accelerate the time-to-market.

An example of the Last option by MasterCard, which announced in June 2018 the launch of AI Express, a service package in the field of securing financial flows and preventing fraud. AI Express was built following the acquisition of the startup Brighterion in July 2017.

Another recent example is the Swiss services giant ABB, which is looking for acquisitions in the field of artificial intelligence to diversify its business portfolio.

In this way, they will be able to profit from a maximum leverage effect by playing the pass of two:

• Integrate the AI in their process and their offer in order to sustainably maintain their competitiveness.
• Launch new AI-based businesses and pre-empt new value creation fields.

                                                                                                                                                                              Peter S.