AI Startups: Between Growth and Imminent Collapse

In the current boom of artificial intelligence, numerous startups are experiencing rapid growth, often without solid data-based foundations. Julie Zhuo, former Vice President of Facebook and co-founder of the AI analytics company Sundial, emphasized that many of these companies achieve quick success without having the necessary infrastructure for data analysis. Consequently, some of these firms grow at a breathtaking pace, often with only a few employees, reaching impressive revenue and user numbers. However, Zhuo warns that without a well-thought-out data framework, answers to key business questions might be lacking once growth slows. Traditionally, slower growth allowed companies to build their data teams and establish systems to analyze user behavior more precisely – a development that is often neglected today. Zhuo advocates for using new success metrics in the AI era, particularly for products related to chatbots and conversational interfaces. She proposes innovative analysis methods, such as using machine learning to determine user intentions. Given the immense capital flows currently directed at AI startups, there is growing concern that the current euphoria could end in a bubble, similar to the dot-com crisis of 2000. Highly respected figures like Sam Altman, CEO of OpenAI, express doubts about the mental state of investors and the market valuation of small AI firms. He emphasized the importance of AI as a revolutionary event but warned against an excessive spiral of enthusiasm among investors.