AI Committee

The Keiretsu Forum AI Special Interest Group is open to all Keiretsu Forum members regardless of geography. All members of the committee are encouraged to nominate interesting new companies into the K4 AI SiG screening committee. The meeting are held monthly and Zoom credential will be provided to all interested. We welcome your participation.

The world is changing at an unprecedented pace. Artificial intelligence has driven much of the changes we see ahead of us in the 21st century. Like with all disruptive times there are both massive opportunities created for investors but also massive pitfalls. Seemingly all things software are suddenly AI thus capitalizing on the all too frequent hype cycle that is an unfortunate fundamental part of the innovation landscape; however, the activity is difficult to ignore:

While some recent developments in AI and machine learning are leading to blockbuster innovations which are revolutionizing and disrupting a broad class of industries, there are many investment opportunities out there touting capabilities that are simple not true.

However, the opportunity is impossible for the innovation investor to ignore. According to Stanford’s 2019 AI Index there are implications that cannot be ignored for the global economy:

  • In the US, the share of jobs in AI-related topics increased from 0.26% of total jobs posted in 2010 to 1.32% in October 2019, with the highest share in Machine Learning (0.51% of total jobs). AI labor demand is growing especially in high-tech services and the manufacturing sector.
  • In 2019, global private AI investment was over $70B, with AI-related startup investments over $37B, M&A $34B, IPOs $5B, and Minority Stake valued around $2B.
  • Globally, investment in AI startups continues its steady ascent. From a total of $1.3B raised in 2010 to over $40.4B in 2018 (with $37.4B in 2019 as of November 4th), funding has increased at an average annual growth rate of over 48%.
  • Autonomous Vehicles (AVs) received the largest share of global investment over the last year with $7.7B (9.9% of the total), followed by Drug, Cancer and Therapy ($4.7B, 6.1%), Facial Recognition ($4.7B, 6.0%), Video Content ($3.6B, 4.5%), and Fraud Detection and Finance ($3.1B, 3.9%).
  • 58% of large companies surveyed report adopting AI in at least one function or business unit in 2019, up from 47% from the year before.

Overall there has been a 14X increase in the number of active AI startups from 2000 to 2018.

It is easy to think of AI as a technology competition between the US and China but the growth is far more widespread than that. Singapore, Brazil, Australia, Canada and India experienced the fastest growth in AI hiring from 2015 to 2019.

According to MIT’s Sloan Management Review 2018: “58% of all organizations foresee modifications to their business models due to AI within five years.”

Keiretsu Forum has as a result decided to take a proactive step forward in support of the innovation investor by forming the AI Special Interest Group. This is a group of like interested individuals who would like to gain early investment access to these early stage companies. The committee consists of investors from a variety of backgrounds in technology including AI/ML, entrepreneurism, and early stage investment. Using the broad range of backgrounds represented in this group we are able to source, vet, mentor, and invest into the very best of these companies. Our belief is that as a team of experienced technologists and investors we can maximize our gains while at the same time helping to shape important new disruptive technologies.

The Keiretsu Forum AI Special Interest Group is open to all Keiretsu Forum members regardless of geography. All members of the committee are encouraged to nominate interesting new companies into the K4 AI SiG screening committee. The meeting are held monthly and Zoom credential will be provided to all interested. We welcome your participation.

For more information or to be included in the invitations for future AI SIG meetings please feel free to reach out to:

Armando Viteri

Armando5@earthlink.net

+1 480 797 2970