Artificial intelligence has quickly transformed industries, revolutionizing our work and lives. In fact, according to a Harvard Business Review report, the global AI market value is projected to reach a value of $267 billion by 2027.
Further, AI-driven solutions gave rise to many innovative startups capitalizing on the data abundance and access to powerful computing resources to develop AI technologies. Here, we will explore some noteworthy AI startups leading the charge in their respective domains.
What are AI startups?
AI startups are innovative organizations that offer products and services in artificial intelligence. They are experts in machine learning, data processing, natural language processing, the Internet of Things, and virtual assistants. These startups have played a role in transforming the utilization of artificial intelligence across multiple industries.
Why are AI Startups important?
1. They invent software that can reduce costs
AI software offers significant cost reduction for companies by automating manual processes to save time and resources while minimizing errors. The continuous learning capability of AI enables businesses to optimize operations more efficiently.
Some of the AI software solutions that can help companies reduce costs include:
- Robotic Process Automation (RPA): RPA software automates repetitive tasks, lessening the need for human intervention and improving efficiency. Examples: Blue Prism, UIpath, and Kryon.
- Predictive Analytics: Predictive analytics software uses statistical models, data analysis, AI, and machine learning algorithms to forecast future trends, enabling companies to make informed decisions and optimize operations. Examples: DataBricks and Tableau.
- Natural Language Processing (NLP): NLP software can automate customer support processes by understanding and responding to customer inquiries, reducing the need for human agents through social media monitoring, spell check, messenger bots, etc. Examples: MonkeyLearn and IBM Watson Assistant
2. They address industry-specific problems
AI startups aim to address intricate issues by utilizing AI technologies to tackle specific challenges across various sectors and identify niche opportunities. These include Vectra.ai for combating cyber attacks, Jupiter Intelligence for climate risk analysis, GoodVision for traffic analysis solutions, and Viz.ai for disease detection and workflow optimization. This diversity within the AI market indicates plenty of opportunities for new startups.
3. They foster collaboration and partnerships
AI startups collaborate with tech giants like IBM, Google, and Intel to combine fresh ideas, technical expertise, and passion with large corporations’ industry knowledge, market access, and resources. For instance, OpenAI’s partnership with Microsoft has seen multibillion-dollar investments, marking the third phase of their collaboration, following previous investments from 2019 and 2021.
Successful AI Businesses
From cybersecurity to AI-powered virtual health assistants, AI startups have demonstrated immense potential and impact of AI technology in driving innovation and transforming industries. Here are the most successful AI-based businesses in 2023:
Cybersecurity and Antifraud
Industries like finance, banking, insurance, and banking face fraud threats. According to the Federal Trade Commission report of 2022, consumers lost over $8.8 billion to scams, underscoring the widespread existence of fraudulent activities. Entrepreneurs can capitalize on this by starting AI-based fraud detection companies. AI algorithms can analyze large datasets, detecting patterns and anomalies that signal fraud, minimizing risks and losses.
Generative AI and Content Writing Tools
As McKinsey reported, Generative AI has the potential to contribute $2.4 trillion to $4.4 trillion annually to the economy. OpenAI’s ChatGPT has gained significant popularity, enabling businesses and content providers to automate content creation. As a result, the demand for tools that detect AI-generated content and AI-based writing tools increased. AI startups can ensure business success by integrating AI with digital marketing services and offering comprehensive packages to agencies.
AI-Powered Virtual Health Assistants
Remote monitoring and personalized health advice have led to the rise of AI-powered virtual health assistants. These innovative solutions enhance patient care, reduce healthcare costs, and provide medication reminders. Integrating AI in diagnoses and securing medical records are set to accelerate the healthcare sector. AI startups focused on the healthcare industry can provide advanced treatment options while driving time savings and improved delivery of results.
Note: The following list of AI startups is ranked in no particular order. The selection criteria are based on a variety of factors, including market capitalization, revenue, and overall industry impact. That said, while they are highly regarded in the industry, plenty of other companies also offer exceptional products and services.
OpenAI
An AI leader focused on developing powerful language models
Logo from OpenAI
OpenAI is a private research laboratory that aims to advance artificial intelligence (AI) for the greater good. Initially focused on AI and machine learning for recreational purposes, OpenAI released its first AI toolkit, OpenAI Gym, less than a year after its founding in December 2015. It has since expanded its scope to encompass broader AI research and development.
In April 2023, the company experienced a surge in traffic with 1.8 billion visits, marking an 11.12% increase compared to the previous month’s 1.6 billion visits. In July 2023, OpenAI officially launched GPT-4, its latest text-generating model, making it available through their API. Since March, millions of developers eagerly requested access to the GPT-4 API, resulting in many innovative products harnessing GPT-4 capabilities.
SoundHound
An AI voice platform that transforms how people interact with devices through custom voice assistants
Logo from Soundhound
SoundHound specializes in voice AI technology, including search, voice recognition, natural language processing, and sound recognition. Inspired by the science fiction genre, Keyvan, the Co-Founder and CEO, envisions a future where personalized voice assistants revolutionize human interactions with machines for convenience and productivity.
In April 2023, SoundHound received a $100 million strategic financing to improve its financial situation by refinancing its existing debt and reducing cash flows. The company replaced $30 million of debt with a more favorable structure, extending the maturity date to 2027. This additional capital also supports SoundHound’s plans for innovation and growth, as its revenue for the quarter increased by 56% due to the rising demand for conversational AI.
GoodVision
A traffic video analytics solutions provider leveraging AI and a software-as-a-service model
Logo from GoodVision
GoodVision is a UK-based startup that uses AI to analyze urban transportation. It offers automation tools for all phases of traffic projects, ranging from AI-driven data collection to traffic modeling and real-time control. In January 2023, GoodVision secured $2.9 million in funding, with contributions from a Bulgarian firm, to fuel the company’s global expansion and broaden its distribution partnerships.
In April 2023, WSB, a design and consulting firm, selected GoodVision as its preferred AI-based solution for extracting data from videos captured by drones or existing traffic management system cameras. WSB was particularly impressed by GoodVision’s ability to pinpoint vehicle trajectory with lane-level accuracy, enabling mapping of near-miss incidents and collision-prone traffic flows.
Abnormal Security
Fortifying organizations against targeted attacks through cutting-edge email security platform
Logo from Abnormal Security
Abnormal Security specializes in email security, protecting businesses and organizations against specific, targeted email attacks. Its advanced platform offers comprehensive defense against various threats, such as phishing, graymail, malware, ransomware, spam, social engineering, executive impersonation, and supply chain compromise.
What sets Abnormal Security apart from traditional email security solutions is that it uses advanced artificial intelligence technology. Its platform understands individuals, their relationships, and business processes. Having a clear idea of these aspects enables the system to detect and prevent even the most advanced attacks effectively.
Recently, it made significant advancements in April 2023 by introducing three new products to enhance security detection for popular communication platforms such as Slack, Zoom, and Microsoft Teams.
Additionally, Abnormal Security is expanding its platform to improve the understanding and modeling of identity behavior through collecting and analyzing data from resources like CrowdStrike, Zoom, Okta, Teams, and Slack. The company’s efforts and achievements have been recognized, as it received six prestigious awards in cybersecurity and AI.
Grammarly
Helping millions of users elevate their writing through intelligence assistance
Logo from Grammarly
Grammarly specializes in developing innovative technology to enhance writing style and ensure grammatical accuracy. The company’s software empowers users to write confidently by providing suggestions for improved word choice and facilitating seamless communication of ideas.
In March 2023, it introduced GrammarlyGo, a cutting-edge generative AI product designed to enhance productivity in writing environments. This aligns the company with the trend of other companies that incorporate generative AI, such as ChatGPT API, into their offerings.
Notably, Grammarly has experienced substantial growth, with daily active users soaring from 1 million in 2015 to 30 million in 2020. Additionally, Grammarly Business has successfully expanded its reach among enterprise customers, catering to 30,000 professional teams spanning diverse industries.
Shield AI
Revolutionizing autonomous operations through the development of AI pilots and strategic collaborations
Logo from Shield AI
Shield AI, a pioneering defense technology company, is at the forefront of developing AI pilots for aircraft. It revolutionizes autonomous operations without needing GPS, communications, or human pilots. Its flagship product, Hivemind, is dedicated to ensuring the safety of service members and civilians through intelligent systems.
Shield AI has made noteworthy partnerships this year. Teaming up with Kratos, they have combined efforts to integrate and introduce an AI pilot for Kratos’ XQ-58 Valkyrie, thus, successfully realizing the concept of crewed–uncrewed teaming for jet aircraft. Furthermore, Shield AI also has a new collaboration with Boeing, with a mutual focus on expediting the deployment of artificial intelligence and autonomous capabilities to support warfighters better.
SoCure
Unlocking the future of secure Identity verification with AI-powered trust
Logo from Socure
SoCure is a leading authority in digital identity verification and fraud prevention. The company’s goal is to authenticate all legitimate identities instantly. Notably, the company received investment from Citi Ventures, Synchrony, and Wells Fargo Strategic Capital, with many of its customers being esteemed financial institutions, industry leaders, and government agencies. Currently, it boasts a customer base exceeding 1700.
SoCure was honored with the Tech of the Future: Identification, Authentication and Verification award at the 2023 Banking Tech Awards for its outstanding performance in the fintech and banking sectors. This recognition underscores its dedication to verifying all legitimate identities in real-time and eliminating fraud for online applicants. Additionally, SoCure made its inaugural acquisition in June 2023 by integrating Berbix’s counterfeit ID detection technology with its own image capture app and user interface.