June 20, 2023
As a result of standardization of the AI model development process, data availability has become a vital success component, particularly for generative-AI startups.
These startups are battling the difficulty of getting specialized training data, notably in banking and healthcare. As a result, according to Brad Svrluga of Primary Venture Partners, Generative-AI firms have a bleak future if they lack access to the requisite data.
According to PitchBook statistics, venture funding for generative-AI startups has hit $12.7 billion in only five months. However, some businesses, notably those in banking and healthcare, confront difficulties in acquiring specialized training data. Startups are now collaborating with data-rich organizations like EY to gain access to their vast data resources. It is also recommended that they train unique models for each customer using the client’s own data. This method provides customised solutions while also strengthening ties between entrepreneurs and their clients.
Larger tech businesses have a major edge in the field of generative AI since they have previously earned client confidence in data handling. Startups that rely on publicly accessible data, on the other hand, face significant obstacles when attempting to incorporate enterprise data. Early-stage firms confront the challenging job of creating social proof and brand awareness while vying to swiftly obtain data in certain sectors.
The sources for this piece include an article in WallStreetJournal.
