Google is pushing hard to make artificial intelligence as easy to access as cloud computing, building services that reduce both costs and the technical skill required from users. To my mind, there is a strong parallel with how Amazon Web Services made it easier and cheaper for companies to build web apps.
Throughout 2017 they made steady advances, releasing Google Cloud Machine Learning Engine and grew Kaggle, their community of data scientists and ML researchers, to more than one million members. They now have more than 10,000 businesses using Google Cloud AI services, including companies Box, Rolls Royce Marine, Kewpie and Ocado.
And now they are introducing Cloud AutoML, which promises to:
Google seems to be in the vanguard, but Amazon and Microsoft are pursuing similar agendas. For AI startups this means that machine learning expertise will become relatively less important whilst access to data and customer understanding will rise in significance. Given that ML expertise has been in short supply we can expect to see a sharp rise in the number of high-quality startups using machine learning to make better products (as distinct from low-quality startups that claim to use machine learning but don’t really). It also means that the opportunity space will tip towards applications and away from infrastructure.
At Forward Partners we’ve had “Applied AI” as one of our two focus areas for investments for around six months now. We define Applied AI as anything that mimics human cognition (that’s the AI bit) in an application applied to real-world problems using well-understood technologies. We insist on ‘well-understood technologies’ because as an early stage investor we want to be funding companies that can get products to market in predictable time-frames rather than what I sometimes unkindly refer to as research projects. From our perspective, services like Cloud AutoML are great because they add to the available suite of well-understood technologies and therefore increase the range of startups we can back. This is a trend we can expect to continue as Google, Amazon and Microsoft offer more services in this area as they compete to keep people inside their ecosystems.