Avoiding AI Investment Pitfalls
Source: theregister.com
As the head of a tech company, sovereign wealth fund, or VC, you might be looking to invest in AI. AI promises cash returns and reputational enhancement for investors, but it's important to understand the potential pitfalls. Investing in an AI failure could reflect poorly on your firm.
If you want to avoid aligning your core mission with bankruptcy, here's some guidance. First, analyze the technology to ensure it's real and working as claimed. Determine what "working" means in this context.
Proof of Concept
For any large tech investment, a proof of concept pilot is essential. However, POCs can be misleading if not designed and verified rigorously. Forensic rigor is not always a primary attribute of business AI.
Quantifiable Results
AI is most successful when designed for a specific task with quantifiable results. Code-generating AI, for example, should speed up work and improve quality. If it doesn't, it's a problem, not a solution. POCs for AI coding should compare the time and quality of app production to the total cost.
Public Competition
Before investing heavily in AI, consider a public competition where teams can use the best AI coding help available. This will validate AI-assisted coding and create a framework for future development.