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ARTIFICIAL INTELLIGENCE

OR THE BRAINIZITATION OF THE ECONOMY


Paul Bazin & Pierre-Eric Leibovici

I think we should think of AI


as the intellectual equivalent
of a backhoe.
It will be much better than
us at a lot of things.
GeoreyHinton
With more advances in arti cial intelli-
"If we succeed, we will have turned gence ahead, the need for human labor
the most awful paradigm will fall further
that we know on its head.
The inevitability of death." Larry Fink

Larry Page

So the biggest thing that were focused


We will transcend all of the limitations on with arti cial intelligence is building
of our biology computer services that have better
perception than people, so the basic
Raymond Kurzweil human senses like seeing, hearing,
language, core things that we do.
Je Bezos

So the biggest thing that were focused on


with arti cial intelligence is building "First the machines will do a lot of jobs
computer services that have better for us and not be super intelligent.
perception than people, That should be positive if we manage it
so the basic human senses like seeing, well. A few decades after that though
hearing, language, core things that we do. the intelligence is strong enough to be
Mark Zuckerberg a concern. I agree with Elon Musk and
some others on this and don't under-
stand why some people are not con-
cerned."
With arti cial intelligence we are Bill Gates
summoning the demon.
Elon Musk

"Once you start to make machines that


are rivalling and surpassing humans
with intelligence, it's going to be very
di ult for us to survive, it's just an
inevitability."
Clive Sinclair
WHAT IS ARTIFICIAL WHAT THEY THINK
INTELLIGENCE? ABOUT AI
60 years ago, John McCarthy used for the rst time the term Arti cial
Intelligence. What does it mean and how has it evolved since 1956?
B r u n o M a i s o n n i e r is the founder of
John McCarthy rst de ned it by the science and engineering of making Aldebaran robotics. After giving birth of
Nao, Pepper & Romeo, three companion
intelligent machines.
robots, he stepped back from operation
A more precise explanation was made by Nils J. Nilsson in his book Quest for
and decided to think about the future
Arti cial Intelligence Arti cial intelligence is that activity devoted to making
of robotics and the next step.
machines intelligent, and intelligence is that quality that enables an entity to
function appropriately and with foresight in its environment.

He added that intelligence can be measured by the abilities to reason,


achieve goals, understand and generate language, perceive and respond to How would you de ne arti cial intelligence?
sensory inputs, prove mathematical theorems, play challenging games,
synthesize and summarize information, create art and music, and even write By the fact we say Arti cial intelligence it means that it is NOT intelligent.
histories. (ibid) When Nao is walking, he is not arti cially walking. He just walks.
AI hasnt become much more intelligent since the victory of Deepblue against
However, the very nature of what we call Arti cial Intelligence makes it nearly Kasparof. The parameter that has evolved is that we don't use directly calcula-
impossible to n a more technical and immutable de nition. Indeed, as the tion power, but huge calculation power to create a dumb neural network
AI100 (a committee whose mission was to study the evolution of AI during which seems intelligent.
100 years) explained, as soon as a new AI technology becomes a practice in
itself, it stops being called AI. According to Kevin Kelly, co-founder of Wired What are the main challenges for the next e ears?
magazine, most of the AI wont be very exciting [] AI will be everywhere,
cheap, utilitarian, boring, like electricity today. To become intelligent, the computer needs to take decision by himself, he has
to be autonomous. For now, he only executes a code that human implement-
ed via neural networks. We should try to imitate animals intelligence as a

What we call AI today is in fact a start. And then make it evolves.

Will AI look like Sci-Fi in the next 50 years?


succession of predetermined rules.
AI is an incremental curve. Nowadays, this curve attens itself but it just
We call it AI because it does things needs a good idea to really start the exponential. A human brain (1000Hz for
basic processes) is a million times slower than a computer(TeraHz), thus we
faster than our brain. can imagine that when we'll succeed to make it truly intelligent the eld of
possibilities will wildly open.
AI IS MOSTLY A LOT Machine Learning is a tool for AI. Its a type of
algorithms that learn from data sets, improve and
re ne t eir re t o er e
Internet Of Things (IoT): A network that allows
every connectable device to communicate and
interact. The key challenges for IoT are: (1) to have

OF BIG WORDS Deep Learning is a type of machine learning


orit t t e i er ne r net or o e
only one communication protocol, (2) improve
batteries and (3) spray the network.

algorithms are often used in video, audio and speech Algorithmic Game Theory is a multi-agent algorithm
recognition. that calculates the equilibrium between the goal of
Machine Learning focuses on the dierent agents, the global goal and set the
the question of how to get Computer vision, through deep learning algorithms, optimal role of every agent.
computers to program
is able to classify object, people, movement, situation,
themselves.
etc. Virtual Personal Assistants is a software that
performs autonomously the tasks of a personal
Tom M. Mitchell,
Robotic gives a robot the ability to learn to interact, assistant.
Carnegie Mellon
in a most natural way, with its environment and
people using its hardware capabilities. Recommendation Engines and Collaborative
Filtering is an algorithm that predict the task of
Natural Language Processing (NLP) is used to costumers by knowing its previous experience. For
interact with human. Its born with the Turing test in instance, the Net i algorithm is a Recommendation
1950. The goal is to know if the user is speaking to a Engines and Collaborative Filtering
computer or another human. It is used for bot, voice
recognition and translation. Supervised learning is like a black box where the
algorithms are trained by giving them a lot of inputs
Collaborative Systems is still at a research level, but and linked outputs in order for them to learn the
the goal is to build autonomous systems that can rule.
work collaboratively between them and with human.
Reinforcement Learning is a supervised learning but
Crowdsourcing and Human Computation, close to with only one example given. Like a child who burns
Virtual Assistants Reinforcement learning
Collaborative Systems, is an area where the computer itself, he only has to do it once to know that re
Deep Learning Gesture control should ask for human expertise if it is conscious that burns. Researchers are currently working on it.
he cannot solve the problem properly.
Unsupervised learning is a black box at which we
give only the inputs and the algorithm adapts itself to
Video recognition understand and give the good output without
Speech recognition previous example. It is the next big step for AI but it
has not been done yet.

Context aware computing

Recommendation engines
COULD R2D2 BE
MY BEST FRIEND?
Now computer vision and Lets imagine Daphni, a personal robot. When Daphni then asks for your advice to make the
ee re o nition t or you go to bed you will say to Daphni Please, decision ( w
Theyre not perfect, but they
wake me up at 7am (NLP). When the alarm ).
work. And that enables a lot
of applications, which is why rin ni i t rn on t e oee ine Before leaving your home, Daphni advises
you see all this excitement ( e e ), because it has learnt yo to t e ierent ri e t n e ery ot er
around deep learning and A.I.
t t yo i e to t e yo r oee n o r y e e o t e tr to e yo e
Because now that it works,
there are so many doors that after you wake up (Machine Learning). 10 minutes (Algorithmic Game Theory).
are open all of a sudden. When you are showering, Daphni will ask the Your autonomous car will follow Daphnis
soap provider to give you the amount you advice and take you safely to work ( ee
e
Director of Facebook AI need, which is not the same amount needed learning).
Research (FAIR), for your 10-year-old daughter (Collaborative
Nov. 2015 Systems). Then, Daphni will go to the kitchen Even if this is what we picture when we think
o oti r t e o oee n i e of AI, it is not for an immediate future! It is
it to you ( e ) without adding still impossible to contextualize every life
sugar, however, you used to put sugar in scene. We are not able to make a human
yo r oee t t ree y o yo e rt o ter o e ient o er
Daphni not to add sugar ( e e e of calculation, the robot needs to be huge
Learning i e yo rin yo r oee and equipped of a big and noisy fan. Also,
Daphni tells you about your daily meeting the overall capacities of robots are still
(Virtual Personal Assistant) that he sched- limited. For instance, they are still not able to
uled for you based on the free time slot you climb stairs or open doors unless the house
have (Recommendation Engines and is equipped.
Collaborative Filtering). But he hesitates for
the 5:00pm slot because you have the
possibility to both attend the football game
of your son and meet with your CEO.
THE POWER OF
OPEN SOURCE IN AI
If an alien watched TV before invading
Earth, it would think that the world was
full of robots. In reality, today's robots
are still too stupid to be let loose.

Massimiliano Versace
CEO Neurala

AI has become an unavoidable topic of discussion. Famous CEOs (Bill Gate, Elon Musk, FROM THE 2017 AI BUBBLE
Larry Page), well-known scientists (Stephen Hawking, Ray Kurzweil, Tim Bern-
ers-Lee) and politicians (White house, European Parliament) are concerned about It is surprising to see that the excitement around AI today reminds us of the emphasis
o rti i nte i en e i e o e n or er to n o e n er n re re t e around internet exactly 20 years ago. A lot of people say that they handle the new technol-
future, several associations avec been launched all over the world by public & private ogy, but few know for real what theyll do with it. Thus, we can imagine that the interest
researchers. ro n i e te t e e ne t t o or t ree ye r internet e i t t e en o t e
90s, and then will rise progressively. For sure it will revolutionize a lot of industries and will
Amazon, Facebook, Google, IBM and Microsoft combine forces by sharing their work create numbers of new usages. If we continue the parallel, we may think that the Google of
in the Partnership on AI. AI is about to be created and will require some time before duplicating the Google success.
on n t n o n e en non ro t o i tion or re e r The interviews of 4 worldwide recognized experts reminds us that the visibility is low and
Stanford University has asked leading thinkers to study the AI evolution for the next that it is hard to make realistic projec-tions regarding the potential maturity of AI: Luc Julia
100 years through the AI100 annual report. iri in entor e e r n e oo rti i nte i en e e e r r no i onnier
(Founder of Aldebaran Robotics), Massimilano Versace (CEO of NEURALA)
e e t e ert o t e e re e i eir in oti tion re in i -
tion. In order to attract them, GAFA had to meet their expectation, that is why the
technological breakthroughs are public and the entire research is open source.

In addition to the famous ones a multitude of association are created all over the
world to share and accelerate work on AI:
AIInternational, (AAAI), CSAIL (MIT), EAIA & ECCAI (Europe), AIRC (Japan), AFIA(France),
DFKI (Germany), CAAI (China), RAAI (Russia), AEPIA (Spain), PRICAI (Australia), SMIA
(Mexico), NAIS (Norway), AISB (UK) and a lot more
Alexandre Lebrun is a successful serial
entrepreneur and the former co-founder
and CEO of Wit.ai that he sold to Facebook
in 2015. He then joined the Facebook
Arti cial Intelligence Research (FAIR)
group. He is passionate about language,
TO THE BIG BANG AROUND THE COMBINATION OF and helping machines understand humans.
BRAINIZATION AND SOLIDIFICATION
How would you de ne arti cial intelligence?
AI is the art of teaching machines how to reproduce human tasks. Technically,
we use machine learning to build AI systems. Right now, supervised learning is
After the digitalization of the economy we will be the witnesses or the actors of its very successful: we train a neural net with lots of examples -- know inputs and
brainization. outputs, for instances pictures of objects and their description -- and then the
t t i ti e e i o er e t e o i i tion o t e e ono y with the development of machine is capable to reproduce the task with inputs that were never seen
service robots. Their mission is to replicate mechanical functions realized by human before.
being in a moving environment (not to be confused with industrialized robots that are
in a closed environment). The autonomous cars are service robots. The service robots
What are the main challenges for the next e ears?
sector has not yet exploded since robots are without brains. AI enable the brainization
The main challenge is to give machines some sort of common sense. For
of robots, and ultimately change our lives drastically as well as the organisation of
instance, if you want to do a perfect translation from Chinese to French, you
work.
really need to understand the cultures of both source and target languages.
We have seen a lot of corporations that have missed the digitalization and are now Babies learn common sense by exploring the world, trying dierent actions,
tr in to r i e r ini tion n o i i tion o t e e ono y i e i i r observing how these actions impact the world. This is what we call "unsuper-
or even more powerful impact for the ones that dont see and anticipate its potential. vised learning".
A step towards unsupervised learning could be reinforcement learning (RL), an
AI will become a commodity like electricity and Internet are today. The question approach that's very hot this year. With RL we try to take into account reward
i i i t to n er i en i it e t e e en it e r t e e i or punishment feedback in real time. For instance, a child does not need to get
rely on the services developed around AI and not on the technology itself burnt 1000 times before he or she understands boiling water is hot -- but our
classical supervised learning model do need that many examples before they
can get it!

Will AI look like Sci-Fi in the next 50 years?


Probably not. Expectations created by Hollywood (from 2001 A Space Odyssey
to Her) are incredibly high. We need to solve unsupervised learning and other
issues to get there, and we don't even have a clear path to that as of 2017.
I don't think true intelligence can be learnt from datasets. Humans "ground"
their mental concepts on their own life experiences. A truly intelligent AI
would need a physical body, in other words a robot, to do this -- but then the
speed of learning would be too slow. We could give the AI a virtual body in a
virtual world in order to accelerate the process (for instance, some teams
initially train their autonomous driving models in the Grand Theft Auto game),
but the virtual world will not be as realistic as the real one. You need truly
intelligent AI to do simulate this word... that's a chicken and egg problem.
WHAT THEY THINK
ABOUT AI
L u c J u l i a is the vice president of innova-
tion at Samsung where he developed the
ARTIK cloud. He is also the co-authored of
e e e e
Apples Siri.
Luc is making real people's lives better
using technologies. No, or maybe in 5000 years. But I cant imagine it coming in our era. Human has
analytical abilities that computer has not and its not only a question of data. A
Robot in a factory will be 10 times quicker than a human to do its tasks, a
calculator will perform complex operations 1 million times faster, therefore,
ww e e e e e
they look smarter in these areas of expertise but has no intelligence at all in
other domains.
Ideally, AI is made to replace human intelligence, unfortunately we dont know
If a robot has to take the human place it should know about many domains,
how a human brain works. Thus, we cant make a modelling of it.
and resolve cross-domains ambiguities and complementarity. That is not
Today, AI is mainly about calculation and task automation. It is doable to model
realistic.
tr te y or rti r ty e o re e ion in rti r o in e
or the Go game which have limited combinations on a single board. What is not
doable is building cross-domain algorithms that would understand without any
i ity ierent it tion in ierent onte t

e e e e e e e e

Beside the power of calculation that has increased tremendously in the next 25
years, we havent see any break through. Algorithms that are used today are
the same of the ones used 25 years ago. Thus, I cant be optimistic for the next
5 years.
However, AI should focus on analysing data with so called deep learning
algorithm. Deep learning is, once again, only due to computational power. 25
years ago you had to wait 1 day for your algorithm to run a 2 layers neural
network. Nowadays, a 10 layers neural network gives its result in real time.
Beside big data, research should focus on cross-domain by crossing two
algorithms that work on separate domains.
WHAT COULD SLOW
THE EMERGENCE OF AI
AS A STANDARD?
"The internet and the platforms that it
makes possible a o ery small groups of
individuals to make enormous pro ts
i e employing very fe eople. This is
inevitable, it is progress, but it is also
socially destructive."

S ep en Hawking

e e
There is a disappointment caused by the state of current technologies. Everyone
i i in t e i e ee in Ho y oo o ie n t e e ite ent ro n
it to y e t e e e t tion ro e re ity i t t e i not e ie
as a best friend for a long time. As internet in the early 2000s, the interest around
e
i e re e
AI could backlash because of the fear of It should not be seen as a threat but an
or er to e re e y inte i ent opportunity. It is going to modify
e e e
machines, according to Forester markets organization but the mutation
e tion n e o i tion or t e ro t in t e ne t ye r
e e r o o i e re e i e progressive as it as ith
o i re on i e en e ri en r r e or n inte i ent
y y i re e ent i Internet and the digitalization of most of
e i e i e i Ho n i tion e re ente ro ro -
surely lead to protests and thus political the industries. Some players i not
tin r i i ri in tion or n n i e tin o o re t e
e te n n i tori oint o ie have the mind-set to adapt but ne
in o e ien ie en e y te no o ie n t rote tion
innovation leads to productivity improve- players i ecome leaders in their
o e or e to eo e o e i re ren ere o o ete
ent o t e o o to orro re ti to domain of e ertise. We are in the
(AI100)
e eter ine ne e t e process of brainization.
The legislation should learn to adapt itself and be reactive by anticipating
business of phone operators suddenly
t e inno tion e n re y e re t e ee t o tron re -
disappeared long ago. On the other
tion. Fortunately, things are moving fast and the European Parliament is
hand, the automation and the adoption
already debating on robots legal status.
of the phone have increased the produc-
tivity of other jobs.
When there is an innovation America makes a business, China copies it and
Europe regulates it.
Emma Marcegaglia president of ENI
HOW FAST DOES IT GO?
WHO ARE THE ACTORS,
WHERE ARE THEY
AND WHAT DO THEY DO?

In 2014, the US represented more than 50% of the AI investment.


European investments represented only 10%, falling behind China at 15%.
Worth mentioning is that the research was pursued by GAFA located in the US.
When asking AI companies what they do in terms of AI, one
t ir o t e n er ine e rnin ore t n t y
t t t ey e n t r n e ro e in n not er t
would say computer vision. The last one fourth is divided with
virtual personal assistants, smart robots, context awareness

In 2015, HealthTech represented 15% of all AI venture invest-


ments, followed by adtech and business intelligence. Followed
by well-being, virtual assistants, transport & robotics. The
investors were less interested by education and agriculture.
FRENCH STARTUPS
ARE IN
In France, we count more than 200 startups that claim to use
AI in France. If we assume the number of AI startups given by
Venture Scanner (1589) to be correct, that would mean that
12.5% of AI startups are French.
EDUCATION TRANSPORT ADTECH COLLECTIVE
We could add to this several other companies such as
r t ren o ny t t re te rti i e rt t t POD NAUYA DATABERRIES SKOVEO
HOLBERTONS SCHOOL XEE ADOMIK RECAST.AI
went public in 2010 and all the startups founded by French
OC MISTERFOX S4M CLUSTREE
entrepreneurs across the world, such as:
AUTOKAB CRITEOL CP
Sentient Technologies ($ 143m funding)
CustomerMatrix ($ 16M funding)
IQ engines (Acquired by Yahoo)
Madbits (Acquired by Twitter)

VIRTUAL ASSISTANT ROBOTIC PROCESS

WIIDII ALDEBARAN SHIFT TECHNOLOGY


FYBOTS SCORTEX
OTTSPOTT
BALYO ALKEMICS
JULIE DESK CYBELANGEL
PARROT
Immersive Robotics

WELL BEING

REMINIZ
WITHINGS
WANDERCRAFT
SOMFY
WHAT IS THE MARKET
AND WHO PAYS
FOR IT? Source CAGR Valuation 2020

Tractica Research 38,56 % $ 3,01 B


e eo t e i ty to e ne e ty t i it i not
o i e to i e e r e e te tion o tt e r et
GII Reserach 53,65 % $ 5,05 B
i e in n in t e t re
e e e t tion or oe ro n or G e e r
Statista 59,42 % $ 6,08 B
to n or erri yn
r et to e e
ent re e e t
ore t n n in
t e or
it t e
i e NAME
r et n y e o n n Ger ny BB Research 60,3 % $ 6,24 B
n n n
Accenture cleversense 61,22 %
DeepMind Api.ai Vision Factory$ 6,42 B
Timeful emu
e o o n nn ro t r te G o t e r et i 11
e ti te to e ro to or r et Techcrunch Moodstock 102,34 %DNNresearch
Jetpac Granata $ 20Dark
B Blue Labs
tion o in r et re ort y r et-
n r et o Merril Lynch 159,95 % $ 70 B
apteligent urban engines Granular Ionic Scalyr

e on t e r Clarifai
et re ort t Anomali
e r et MindMeld
e t or
Kindred tt e
Framed e ti e
in17
e tor e in e te in t rt n i t
THE CLIMATE CORPORATION Kensho Rocana Datanyze
en o rin t e nOrbital
erInsight
e eeInct t t Recorded
e in e t ent re re ent ore t n ti e t e
Future Farmers Business Network
tion o t e r et n ot er or t ey re e nite y ettin on t e t re e e tion i
o on i t e r et nee to t re
nervana systems itseez IQ Engines Movidius
5
e n t in t t i ery ro i in e tor r ro ein t re n it ri t
t re Indisys MAANA ninebot LU Lumiata Sigfex

Embodied Incoming emotient Fortscale Gotlt !

30 + Prelert api.ai savioke Perfant DataRobot DataRobot

Smartrip BODY LABS bluedata Rithmio Prism Skylabs

PERFORMANCELAB swre Xevo Cognitive Scale MindMeld

WHOKNOWS PrecisionHawk Chronocam


WHAT IS THE PLACE OF AI
INVESTMENTS INTO
THE VENTURE MARKET? The CAGR of the entire Venture Capital market is estimated to be 35.86% from
2016 to 2020 ("Global Venture Capital Investment Market 2016-2020" report)
According to Artem Burachenok, VCs have invested $704M in 79 AI startups on Q1 & Q2 2016.
Considering the estimated growth speed of AI and VC markets, we can be sure
On the same period, the global VC market financed 3 894 startups with $53.9Bn
that AI investments will take a much bigger part on the global venture market.

That means VC investments in AI represent only 1.30% of the venture market.


w

e e i i tin ro i y re tin y te t t re inte i ent to i in


intelligent systems that are human-aware, trustworthy and decision takers. Take a
Evolution of AI market e rity y te in te o t tri erin t e r en t ere i o e ent
7 detected at an inappropriate hour, the system should recognize who it is based
on the companys organigram or social network and then decide by itself if it is an
6 abnormal situation and what to do for each case. For instance, it would call the
5 police and close the door if it is categorized as a robbery with a high accuracy.

4 The ecosystem is understanding the added value of AI in each sector. Such as the
3 automation of customer services. Gartner Inc. predicts that, by 2020, 85% of
customer interactions will be managed by machines.
2 Therefore, we have seen trends such as bot companies in 2016 and VCs invest-
1 ments are going along with these trends.

0 These investments are led by big actors, mainly from the US.
2015 2016 2017 2018 2019 2020

Tractica Research GII Research Statista

BCC Research Accenture


TYPE NAME NUMBER
OF DEALS

CVC 30 +
INTEL Indisys Embodied Cognitive Scale Lu lumiata

MAANA Sigfox DataRobot


Four biggest
investors in AI
WHOKNOWS PrecisionHawk Chronocam ninebot

api.ai bluedata BODY X LABS

since 2011
Rithmio Gotlt! Perfant Savioke emotient

incoming MindMeld Skully Prelert FORTSCALE

PERFORMANCELAB Xevo Smartrip Swre

VC DATA 25 + SIGOPT Citrine Informatics kaggle Misocline We

BLUE RIVER CAPPELA SPACE ila LiftIgniter Other players are investing a lot in AI as well, judging
COLLECTIVE that it is the new technology shift: New Enterprise
carsabi TIMEFUL SI Vicarious Atomwise Zymergen Associates, Plug and Play ventures, Horizons Ventures,
Formation 8, Andreessen Horowitz, Accel Partners, GE
DroneDeplay CloudMedx Nervana Verdigris Technologies
ventures, Samsung Ventures, 500startups

apteligent Farmers Business Network urban engines Granular


CVC
GV 18 +
clarifai

KINDRED
FRAMED

MindMeld
SCALYR

Rocana
ANOMALI DATANYZE

THE CLIMATE CORPORATION

KENSHO Recorded Future IONIC Orbital Insight Inc

VC KHOSLA 15 +
Blue River Timeful SI Kaggle Atomwise
VENTURES
MetaMind ThoughtSpot Vicarious CrowdMed

Ayasdi Vectra Vectra Lookout Trueaccord


BY PRIVATE Name Investors N rounds Total funding Last funding Location Industries

INVESTORS Kortschak Investments, L.P. 16 $US2 100 000 000,00 2017-01 USA #BigData
#PredictiveAnalytics

IN THE AI STARTUPS Google, Alibaba 3 $US1 390 000 000,00 2016-02 USA #AR #ComputerVision

Lux capital 3 $US290 000 000,00 2016-10 USA #AutonomousCar


Draper Fisher Jurveston
There are already big players that have developed flourishing
businesses around AI. And AI investments have also a specula- Blackstone, Insight venture, 4 $US177 000 000,00 2016-06 USA #CyberSecurity
DFJ growth
tive aspect. Take Magic Leap funding for instance: it is the Fairhaven Capital, Khosla
ventures
second biggest AI investment of all time however, no one have
seen their technology. Investors have started to doubt their
Data collective, SoftBank 3 $US174 140 000,00 2016-10 USA #Robotics #BigData
capacities to deliver what they have promised. #BioInformatics

NEA, Bessemer 8 $US163 690 000,00 2016-10 USA #Healthtech


Georgian Partners

Tencent 1 $US150 000 000,00 2016-04 CHN #Bigdata #HealthTech

Access industries, Horizons 3 $US143 800 000,00 2014-11 USA #ProcessAutomation


ventures #AIAAS
Tata Communication

Floodgate, GE, IVP, Khosla 7 $US106 350 000,00 2015-03 USA #BigData
Ventures, #PredictiveAnalytics
KPCB, U.S. Department of
Defense

J.P. Morgan, Andreessen 2 $US105 000 000,00 2014-09 USA #entertainment


Horowitz #Robotic
Index Ventures and Two
Sigm
B
By 2018, Gartner predicts that most of the 200 largest companies in the Toyota wants to invest $1B for the development of an autonomous car
world will use AI to exploit data, improve processes and better serve and production chain. Baidu, the Chinese giant is following the movement
customers. To do so, Multinational Corporations (MNCs) have started to by launching a $200M corporate venture fund specialized in AI.
invest massively in young AI startups.
e o ern ent o ierent t te o nt to oin t e r eo or
It goes by the acquisition of promising AI startups. With 11 acquisitions instance, the government of South Korea government announced an
between 2011 and 2016, Alphabet is by far the leader in this area. investment plan of $800M in AI. The US plan to invest $4B.

MNCs also create dedicated venture funds to have a piece of the AI Thus, big players have truly understood that AI is a revolution that cant
revolution. Intel Capital is the second VC in the world to invest in AI, be missed. All the investments committed will make AI the standard of
Goo e ent re i o rt n t e tent o ition e n G ent re tomorrow.

Google and Intel are, by far, the most pro-active buyers and investors in
e e e we
t e ierent e tor
With its $400M acquisition of Deepmind in 2014, Alphabet (at the time B e e e e e
Goo e on r e it i ro e to y on t e ro t
Facebook has created an AI division and has recruited Yann LeCun, a
e e e e
French Deep Learning expert to lead this revolution. e e ee w e e
More than that Microsoft, through Microsoft Ventures, has invested in the e e
Element AI incubator, an accelerator & research lab for AI startups based
in Montreal connected to the world's best academic ecosystems.
Most pessimists say that with the computer intelligence on their sides,
GAFAs (and Chinese BATX) would be powerful enough to reverse the
In addition, Amazon announced that they give its AI blocks Rekognition,
world political order!
Polly and Lex to anyone that asks. Lex is the technology that powers
Amazon Alexa, and allows developers to integrate rich conversational
e erien e in t eir oerin o yi t te o t e rt te t to ee
service that has forty-seven life-like voices in twenty languages. Rekogni-
tion is an image processing service, that can identify content in images.
ARTIFICIAL NAME
INTELLIGENCE:
MOST ACTIVE 11
cleversense DeepMind Api.ai Vision Factory Timeful emu

CORPORATE
Moodstock Jetpac DNNresearch Granata Dark Blue Labs

BUYERS (1/2) apteligent

Clarifai
urban engines

Anomali MindMeld
Granular

Kindred
Ionic Scalyr

Framed

2011-2016YTD 17
THE CLIMATE CORPORATION Kensho Rocana Datanyze

Orbital Insight Inc Recorded Future Farmers Business Network

nervana systems itseez IQ Engines Movidius


5

Indisys MAANA ninebot LU Lumiata Sigfex

Embodied Incoming emotient Fortscale Gotlt !

30 + Prelert api.ai savioke Perfant DataRobot DataRobot

Smartrip BODY LABS bluedata Rithmio Prism Skylabs

PERFORMANCELAB swre Xevo Cognitive Scale MindMeld

WHOKNOWS PrecisionHawk Chronocam

5 Emotient Vocalia Turi Perception Tuplejump

1 Prelert

4 Madbits TellApart Whetlab Magic Pony Technology

0
0

ARTIFICIAL IBM
3 Cognea Explorys AlchemyAPI

INTELLIGENCE:
3 Cognitive scale PCSapi WayBlazer

3 Equivio NETBREEZE GENEE

MOST ACTIVE 6 Comfy Insidesales.com ElementAI Crowdflower Cognitive Scale Neura

CORPORATE 3 Prediction IO Tempo MetaMind

6 DigitalGenius Evariant Moneytree Introhive 6sense Insidesales.com

BUYERS (2/2) 3 Lookflow Skyphrase Indisys

1 Hortonworks

3 Wit.AI Face.com
FACEBOOK
1 Hello Heart

EBAY 3 Expert Maker Sales Predict Hunch

1 Baixing

AOL
3 Sociocast Convertro Gravity

0
2 DESTI Medio

Rocketfuel Workfusion Sensoro Netpulse


NOKIA 9 babel Cedexis Indix Rapidminer Moovit

2 ANGEL.AI Orbeus
AMAZON
3 Parracel Rachio

NICE 2
0
Causata Nexidia

2 Crosswize Palerra
ORACLE
0
DAPHNI WONT MISS IT EITHER WHAT THEY THINK
In 1996 it was considered disruptive to launch a project within the sector of Internet. In 2016
what is disruptive is not to create a company in the Internet sector but to launch an
ABOUT AI
insuretech AI, an agritech AI

We think AI is a buzzword that is not properly used. AI is a tool and not an end. It is a
Massimiliano Versace is the co-founder and
CEO of Neurala Inc. a company that emu-
resource for startup to develop new services that will disrupt many industries. However, lots
lates the human brain function in software.
of entrepreneurs claim to have a technology that works whereas they back their algorithms
He founded the Boston University Neuro-
with cheap labours. We dont want entrepreneurs to promise a technology while having
morphics Lab where he has pioneered the
nothing. research of Deep Learning and Arti cial
Neural networks.
e e i r o o r in e t ent t e i
Larry Page
1. w . AI is a buzzword. Too many projects declare they are
developing AI assets while they are only working on basics algorithms
2. No Algorithm 20% better than the one developed by the competition. Indeed, AI How would you de ne arti cial intelligence?
research is an open source and led by GAFA. Competitive advantage wont last Arti cial intelligence consists in computer programs that emulate aspects of
against the powerful open source consortium. animal behavior and competences in software or hardware. Among AI, Neural
3. Automation of rebarbative tasks/ data mining tasks will mutate thanks to AI. For Networks and Deep Networks are a sub- eld that is enjoying the best results
in t n e t e r e not re y yet i it i e t eir business. It should among all AI techniques due to their ability to more closely emulate brain
happen rapidly with the emergence of AI. Part of their value is to search into data processes and robustness.
n or er e n n o tion t to t e tion o t e e t ey
have to deal with. This task could be optimized thanks to AI. What are the main challenges for the next e ears?
4. Owning of proprietary data set and strong sector expertise. The belonging of AI and Deep Networks today are laser-focused on individual competences,
tremendous amount of data (coming from internet and sensors that have starting such as visual perception, speech recognition, navigation, motor control, to
to appear everywhere) as well as of a strong sector expertise on a vertical market name a few. But, real intelligence uses senses that work together. Today's
enable the development of new disruptive services and new usages. mobile robots, drones, and self-driving cars need advanced and, more impor-
5. AI will give service robots a brain. Service robotics will revolutionize numbers of tantly, coordinated capabilities in perception and mobility to be ee tively 'put
sectors. Logistic and transportation market are good examples of this mutation. to work' in complex environments. To date, the best implementations of these
capabilities in a "single package" come from biology. The challenge for AI is to
We are convinced that AI will become a new standard and it will automate rebarbative tasks, recognize that the unit of AI is a brain rather than its individual competence.
personalize products, prevent energy waste, increase security, create new jobs and so on so forth
AI is not a threat but an opportunity to cease and we wont miss the brainization turn of the Will AI look like Sci-Fi in the next 50 years?
economy. The feeling for humans is that they wont be alone anymore there will be
The similarity of AI today and Internet 20 years ago are too obvious to be ignored. The powerful brains in every device that will render our environment richer and
market is growing fast and we think it is a good time to invest in good technologies that more interactive. And smarter.
i r t e i erti
AT DAPHNI WE BELIEVE IN THE EUROPEAN NATURAL COMPETITIVE
ADVANTAGE OVER THE OMNIPOTENT US

Focus where Europe has natural advantage


Collective Quality of life Inventive

Productiviy Empowerment Entertainment


100 STARTUPS THAT BRING AI TO LIFE:
These tables Give you information about where the money is invested in AI.
On these 100 startups there are 64 from the US, 12 from the UK and 9
from France. That re ects the predominance of USA on AI ecosystem.
On the investment part we have 66 funding, 29 acquisition and only 3 IPO.
STARTUP TYPE INVESTORS N ROUNDS TOTAL FUNDING FOUNDED ON LAST FUNDING COUNTRY INDUSTRY

Vulcan Capital,
4info funding 7 $ 66 ,790,000 2004 2014-08 USA #Adtech
USVP Gannett CO
Salesforce, Bain Capital
6sense funding 3 $ 36,00,000 2013 2015-07 USA #PredictiveAnalytics
Battery, Venrock
Fenox Venture Capital,
#BigData #Analytics
Affectiva funding Horizons 4 $ 33,720,000 2009 2016-05 USA
KPCB, Myrian Capital #HealthTech

Agricool funding daphni 1 $ 4,300,000 2015 2016-11 FRA #Agriculture


AlchemyAPI acquisition IBM / undisclosed 2005 2015-03 USA #bot
Aldebaran
Acquisition Softbank / $ 100,000,000 2005 2012-03 FRA #Robotics
Robotics
Alpaca funding Mitsubishi, SMBC, D4V 3 $ 2 ,800,000 2015 2017-01 JPN #fintech #Trading

Mayfield Fund, Norwest


analyticsMD funding 2 $ 13,160,000 2011 2016-11 USA #bigData #HealthTech
NVP

Angel.ai acquisition Amazon / Undisclosed 2015 2016-09 USA #Bot

J.P. Morgan, Andreessen


Anki funding Horowitz 2 $ 105,000,000 2010 2014-09 USA #entertainment #Robotic
Index Ventures and Two Sigm

Apixio funding Bain Capital, SSM Partners 5 $ 36,090,000 2009 2016-05 USA #Healthtech

Arago funding KKR 1 $ 55,000,000 1995 2014-10 GER #ProcessAutomation


#AIAAS
Floodgate, GE, IVP, Khosla
Ventures, #BigData
Ayasdi funding 7 $ 106,350,000 2008 2015-03 USA
KPCB, U.S. Department of #PredictiveAnalytics
Defense
B12 funding General Catalyst Partners 1 $ 12,400,000 2015 2016-07 USA #Aiaas
Bit Stew $ 153,000,000 2005 2016-11 USA #IoT #SmartGrid
Acquisition GE /
Systems

Blippar funding Qualcomm ventures 3 $ 99,000,000 2011 2016-03 UK #Edtech


Khazanah nasional
3 Lookflow Skyphrase Indisys

1 Hortonworks

3 Wit.AI Face.com
STARTUP TYPE INVESTORS FACEBOOKN ROUNDS TOTAL FUNDING FOUNDED ON LAST FUNDING COUNTRY INDUSTRY

1 Hello Heart
Butterfly Aeris Capital

EBAY
funding 1 3 $ 100,000,000 2011
Expert Maker 2014-11
Sales Predict USA
Hunch #HealthTech
Network Jonathan M. Rothberg
1 Baixing
Carmat IPO Public Valuation $ 67,700,000 2008 2016-02 FRA #HealthTech
3
AOL
Sociocast Convertro Gravity
USV, Menlo Ventures
ClarifAI funding 2 0 $ 40,000,000 2013 2016-10 USA #ComputerVision
Qualcomm
2 DESTI Medio
Seven ventures
Clark funding 2 $ 14,750,000 2015 2016-08 GER #Fintech #InsurTech
Rocketfuel Workfusion Sensoro Netpulse
Axel Springer
NOKIA 9 babel Cedexis Indix Rapidminer Moovit
Cognea acquisition IBM / undisclosed 2013 2014-05 USA #bot

Comma.ai funding A16Z, 1 2 $ 3,100,000 ANGEL.AI2015 Orbeus2016-04 USA #AutonomousCar


AMAZON
Kennet Partners 3 Parracel Rachio
Conversica funding 4 $ 22,000,000 2007 2015-12 USA #Bot
Toba Capital

Cortica funding Horizons ventures NICE 2


2
0
$ 37,900,000
Causata
2007
Nexidia
2014-03 USA #ComputerVision

Softbank, Hon Hai


2 Crosswize Palerra
ORACLE
Precision Industry Co. Ltd.
CouldMinds funding 0 $ 31,000,000 2015 2016-01 USA #Robotics
Walden International

Keytone Ventures

Criteo IPO Public Valuation $ 1,700,000,000 2005 2013-10 FRA #Adtech

Customer #BigData
funding HSCB, Aster Capital 3 $ 16,000,000 2013 2016-01 USA
Matrix #PredictiveAnalytics

Blackstone, Insight

venture, DFJ growth


Cylance funding 4 $ 177,000,000 2012 2016-06 USA #CyberSecurity
Fairhaven Capital, Khosla

ventures
STARTUP
STARTUP TYPE
TYPE INVESTORS N ROUNDS TOTAL FUNDING FOUNDED ON LAST FUNDING COUNTRY INDUSTRY

Dark Blue
acquisition Google / undisclosed 2014 2014-10 UK #DeepLearning #bigdata
Labs

Darktrace funding KKR & Co., Summit Partners 3 $ 104,500,000 2013 2016-07 UK #CyberSecurity

IA Ventures, Intel Capital


Datarobot funding 4 $ 57,420,000 2012 2016-02 USA #PredictiveAnalytics
NEA,TechStars

Deepgram funding Ycombinator, Compound 2 $ 1,920,000 2012 2016-09 USA #NLP #AudioRecognition

DeepMind Acquisition Google / $ 600,000,000 2012 2014-01 UK #AIAAS

#BigData
Deepomatic funding Alven Capital 1 $ 1,000,000 2012 2015-09 FRA
#PredictiveAnalytics

Amazon, Microsoft
Defined #BigData
funding Accelerator 1 $ 1,100,000 2012 2016-09 POR
Crowd #PredictiveAnalytics
Sony, Swan Venture

Digital FinTech Innovation Lab, #BigData


Reasoning funding Goldman Sachs, 6 $ 73,960,000 2012 2016-05 USA #PredictiveAnalytics
Systems In-Q-Tel, Lemhi Ventures, #NLP

DNN #ComputerVision
Acquisition Google / Undisclosed 2012 2013-03 CAN
Research #VoiceReco

Sequoia Capital
Drawbridge funding 3 $ 45,500,000 2012 2016-05 USA #Adtech
Northgate Capital

#BigData
DreamQuark funding /// looking for $ 5,000,000 2012 / FRA
#PredictiveAnalytics

Northern Light VC
drive.ai funding Oriza Venture 1 $ 12,000,000 2012 2016-03 USA #AutonomousCar
STARTUP TYPE INVESTORS N ROUNDS TOTAL FUNDING FOUNDED ON LAST FUNDING COUNTRY INDUSTRY

Emergence Capital #BigData #Analytics


Eversight funding 2 $ 24,200,000 2012 2016-04 USA
Sutter Hill Ventures #Retail

Face.com Acquisition Facebook / $ 60,000,000 2012 2012-06 ISR #ImageRecognition

Chinas Innovation Works

Face++ funding Ignition Partners, Qiming $ 48,000,000 2012 2015-05 CHN #ComputerVision
Venture

Graphcore funding C4 ventures, Samsung, Robert Bosch VC 1 $ 30,000,000 2016 2016-10 UK #Hardware

Upfront ventures, NEA


Gumgum funding First round, Morgan 5 $ 36,830,000 2007 2015-05 USA #Adtech
Stanley

Capital One Growth,


H2O.ai funding Nexus Venture 4 $ 33,600,000 2011 2015-11 USA #BigData

Paxion Capital, #PredictiveAnalytics

icarbonx funding Transamerica Ventures 1 $ 150,000,000 2015 2016-04 CHN #Bigdata #HealthTech
Tencent

Inbenta funding Level Equity 3 $ 13,370,657 2005 2016-04 USA #NLP


InverSur Captital

Indisys Acquisition Intel / $ 26,000,000 2005 2013-09 ESP #NLP #bot

IQ Engines Acquisition Yahoo / Undisclosed 2008 2013-08 USA #AR #ComputerVision

Jetpac Acquisition Google / Undisclosed 2011 2014-08 USA #ComputerVision

LookFlow Acquisition Yahoo / Undisclosed 2009 2013-10 USA #ComputerVision

#ComputerVision
Madbits Acquisition twitter / undisclosed 2013 2014-07 USA
#DataBase

Magic Leap funding Google, Alibaba 3 $ 1,390,000,000 2011 2016-02 USA #AR #ComputerVision
STARTUP TYPE INVESTORS N ROUNDS TOTAL FUNDING FOUNDED ON LAST FUNDING COUNTRY INDUSTRY

Maluuba acquisition Microsoft / undisclosed 2011 2017-01 CAN #NLP

Metamind acquisition Salesforce / $ 32,800,000 2014 2016-04 USA #ImageRecognition

Mist Systems funding GV, Cisco investments 2 $ 42,400,000 2014 2016-10 USA #VoiceRecognition #IoT

funding Google, SIG China, $ 71,620,000 2012 2016-07 CHN #Analytics


Mobvoi 3
Sequoia, Zhenfund
MoneyFarm funding Allianz Ventures, Cabot Square Capital 3 $ 29,810,000 2011 2016-09 UK #Fintech
#WealthManagment
Movidius Acquisition Intel / $ 400,000,000 2006 2016-09 USA #ComputerVision

Nara Logics funding 406 ventures, Peter de Roetth 1 $ 13,000,000 2010 2014-10 USA #AIAAS

Navya funding 360 Capital Partners 3 $ 38,020,000 2014 2016-10 FRA #AutonomousCar

NXT ventures, 1 $ 2,470,000 2013 2016-07 USA #ComputerVision


Netra funding
Launchpad Venture group
Nexidia acquisition NICE Systems / $ 135,000,000 2000 2016-01 USA #AudioVideoRecognition

Pentech ventures, Convoy #Fintech


Nutmeg funding Investment 4 $ 89,830,000 2010 2016-12 UK #WealthManagment
Taipei Fubon bank

nuTonomy funding Samsung 2 $ 19,600,000 2013 2016-05 USA #AutonomousCar


Highland Capital Partners

Oben funding CrestValue Capital 2 $ 7,700,000 2014 2016-11 USA #IoT #VR

Oculus acquisition Facebook / $ 2,000,000,000 2012 2014-03 USA #AR #ComputerVision

Orbeus acquisition Amazon / undisclosed 2012 2015-12 USA #ComputerVision

Ozlo funding Greylock, AME cloud 1 $ 14,000,000 2013 2016-05 USA #Bot #BigData

Palantir funding Kortschak Investments, L.P. 15 $ 1,990,000,000 2004 2015-02 USA #PredictiveAnalytics
STARTUP TYPE INVESTORS N ROUNDS TOTAL FUNDING FOUNDED ON LAST FUNDING COUNTRY INDUSTRY

Pathway funding IBM 1 $ 40,000,000 2008 2016-01 USA #Healthtech


Genomics

Paxata funding Accel Partner, Intel, 4 $ 60,990,000 2012 2016-10 USA #BigData
Microsoft EDB #PredictiveAnalytics
investments

PredictionIO acquisition Salesforce / undisclosed 2013 2016-02 USA #BigData


#PredictiveAnalytics

Preferred funding Toyota, Fanuc 3 $ 17,300,000 2014 2015-12 JPN #IoT


Networks

Playfair Capital 3 $ 5,640,000 2014 2016-09 UK #Fintech #FraudDetection


Ravelin funding
Amadeus Capital

funding Kima ventures & Bas 1 $ 1,120,000 2015 2016-06 FRA #Bot
Recast.AI

IPO Public Valuation $ 942,320,000 2008 2013-09 USA #Adtech


Rocket Fuel

Saffron acquisition Intel / undisclosed 1999 2015-10 USA #ProcessAutomation


technology #BigData

Scaled funding Khosla ventures 2 $ 13,600,000 2014 2014-10 USA #AIAAS


Inference

Sentient Tech. funding Access industries, 3 $ 143,800,000 2007 2014-11 USA #ProcessAutomation
Horizons ventures #AIAAS
Tata Communication

SkyPhrase acquisition yahoo / undisclosed 2011 2013-02 USA #NLP #BigData

SkyTree funding Scott McNealy, UPS, USVP 3 $ 20,500,000 2012 2013-04 USA #BigData #PredictiveAnalytics
Javelin Venture American
Express
STARTUP TYPE INVESTORS N ROUNDS TOTAL FUNDING FOUNDED ON LAST FUNDING COUNTRY INDUSTRY

Wit.ai Acquisition Facebook / undisclosed 2013 2015-05 USA #bot

X.AI investor funding Two Sigma Ventures, 3 $ 34,300,000 2014 2016-04 USA #PersonalAssistant
FirstMark Capital
IA ventures, SoftBank
Capital

Zero zero funding IDG, GSR Ventures 2 $ 25,000,000 2014 2016-04 CHN #drone #ComputerVision
robotics ZhenFund & ZUIG

Zoox funding Lux capital 3 $ 290,000,000 2014 2016-10 USA #AutonomousCar


Draper Fisher Jurveston

Zymergen funding Data collective, SoftBank 3 $ 174,140,000 2013 2016-10 USA #Robotics
#BioInformatics
#BigData

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