I came across a staggering prediction recently: 99% of AI startups will be dead by 2026. That’s a bold claim, but is it really that far-fetched?
The truth is, the AI startup landscape is crowded, and many of these companies are built on shaky ground. In this post, I’ll explore why most AI startups might not make it to 2026.
## The AI Hype Cycle
We’ve seen it before: a new technology emerges, and suddenly everyone wants in. The problem is, many AI startups are more focused on the hype than the substance. They’re built on buzzwords and promises rather than real solutions.
## Lack of Real-World Impact
Most AI startups are trying to solve problems that don’t really exist. They’re creating AI-powered solutions in search of a problem, rather than the other way around. This means their products often lack real-world impact, making it hard for them to gain traction.
## Overemphasis on Tech, Not Enough on Business
Ai startups often focus too much on the tech and not enough on the business side of things. They forget that, at the end of the day, a company needs to make money to survive. Without a solid business model, even the most impressive tech won’t save them.
## The Coming Crash
So, what happens when the AI bubble bursts? Unfortunately, it means most of these startups will fail. The ones that survive will be those that focus on real problems, have a solid business model, and can adapt to changing circumstances.
## The Silver Lining
While the failure of most AI startups might seem like a negative, it’s actually an opportunity. It means the remaining companies will have to focus on real innovation, rather than just chasing hype. In the end, this will lead to better AI solutions that truly make a difference.
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*Further reading: The original Medium article*