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The world of entrepreneurship has undergone enormous changes with the advent of artificial intelligence. The numbers say a lot. In 2023, AI startups around the world raised an impressive $50 billion. And in the first quarter of 2024, they have already raised $11.4 billion, which is roughly 17% of total global funding.
Investors definitely have a soft spot for AI, which explains why it continues to draw massive funding during the enterprise capital winter. It’s no wonder that during Y Combinator’s 2024 demo days, as many as 172 of 247 projects involved artificial intelligence.
Artificial intelligence boom – from area of interest to necessity
Artificial intelligence has come a great distance since its days in science fiction and academia. What was once considered area of interest and impractical has grown into a huge industry. Whether it’s voice-activated assistants on our phones or advice algorithms that help us shop online, artificial intelligence is now an essential a part of our routines.
Generative AI is a hot topic with user-friendly programs like Google Gemini (formerly often called Bard) and ChatGPT OpenAI. This increase in popularity is expected to occur rocket generation AI market to as much as $1.3 trillion by 2032, up from a modest $40 billion in 2022.
But it is not just for consumer products – in highly regulated sectors like healthcare, finance and government services, generational AI is opening up unprecedented opportunities for task automation and data synthesis. Take the example of HCA Healthcare, one of the world’s largest healthcare providers by accelerates the strategy of preparing medical documentation. And Moody’s, the credit standing agency, yes unfolded its Gen AI research assistant, which helps clients discover latest insights from credit research, data and analytics.
Startups are desirous to leave their mark and introduce innovations. According to TracxnThere are over 67,000 AI and machine learning projects worldwide, in addition to more established AI corporations. The next wave of players in the AI support market is already here emerging. Startups help train, deploy and evaluate large-language models, and solve critical AI problems, from stopping hallucinations to solving ethical dilemmas.
The most significant query is: the right way to stand out among the sea of competitors and avoid getting lost in the crowd?
PR traps to avoid in a crowded market
Effective public relations has proven to be a decisive factor for AI projects in a hyper-competitive environment. Yet despite its importance, many startups miss the PR mark, unwittingly sabotaging their efforts to draw and retain customers. These are the commonest mistakes they make.
1. Putting all the eggs in the product basket
Having cutting-edge technology is not enough to ensure success. Startups often assume that their product will naturally speak for itself. Sure, having a great AI solution is crucial. However, neglecting the importance of strategic promotion and branding could be a costly oversight.
To gain attention, AI projects should play a leading role in connecting with their goal audiences. This means reaching potential customers through various channels, comparable to social media, Product Hunt platforms and popular media, including: Forbes, TechCrunch, Entrepreneur and many others.
But that is not the end. In a truly competitive environment, it is important to face out from the crowd. Following the standard procedure as everyone else won’t be fair to your offer. An effective solution to stand out is not only to develop your organization’s brand, but also your individual personal brand as a founder. Your status is the basis of your influence, which may sometimes be more essential than the product itself when it involves attracting investors or partners.
2. Neglecting audience evaluation
Another common mistake that many AI startups encounter is forgetting to personalize communications for different audiences. Some designs take a “one size fits all” approach, hoping to catch everyone’s eye. However, this broad strategy often dilutes the message and misses opportunities to attach with potential customers and investors.
Imagine there is a startup developing AI-based chatbots that aim to serve each businesses and individual users. However, in their PR activities they only talk about creating personal content. They miss corporations by not emphasizing how their product can assist prepare marketing strategies and descriptions. Similarly, some AI projects may use complex jargon that only appeals to technology enthusiasts, quite than creating compelling narratives that may appeal to on a regular basis users.
To avoid falling into this trap, market players must conduct thorough research, segment their audiences based on relevant criteria comparable to industry, demographics and hotspots, and adapt their PR strategies accordingly. As I discussed in one other article, think of your enterprise like a Rubik’s Cube. Like different colours of a cube, your enterprise could be presented from different angles to fit your audience. Always be able to adapt and roll the dice.
3. Launching PR campaigns prematurely
In PR, time counts. Starting too early may do more harm than good. In fact, a common mistake of startups is to launch media campaigns when they are still in the early MVP stage, because they often do not meet the expectations of consumers and investors. As a PR skilled, I often see corporations struggle to provide me answers about their business, even if it’s for their very own good. Journalists, partners, investors and end users who have different goals and standards are much more demanding to satisfy.
Let’s consider an example. Krutrim AI recently unveiled the beta version of its much-awaited LLM and AI assistant just like ChatGPT but with a focus on Indian culture. AI chatbot coming soon he faced criticism from users who found inaccuracies in answers ranging from general queries to translations, math problems and logical reasoning. Bot even taken over is expected to be produced by OpenAI, with the company attributing these issues to problems in the training dataset.
Founder Krutrim has a proven track record of success and has already founded two unicorns in India: Ola Cabs and Ola Electric. It is highly likely that the company will improve its model and address any concerns raised. This might not be the case for smaller AI startups. It’s higher to attend until you have built a solid foundation with clear positioning, robust processes and, ideally, tangible results before diving into PR.
4. Over-hyped and under-executed
In the race to draw attention and secure funding, some AI startups are likely to exaggerate their products and capabilities, making big guarantees they cannot actually back up. This often results in disappointment among customers, investors and stakeholders when the startup is unable to satisfy expectations.
Last 12 months, Inflection AI managed to boost over $1 billion at a $4 billion valuation, with support from heavyweights comparable to Bill Gates, Eric Schmidt and Nvidia. Inflection’s flagship product was Pi, an artificial intelligence chatbot designed to offer consumers with emotional support and advice. However, the rumors are out now swirl that the startup would abandon the Pi lower than a 12 months after its launch. It appears that the company has not been in a position to deliver on its guarantees.
Sometimes it is higher to take a more cautious and transparent approach to communication. Instead of creating lofty claims, focus on highlighting real achievements and milestones. By acting truthfully and directly, startups can build trust with audiences and investors, providing a more sustainable path to success.
5. Ignoring AI ethics and data privacy
In a world powered by artificial intelligence, ethics and data privacy are more essential than ever. We’ve even seen the rise of organizations like Israel Association for Ethics in AIthat work with researchers, developers, policymakers and on a regular basis users to make sure responsible innovation.
Unfortunately, not all AI startups are giving these issues the PR attention they deserve. This oversight can result in serious consequences, including reputational damage and legal problems. Whether it’s mishandling personal data or failing to think about ethical implications, negligence can drive away potential customers.
Take, for example, OpenAI, which is currently facing legal challenges. Lately, New York Times defendant them for copyright infringement. They too procedure with tons of lawsuits from authors, artists, record labels and others. Even one claims that the company improperly obtained vast amounts of private data, comparable to medical records and information about minors, in order to coach its ChatGPT model.
To avoid such risks, compliance and ethical conduct must be considered top priorities for AI projects. Following guidelines and demonstrating a commitment to responsible AI development is one of the key aspects for long-term success in a complex AI environment.
Looking to the future
AI startups may face tougher challenges challenges in the near future. Some leaders in the field are starting to wonder if the industry is overrated because only a few corporations have managed to build profitable businesses. In times of uncertainty, effective PR can change into the deciding factor between success and failure.
By avoiding common pitfalls and employing strategic promotion strategies, AI startups can increase their visibility, attract each customers and investors, and ultimately gain a competitive advantage in the market. Ultimately, it’s about showing the world what makes you and your AI solution stand out.