Some call it an artificial
intelligence (AI) revolution.After years
of slow but steady progress on making computers “smarter” at everyday
tasks, a series of breakthroughs in the research community and industry
recently spurred momentum and investment in the development of AI.In the U.S., there are at least 1,500
start-ups processing languages, identifying images, filtering ads for
solicitation, detecting flaws in security systems, offering real-time
analytics for finance professionals, and analyzing data for e-commerce
brokers.
Healthcare and advertisement are the most common areas in the AI
industry, followed by business intelligence, security, finance, the
internet of things (IoT), wearables, education, customer relationships
management, e-commerce, and robotics.In
healthcare, the President’s Precision Medicine Initiativewill rely on AI to find patterns in medical data and,
ultimately, to help doctors diagnose diseases and suggest treatments to
improve patient care and health outcomes.In
education,
AI has the potential to help teachers customize instruction
for each student’s needs. Start-ups and
larger companies around the nation are constantly engaged in Research
and Development efforts aimed at solving these and similar
challenges.When they create code, develop
algorithms, troubleshoot software, and perform technical experiments,
they may be eligible for federal and state Research and Development
Tax Credits which are available to stimulate innovation.
The Research
& Development Tax Credit
Enacted in 1981,
the Federal Research and Development (R&D) Tax Credit allows a
credit of up to 13 percent of eligible spending for new and improved
products and processes. Qualified research must meet the following four
criteria:
New or improved
products, processes, or software
Technological
in nature
Elimination of uncertainty
Process
of experimentation
Eligible costs include employee wages, cost of supplies, cost of
testing, contract research expenses, and costs associated with
developing a patent.
On
December 18, 2015 President Obama signed the bill making the R&D
Tax Credit permanent.Beginning in 2016,
the R&D credit can be used to offset Alternative Minimum tax and
start-up businesses can utilize the credit against $250,000 per year in
payroll taxes.With the new legislation
and given the technical nature of AI, almost all AI start-ups will be
eligible for the credit.Figure 1 below
shows the potential value of R&D tax credits across an estimated
1,500 nationwide AI start-ups.As shown in
the chart, it is typical for each technical employee to generate around
$4,800 in R&D tax credits.
Figure 1:
AI Industry Potential R&D Tax Credit
Benefits
Artificial Intelligence
Artificial intelligence technology is being used in
a number of applications. start-ups use machine learning and data
mining techniques to process different data that can be used to manage
money, connect people with similar interests, identify faces, and much
more.Online advertisers use it to
intelligently market to customers.E-commerce
and
technology companies, such as Braintree Solutions LLC (in Chicago),
use machine learning in conjunction with other tools to prevent credit
card fraud. Also, e-mail providers use machine learning algorithms to
identify spam.Cutting-edge start-ups are
increasingly finding novel ways to apply machine learning tools to
solve problems across different industries. Some of these start-ups and
machine learning applications they are developing are outlined in this
article.
California
AI Start-Ups (Silicon Valley)
6Sense Insights Inc.
6Sense
Insights Inc., located in San Francisco, California, provides a
predictive intelligence platform that helps B2B marketing and sales
leaders identify market prospects based on data science and
time-sensitive intelligence. Their software provides insight into who
is in the market to buy, what products they are buying, when they will
buy, and where they are in the buyer’s journey.
Sentient Technologies Holdings Limited Sentient Technologies Holdings Limited is a San
Francisco-based intelligent Systems Company focused on building unique
intelligent capabilities in deep learning to solve real-world problems
in industries such as e-commerce and healthcare.
Ayasdi, Inc. Ayasdi, Inc. in Palo Alto, California is an advanced
analytics company that offers a machine intelligence platform and
intelligent applications to Global 500 corporations, governments, and
scientific research institutions around the world. Clients use the
Ayasdi platform to solve their big data and complex data analytics
challenges and to automate formerly manual processes using their own
unique data. The secret behind Ayasdi's machine intelligence platform
is Topological Data Analysis (TDA). The company describes TDA as the
most powerful technique developed for advanced analytics of big and
complex data.
Botanic LLC
Botanic LLC in Emeryville, California designs and
builds products that are capable of understanding and responding to
human speech (not just text or words without context).People’s actions are better predicted in the context of their
feelings and attitudes than through text alone.Botanic
machines
capture a user’s tone of voice, facial expression, body
language, and nuances in word choice.Botanic
characters
use speech and animation to provide contextually and
emotionally appropriate responses to human input. Vicarious FPC
Vicarious FPC, Inc., based in Menlo Park, California,
develops artificial intelligence algorithms that mimic the human brain.
Currently, they are focused on visual perception problems, such as
recognition, segmentation, and scene parsing.The
company
is interested in general solutions that work well across
multiple sensory domains and tasks.
H2O.ai
H2O.ai in Mountain View, Californiaoperationalizes data science by developing and deploying
algorithms and models. Some of H2O’s mission critical applications
include predictive maintenance, operational intelligence, security,
fraud, auditing, churn, credit scoring, user based insurance,
predicting sepsis, ICU monitoring, and more in over 5,000 organizations.
Viv Labs, Inc.
Viv Labs, Inc. in San Jose,
California develops an artificial intelligence interface that enables
users to interact with devices, services, and other platforms for
individuals. The AI platform enables developers to distribute products
through an intelligent, conversational interface.
Infer Inc.
Infer Inc. is a Mountain View, California-based company
that delivers data-powered business applications that help companies
gain more customers. Its cloud-based solutions leverage proven data
science to rapidly model untapped data sitting in enterprises, along
with hundreds of external signals from the web.
MindMeld Inc.
MindMeld Inc. is a San Francisco-based company that
powers a new generation of intelligent conversational interfaces.After 3 years of technological development and
10 patents, MindMeld launched its core offering, the MindMeld platform,
in 2014. MindMeld is the first platform that makes it possible for
companies to create intelligent, conversational interfaces for any app
or device. MindMeld has been widely recognized as a leader in the field
of natural language understanding and was named by MIT Technology
Review as one of the world's "50 Smartest Companies" in 2014.
Mintigo
Inc. Mintigo Inc. is a San Mateo, California-based company
that provides cloud-based predictive marketing platform for marketers.
The company also offers predictive lead scoring models to identify
sales-ready leads or potential buyers and predictive lead scoring and
data enrichment.
Skytree Inc.
Skytree Inc. in San Jose, California is a leading
enterprise-grade machine learning platform for big data. The technology
allows users to leverage investments in big data by installing on
existing infrastructure and implementing a platform that includes data
preparation, automated machine learning model building, and easy model
deployment.
Sense.ly
Sense.ly is Inc. is a San Francisco-based healthcare
start-up that helps doctors reach patients through bots and sensors.
Typically utilizing smartphones, this maximizes time and minimizes
dollars, all while optimizing patient health.Its
solutions
help keep medical patients engaged as they communicate their
symptoms, medical history, and recovery progress on mobile phones.
Anki
Anki is a San Francisco,
California-based company that builds on decades of scientific research
to make AI accessible to everyone.
Cloudminds Cloudminds is a Santa Clara,
California-based AI company that uses a cloud-enabled intelligence
engine and a network of mobile sensors to enable intelligent cloud
robots.
Preferred Networks Inc.
Preferred Networks Inc.
is a San Mateo, California-based AI company that develops deep learning
technology that perceives, integrates, understands, and analyzes
diverse types of sensor data at levels beyond human abilities.
Scaled Inference, Inc.
Scaled Inference, Inc. is a Palo
Alto, California-based AI company that uses AI as a cloud service to
enable a new generation of intelligent software built by the masses and
powered by an open shared platform.
Inbenta
Technologies,
Inc.
Inbenta Technologies Inc. in San Francisco, California
provides natural language processing and semantic search services. The
company offers support services such as dynamic FAQs, knowledge
management, virtual assistance, business website searches, e-commerce
conversions, and customer self-service. StatMuse Inc. StatMuse Inc. develops and markets a cloud-based
platform to analyze sports statistics. This San Francisco start-up
allows users to search for sports facts and statistics through ordinary
“natural” language.
Entefy Inc.
Entefy Inc. is a Palo Alto,
California-based start-up that provides communication and digital
interaction solutions. They offer a Universal Interaction Engine—a
context-aware message and data delivery technology platform that
provides access to various conversations and connections across smart
devices.
Jolata, Inc.
Jolata, Inc., in San Francisco, California is a
real-time big data analytics software company that helps large network
operators visualize and optimize their global networks.
New York AI
Start-Ups (Silicon Alley)
Fuse Machines Inc.
Fuse Machines Inc. is a NYC-based
start-up that helps inside sales teams sell more by applying AI,
natural
language processing, and Machine Learning.
Persado Inc.
Persado Inc. is a NYC-based AI company that develops a
cognitive content platform—a smart system that combines natural
language processing and machine learning technologies to machine
generate precise words, phrases, and images that inspire any given
audience to act every time.
X.ai Inc.
X.ai Inc. in NYC builds and operates an AI personal
assistant that schedules meetings using email for business customers.
Wade & Wendy Inc.
Wade & Wendy Inc. is a NYC-based AI powered
platform for the recruiting space.Wade is
an AI career assistant, helping people navigate their careers and
discreetly learn about new job opportunities.
Eclipse
Market
Solutions LLC
Eclipse Market Solutions LLC is a NYC-based AI start-up
that provides customized services to help clients simplify trading.
They offer trading software solutions, risk management consulting,
strategy analysis, position evaluation, and financial modeling. Intelligent Artifacts, LLC
Intelligent Artifacts, LLC is a
NYC-based AI start-up that provides a cloud-based or on-premises
environment for quickly creating and deploying machine intelligence.
The company guides their customers, helping them integrate or embed
their technology in their products and services. Digital Genius Limited
Digital Genius Limited is a
NYC-based AI company that brings practical applications of artificial
intelligence into the customer service operations of global companies.
Its Human+AI Customer Service Platform combines the best of human
intellect and AI, enabling companies to live up to and exceed rising
consumer expectations.
Flatiron Health Inc
Flatiron Health Inc. is a NYC-based AI company that
organizes the world’s oncology information and makes it useful for
patients, physicians, life science companies, and researchers. Their
technology connects community practices and cancer centers on a common
technology infrastructure to address key healthcare challenges. Their
goal is to power a national benchmarking and research network to
transform how cancer care is delivered.
AI Cure Technologies, LLC
AI Cure Technologies, LLC in NYC uses AI in mobile
devices to confirm medication ingestion in clinical trials and
high-risk population.
AskTina
AskTina is a NYC-based AI
company that develops technology to significantly reduce the amount of
time an entrepreneur spends recruiting and managing virtual assistants.
Hyperscience
Hyperscience is a NYC-based AI
start-up that builds general purpose AI platforms for other developers
to easily build machine learning applications.
Mobile ROI
Mobile ROI is a NYC-based AI
start-up that develops marketing automation software to contextually
engage, educate, reward, and delight at every touch point along the
customer journey. Customer Matrix Inc.
Customer Matrix Inc. is a
NYC-based AI company that brings the power of cognitive computing to
organizations.Its technology serves on
the front line of sales and customer service excellence. It is ideal
for converting up-selling, cross-selling, and churn risk reduction in
today's competitive markets.
Massachusetts
AI
Start-Ups (Rt.128)
DataRobot
DataRobot is a Boston, Massachusetts-based AI company
that develops data science and machine learning platforms for business
analysts, expert data scientists, software engineers, and IT/Data
professionals.
Affectiva Inc.
MIT-spinoff, Affectiva
Inc., is a Waltham, Massachusetts-based company that offers emotion
recognition technology based on patented science that uses deep
learning.As of this writing, the
technology analyzed over 4.5 million faces, comprising of the world’s
largest emotion data repository. This helps Affectiva to derive unique
insights with high accuracy.
Nara Logics Inc.
Nara Logics Inc. in
Boston, Massachusetts is a “synaptic intelligence” company.Synaptic
intelligence is a branch of AI that combines neuroscience and computer
science. The companies’ synaptic intelligence is a solution to make
context-sensitive adjustments to recommendations in order to help
companies make smarter decisions.
North
Carolina AI Start-Up (Research Triangle)
Automated Insights Inc.
Automated Insights Inc. is a
Durham, North Carolina-based company that automates and expands the
production of content and communicates it in ways never before possible.They offer the only open Natural Language
Generation API. By leveraging speed and scalability, users can deliver
personalized content instantly to millions of people, each one uniquely
tailored to the reader.
Miami AI
Start-Ups
Magic Leap Inc. Magic Leap Inc. isa
Miami, Florida-based AI start-upthat is
working on a head-mounted virtual retinal display. This superimposes 3D
computer-generated imagery over real world objects by projecting a
digital light field into the user's eye.
Cylance Inc.
Cylance Inc. in Miami,
Florida is one of the fastest growing companies in the history of
cybersecurity. The company applies AI and machine learning to crack the
DNA of malware.
Albsbridge, Inc.
Albsbridge, Inc. is a Miami,
Florida-based AI start-up that uses AI technology to source
relationships and client advocacy. Care Angel Inc.
Care Angel Inc. is a Miami,
Florida-based AI start-up that develops a remote monitoring and data
analytics platform to help caregivers and seniors live as best a life
as possible.
Seattle AI
Start-Ups
Ozlo Ozlo
is a Seattle, Washington-based personal AI machine that makes finding
information from smart phones faster and easier.
Tijee Corporation
Tijee Corporation is a Seattle,
Washington-based AI start-up that builds cutting edge solutions for the
next generation of smart home systems. With the technology, homes can
interact with their owners in an intelligent way.
Cyntient Inc.
Cyntient Inc.is a
Seattle-based software development company whose innovative AI solution
opens the door to create a gaming experience enlivened by virtual
characters that analyze, react to, and learn from their environment,
each other, and the player's behavior.
The Allen
Institute for Artificial Intelligence
The Allen
Institute for Artificial Intelligenceis a
research institute funded by Microsoft co-founder Paul Allen to achieve
scientific breakthroughs. They construct AI systems with reasoning,
learning, and reading capabilities.Some
of the ongoing projects at the incubator are listed below.
Aristo
Aristo is a system that
acquires and stores a vast amount of knowledge in computable form, then
applies this knowledge to answer a variety of science questions from
standardized exams for students in multiple grade levels.
Semantic Scholar
Semantic Scholar leverages AI expertise to help
researchers find the most relevant information efficiently. The
technology utilizes methods from data mining, Natural-Language
Processing, and computer vision to create powerful new search and
discovery experiences.
Project Plato
Project Plato is focused on extracting visual knowledge
from images, diagrams, and videos to enrich knowledge bases that are
conventionally derived from textual resources. Euclid
Euclid is AI technology designed
to solve math problems, specifically in geometry.One
application
being developed is GeoS—an end-to-end system that solves
high school geometry questions. Its input is question text in natural
language and diagram in raster graphics, and its output is the answer
to the question.
Tennessee AI
Start-Up
Digital Reasoning Systems, Inc. Digital Reasoning Systems, Inc. is a Franklin,
Tennessee-based cognitive computing company that offers services to
intelligence agencies and financial institutions in the United States.
At Digital Reasoning Systems, Inc, engineers create technology that
learns and gets smarter with the goal of helping humans see the world
more clearly to solve some of the most difficult worldly problems.
Technological
Challenges
All the
previously mentioned start-ups work to solve technological challenges
in the AI industry.Although improvements
in computing power and big data analysis have opened the door for major
innovations in the field of AI, such advancements also gave rise to the
concern of extraneous information or “noise,” distorting the accuracy
of predictive models.
Developing and refining algorithms is another
technological challenge. Engineers and computer scientists routinely
experiment with different algorithm sets in order to flush out
meaningful results from noise. The goal is to flush out the types of
algorithms and dataset combinations that are good at picking out the
structure of the problem so they can be studied in more detail with
focused experiments. Those top performing algorithms are then refined
to be more efficient, a process known as algorithm tuning.
Another issue common to the industry is the slow
process involved with the data modeling stage. This stage requires data
scientists to iterate multiple data models and run them against
historical datasets to identify the most accurate predictive models.But the process is so slow that computer
scientists often spend downtime by exercising, napping or leaving the
office.
Some
innovators, such as Skytree Inc. in San Jose, California, are trying to
automate the process.They recently
released Skytree 15.1, a product aimed at doing just that. Martin Hack,
chief product officer at Skytree, said about the technology, “In data
science, creating models is an iterative process.You
create
models, run them, compare the results against historical
accuracy, and then put the most accurate into production. So there are
usually three steps: train, tune and test. What we have done is combine
this into one. It’s potentially a huge time-saver for data scientists,
and reduces time-to-market for data models.”
Conclusion
Artificial
intelligence (AI) is a quickly emerging technology.Advancements in this field can solve a number of technological
challenges. Engineers and computer scientists are constantly making
developments within this sector. start-ups and established companies
may be eligible for federal and state Research and Development
(R&D) tax credits which are available to stimulate innovation.
