AI will unleash a new wave of disruptive innovation as it will transform many industries. COVID-19 has arguably accelerated the adoption of new technologies, notably cloud, which will create potentially deeper data pools on which artificial intelligence (AI) can be deployed. Deep learning is a form of artificial intelligence inspired by the human brain. Software for deep learning is not “written“ but is “trained“. With deep learning, machines do not need a programmer to tell them what to do. Instead, the machines use data to train themselves. Humans create AI models and gather labeled data. The software then learns the right behaviors, improves with more data, and often exceeds human performance. Deep learning is powering the next generation of computing platforms, which will transform every industry.
Hardware and software improvements reduced the cost to train neural networks for deep learning by roughly 100x in 2019-2020. As a result, AI capabilities are multiplying as models are trained with 10x more computing power each year.
A few examples of AI applications today are:
Big data based decision making is a new trend in the corporate world. Predictive data analytics using AI algorithms are becoming a key source of competitive advantage for the leaders of the future. The company in our portfolio, Alteryx, has introduced machine learning and natural language processing solutions, which is a breakthrough technology for citizen data scientists (those who need or use data analytics, but who do not have formal data science training).
Level 5 automation (the highest level) in vehicles is expected to become a reality with fully autonomous driving enabled systems generally available by 2025. As of today, Waymo vehicles have already traveled more than 20 million fully autonomous miles.
AI is expanding from vision to language. 2019 was the year when the conversational AI was born. For the first time, AI systems could understand and generate language with human-like accuracy. Conversational AI requires 10x the computing resources of computer vision and should spur large investments in the coming years.
TikTok uses deep learning for video recommendations.
Many companies in our portfolio have an exposure to AI technologies.
More specifically, we have made the following investments in the AI segment:
Chinese internet giant Baidu has transformed itself from online search company to AI technologies incubator:
The company said on Aug 18, 2021, that it had begun mass-producing second-generation Kunlun artificial intelligence (AI) chips, as it races to become a key player in the chip industry which Beijing is aiming to strengthen.
Baidu’s IoV (Internet of Vehicles) system DuerOS is the No.1 player in China with 49% market share in 2020. DuerOS is an AI conversational platform that is powering the voice interface in various smart devices. Intelligent driving will gradually become a key share price factor over the mid-to-longer term.
Apollo autonomous driving has entered the driverless testing stage. Robotaxis, Apollo L4 autonomous driving vehicles, have started operations in selected cities offering public ride hailing services.
Swedish company Artificial Solutions is one of the leading vendors of conversational AI technology and is well-positioned for significant growth. AS has blue-chip customers such as AT&T, Shell, and Vodafone and its partner network of leading system integrators (including Accenture, Deloitte, and KPMG) has validated the technology.