Reference no: EM133298657

AI and usage of big data are ever present in society and growing and revolutionizing the business today. AI is being used in every business sector from market insights, customer and financial modeling in analytics, and risk management and fraud pre- vention. Venture capital and investment firms are able to assess company data through brand new ways that were not available to them before such as sales projec- tions and market potentials to better evaluate their risks and discover business opportunities. Here we provide the first case showing how AI is powering business and investment.

CBinsights is one of the major technology and innovation consulting companies that develop AI applications in marketing research. Businesses in different indus- tries can pay CBinsights in return for one of their products or services that they provide. A few of these services include industry analytics, patent analytics, market sizing, market map makers, etc. CBinsights uses machine learning, data mining, and algorithms to make strategic decisions about the market.

They collect data concern- ing market size and related markets to give other businesses an idea of which mar- kets are growing, which ones are going down, and in which markets people are spending their money. This helps businesses get a better understanding of the poten- tial opportunities for market expansion. This also lets them know in which markets they should be investing more of their time and money. They collect data about investments, which helps them understand which markets look promising. Finally, they collect data about emerging markets, financial trends, and emerging AI startups so they can see which businesses could potentially start partnerships.

The way CBinsights processes this data is innovative. They receive 70% of their data from algorithms and the other 30% comes directly from investors. All of this data that they receive is unstructured data, meaning that there is a bunch of different data, and it is not organized. CBinsights then takes this data and uses machine learn- ing, data mining, and algorithms to transform this data into structured data. The structured data is the output, and it includes company names, investor names, dates, amounts of funding, patents, etc. (Company Mosaic). CBinsights uses many differ- ent AI technologies to process their data. Some of these technologies include machine learning, data mining, algorithms, market analytics, predictive analytics, and data visualization. All of these AI technologies are used to process and structure data that fits the customers' needs. CBinsights claims that its secret weapon has been Mosaic, which is a series of proprietary machine learning algorithms devel- oped with initial support from the National Science Foundation (NSF). NSF grants totaled about one million from 2011 to 2013. The Mosaic algorithms would aggre- gate and synthesize information from disparate sources and programmatically assess the health and likelihood of future success of emerging high-tech startups. The Mosaic algorithms evaluate the companies using the 4 Ms:

Question 1 Momentum - how much traction does the company have?

Question 2. Market - how healthy is the industry the company is in?

Question 3. Money - what is the financial health of the company?

Question 4. Management - who are the leaders of the company?