How Midsize Companies can compete in AI
Ways midsize firms can pool data and talent in joint AI ventures
The move towards AI-powered startups and mid-size businesses continues to grow rapidly, as companies leverage AI's capabilities. There seem to be two key streams of companies who appear well-positioned to explore AI and the impact on their business: startup ventures and multi-billion dollar giant corporations.
In a recent article by Harvard Business Review (HBR), they outline some of the ways in which AI ventures can help to support midsize companies.
If a midsize business wants to thrive in the AI era, it will need to evaluate the new ways in which it can become more competitive. This might include some options that have not yet been considered. Three examples HBR provides include:
1. Source cross pool data. By sourcing and organising data from multiple sources, mid-size companies are able to train and deploy machine learning (ML) algorithms for a variety of applications.
2. Source an in-house team of experts trained in AI to develop unique solutions. This is to help prevent putting long-term value creation.
3. Connect to an AI-focused CVC fund. This helps midsized firms to pool financial resources as well as technical and business expertise to scan and invest in the AI startup scene.
By offering access to an interconnected network of firms, rather than just a single firm, these joint ventures may also be more interesting partners for startups seeking financial and complementary resources.