- VC experts predict more specialized models and ethical focus.
- Apex’s Andreas Riegler expects industry-specific AI where it adds clear value as broad chatbots face data constraints.
- Startups addressing compliance and transparency may benefit from the trust they inspire.
AI startups navigate a changing landscape in 2024
While venture investment ebbs, AI startups stayed somewhat insulated in 2023, raising $58 billion globally.
Europe carved out an especially vibrant space, scoring mega-rounds for players like France’s Anthropic rival Mistral.
However, experts told BI that 2024 may prove to be a year of pivots and changing dynamics after the exuberance of generative models like ChatGPT.
Apex Ventures’ general partner, Andreas Riegler, expects more industry-specific AI targeting discrete tasks in finance or manufacturing where it can add clear value.
Broad “horizontal” chatbots require so much data that impending regulations could constrain them.
Rising trends: Specialized AI and compliance
Indeed, startups like Cradle, Orbital Witness, and Aindo are emerging to tackle specialized problems with AI across sectors like biotech, property, and communications.
The eye-popping rounds minting new AI giants could also dry up as sovereign funds cool investing due to political sensitivities, said Blossom Capital’s Imran Ghory.
Eight Roads Ventures Europe partner Alston Zecha notes that “new categories and use cases will emerge quickly” to replace fading niches.
In 2024, European regulators plan to implement the AI Act governing responsible development.
Runa Capital’s Maxime Corbani subsequently expects startups to address compliance to attract investor interest.
Europe’s AI scene set for a shakeup
Firms focused on transparency and open-source access may similarly thrive as barriers emerge to closed AI systems, benefiting from the trust they inspire.
Europe’s AI landscape appears set for a shakeup, possibly defined by specialization and ethics as much as raw technological prowess.
