A Scaling Perspective on AI Startups

Mattias Schulte-Althoff, Daniel Fürstenau, Gene Moo Lee

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Abstrakt

Digital startups’ use of AI technologies has significantly increased in recent years, bringing to the fore specific barriers to deployment, use, and extraction of business value from AI. Utilizing a quantitative framework regarding the themes of startup growth and scaling, we examine the scaling behavior of AI, platform, and service startups. We find evidence of a sublinear scaling ratio of revenue to age-discounted employment count. The results suggest that revenue-employee growth pattern of AI startups is close to that of service startups, and less so to that of platform startups. Furthermore, we find a superlinear growth pattern of acquired funding in relation to the employment size that is largest for AI startups, possibly suggesting hype tendencies around AI startups. We discuss implications in the light of new economies of scale and scope of AI startups related to decision-making and prediction.
OriginalsprogEngelsk
TitelProceedings of the 54th Hawaii International Conference on System Sciences
Antal sider10
UdgivelsesstedHonolulu
ForlagHawaii International Conference on System Sciences (HICSS)
Publikationsdato2021
Sider6515-6524
ISBN (Elektronisk)9780998133140
DOI
StatusUdgivet - 2021
BegivenhedThe 54th Hawaii International Conference on System Sciences. HICSS 2021 - Online, Virtual, Online, USA
Varighed: 5 jan. 20218 jan. 2021
Konferencens nummer: 54
https://www.insna.org/events/54th-hawaii-international-conference-on-system-sciences-hicss

Konference

KonferenceThe 54th Hawaii International Conference on System Sciences. HICSS 2021
Nummer54
LokationOnline
LandUSA
ByVirtual, Online
Periode05/01/202108/01/2021
SponsorThe Nordic Sociological Association
Internetadresse
NavnProceedings of the Annual Hawaii International Conference on System Sciences
ISSN1060-3425

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