Finding the Goldilocks Zone for Applied AI

While Elon Musk and Mark Zuckerberg debate the dangers of artificial general intelligence, startups applying AI to more narrowly defined problems such as accelerating the performance of sales teams and improving the operating efficiency of manufacturing lines are building billion-dollar businesses. Narrowly defining a problem, however, is only the first step to finding valuable business applications of AI.

To find the right opportunity around which to build an AI business, startups must apply the “Goldilocks principle” in several different dimensions to find the sweet spot that is “just right” to begin — not too far in one dimension, not too far in another. Here are some ways for aspiring startup founders to thread the needle with their AI strategy, based on what we’ve learned from working with thousands of AI startups.

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