In the recent past, both Crowdfunding and Artificial Intelligence (AI) development, have been touted as industries that could change the world. And it appears that they are doing so – albeit, at their own pace.
For Crowdfunding, that change is in the way people fund businesses, donate to charity and find the perfect investment on their own terms. When it comes to AI, it’s an industry that’s moving forward all the time. Think the Internet of Things (IoT), big data processing in financial services and online customer service.
But now, as both industries grow in maturity, is it time for two of the world’s most significant disruptors to work together?
How AI Can Be applied to Crowdfunding Platforms
Crowdfunding sits very much in the financial services industry – an industry that AI already features in, pretty heavily. Not only have developments in AI helped financial services firms manage huge swathes of data, efficiently and diligently. But, looking forward, there’s clearly a bigger place for AI when the new General Data Protection Regulation (GDPR), comes into force in 2018.
With all that in mind, it seems that if there’s a way to incorporate AI into a crowdfunding platform, then it should be done. Ways this can be done right now include:
- Pitch Assessment
AI programs can be used to make assessments of new pitches more uniform and completed more quickly.
- Detect Fraud
AI programs designed to detect fraud in larger financial services businesses, could perhaps be adapted to identify dishonest potential crowdfunding hopefuls.
- Data Management
AI already helps financial services firms handle and analyse huge datasets, which means this capability can be transferred into Crowdfunding platforms, too.
- In a way that’s unique to your Crowdfunding platform
because AI is an industry that’s developing all the time, the options for the future are, quite literally, endless.
- To ensure a seamless user experience,
AI could be used to simplify predictive analysis and investment calculations. This leads to more informed decision making and can help keep a strong brand image front and center.
AI and Crowdfunding Make Good Bedfellows in Other Ways, Too
Making elements of existing AI tech, work for Crowdfunding is only one way in which the two could complement each other. AI is still developing and as such, many products, programs and uses are new, never seen before ideas. And that makes many AI ventures the perfect candidate to run a Crowdfunding campaign.
Where traditional investment avenues might be closed to some fresh – but risky – AI possibilities, Crowdfunding platforms, that offer investors the option of risking only a small amount of equity, are a natural fit.
To prove the point, here are just a few successful AI Crowdfunding campaigns:
- Mycroft Open Source Artificial Intelligence
where some big corporations have created digital assistants capable of interpreting human speech, few others have. Mycroft Open Source AI, successfully raised 129% of its target and is now letting users download its own voice recognition tech for free. It also invites those users, coders and tech experts, to add to and improve the basic program.
- AI personal trainer VI
Another AI success, this time in the world of fitness. Vi lives in specially designed earphones and doesn’t just measure your achievements, she helps you hit harder goals in a way that works for you.
- AI art app Joto
a ‘robotic whiteboard’ that brings tweets, lists and images to life. The device can draw or write your images and tweets onto a whiteboard, regardless of where in the world you are. Lots of potential and plenty of backers.
Considering the Economic Impact of AI
As you can see, the possibilities of AI and Crowdfunding together – in a variety of ways – is rather exciting. But, is it all good? Not necessarily.
Here are just some of the ways AI could potentially impact economies:
- Job Losses Due to Automation
AI industry developments mean some jobs will be done mainly by robots or machines. This will impact the jobs market around the world. A study by PwC suggests 30% of the UK’s jobs in the transport, manufacturing, and wholesale and retail industries will be automated by 2030.
- Increased Productivity
Where jobs are lost to AI-based automation, its likely productivity will increase, which is beneficial to the economy as firms will -theoretically – be able to fulfil orders more quickly.
- New, More Involved and Rewarding Job Roles Created
Where job losses occur in industries that automation works well, this could lead to job creation in other areas that are very important and less viable options for the AI and automation market. “Automating more manual and repetitive tasks will eliminate some existing jobs, but could also enable some workers to focus on higher value, more rewarding and creative work, removing the monotony from our day jobs,” said PwC’s chief economist, John Hawksworth. “By boosting productivity – a key UK weakness over the past decade – and so generating wealth, advances in robotics and AI should also create additional jobs in less automatable parts of the economy as this extra wealth is spent or invested.”
- Benefit the Healthcare Industry
At CES, a recent Las Vegas tech trade show, attendees anticipated AI would have the biggest impact on the healthcare industry, followed by retail, by 2020. They suggested existing heart rate monitoring smart watches and sensors could be used by doctors to pick up any underlying heart problems, before they do too much damage. Running the right algorithm on already available data has resulted in positive results and a bigger study is soon to be underway. If doctors were able to diagnose heart trouble earlier on it should cost less in treatment and drugs. It would also keep people fitter and in work with less disruption due to a more sever version of the illness later on. In this scenario, the healthcare economy and jobs market both benefit – not to mention the AI and heart monitoring industries!
- AI Technology Could Double Economic Growth
As a whole, AI technology applied across multiple industries, including the IoT, could almost double Gross Domestic Product (GDP) growth in the world’s 12 most developed countries by 2035, research from global professional and financial services firm, Accenture shows. In detail, Accenture estimate AI tech could add $8.3 trillion to the US economy and $814 billion to the UK economy over the next 15-20 years.“This ‘doubling time’ is an indicator of economic development and the results are primarily driven by a country’s ability to diffuse technological innovations into its wider economic infrastructure,” the Accenture report read.
Embrace AI – And Crowdfunding!
It’s clear there are plenty of positive ways that AI can impact economies and a variety of industries – including Crowdfunding. But, as with anything, there are potential pitfalls. In this case, they could be related to both overestimating and underestimating exactly what AI can help us achieve.
But, aside from that, we say ignore AI and the potential it has to support Crowdfunding, at your peril. We see them as natural partners, something we’re sure will become a more widely shared view, as more successes are achieved in both industries.
- Significant disruptors
- AI personal trainer VI
- Study by PwC
- Accenture research