Mon, 10 April 2023
The Use of Data and Algorithms in AI
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Artificial intelligence utilizes data and algorithms to create technical solutions.
Data and algorithms could be open or closed giving the business a competitive advantage.
Here’s a list of the business models and how open and closed data and algorithms impact the business.
The Black Box -- both data and algorithms are closed.
This gives the business complete protection against competitors reviewing the data and algorithms.
The drawback is a lack of trust and transparency by the users of the system as they don’t fully understand how it works.
Open-source model -- both data and algorithms are open.
This gives competitors access to the methodology and the data leaving nothing proprietary to the company.
The advantage here is users can see how the system is working and adapt to it.
Open data model -- the data is open but the algorithm is not.
This makes the algorithm proprietary.
This model works well for customers with their own data so the company monetizes the output.
Open algorithm model - the algorithm is open but the data is not.
This makes the data proprietary.
This model works well for customers who understand the processing aspect but have access to little data so the company monetizes the data.
In building your business model in AI consider what the customer has and does not have relative to the algorithm and the data.
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