Recently, the U.S. state of Utah took a closer look at the AI software of the start-up Banjo, which was purchased for predictive policing, and was met with a rude surprise: the startup hadn't used any techniques that fit the industry's definition of artificial intelligence. Instead of intelligent algorithms, some of the information was analyzed by human data analysts.
These examples not only cost authorities and companies time and money, but also cast a technology on which many have placed their hopes in a bad light. A study by the German Federal Ministry for Economic Affairs and Energy indicates that AI makes an enormous contribution to innovative strength. Companies that employ AI are more likely to produce sophisticated innovations of a high degree of novelty than companies that do not use this technology. The use of AI thus pays off directly in terms of growth: AI solutions help businesses become more productive, more competitive, and generate more revenue.
The revenues generated by AI-based applications are expected to rise from the current 26 billion US dollars to almost 100 billion US dollars in 2025, according to a forecast by the analysts at Tractica. It's no wonder that many software firms and start-ups are jumping on the AI bandwagon. But not all providers have actually mastered the technology and instead are merely luring people in with marketing promises. According to research by London-based investment firm MMC Ventures in 2019, around 40 percent of all "AI start-ups" in Europe did not include artificial intelligence as part of their business or offering.
Deepfakes are currently much better known than fake AI. The term is a combination of “deep learning” and “fake”, i.e., a method of machine learning and faking. This usually involves an image or video of a person created and falsified by AI. Deepfakes can have deceptively real appearances and are becoming increasingly widespread on the internet, as there are now numerous free "fake apps" that can be used to swap faces, alter sound recordings, and manipulate other content.