Who are entrepreneurs in the artificial intelligence industry?
Submitted by Dr. Bongsug Chae, Professor
Digital technologies are the driving force behind the creation of new ventures in the twenty-first century. Particularly, there is a growing interest in artificial intelligence (AI) and related technologies. AI is a general term referring to the use and application of data, algorithms, and computing power aimed to provide intelligent services such as automation, diagnosis, and prediction. Many believe that AI likely leads to disruptive innovation in business and society, which can create significant opportunities and threats for businesses. According to several industry reports, venture funding to AI and relevant areas (e.g., data analytics) is rising. There are a growing number of startups focusing on AI in the US. CB Insights reported that there have been four straight years of growth of venture investments in AI startups, and in 2018 the venture funding reached a record $9.3 billion. This is eight times more than five years ago.
Professor Bongsug Chae, in the Department of Management, is conducting a series of research projects exploring the interface between data analytics, artificial intelligence, and entrepreneurship. One of his research projects is attempting to develop some initial evidence about those entrepreneurs in the AI and data analytics industry. Who are entrepreneurs in these emerging fields? What are their personality and demographic traits? What is their social media presence?
His ongoing project studies over 1,000 entrepreneurs in the AI and data analytics industry using their personality, demographics, and Twitter activity information. The research employs a variety of exploratory data analysis and machine-learning techniques. Some initial findings show that entrepreneurs in AI and data analytics are highly open-minded, organized, outgoing, competitive, and emotionally stable, and they are less diverse in terms of gender and ethnicity than the general public. The findings also indicate that AI entrepreneurs are different from non-AI entrepreneurs: they are likely to be male, more active in social media, and tend to be more extroverted and emotionally stable, but less agreeable, conscientious, and open to new experiences. There is also evidence that AI entrepreneurs have more followers and fewer friends on Twitter, indicating they are popular and influential in online networks.
What should entrepreneurs and investors know?
Extroverted and open-minded personalities appear to be advantageous in AI entrepreneurship. Entrepreneurs in the AI field should consider education and training, as well as new experiences to further develop behaviors that can influence these personality traits.
AI entrepreneurs tend to be highly competitive in personality, so emotional stability and being conscientious are important personality traits to be successful in AI entrepreneurship. There may be more competition and stress in this evolving field.
There is less diversity in entrepreneurship in terms of gender and ethnicity than the general public. There appears to be a stronger gender disparity in AI entrepreneurship. In regard to ethnicity, there seems to be a slightly higher representation of Asian entrepreneurs in the AI industry.
Successful AI entrepreneurs are active and influential online. Future entrepreneurs should focus on developing skills, not only in integrating algorithms and digital infrastructure for new service development but also in using social media for marketing and networking. This can be an important area for investors to pay attention to in their decision-making.
Recent publication:
Digital Entrepreneurs in Artificial Intelligence and Data Analytics: Who Are They?
Journal of Open Innovation: Technology, Market, and Complexity 6(3). In 2020.