The Role of Data for AI Startup Growth
Bessen, J., Impink, S. M., Reichensperger, L., & Seamans, R. (2022). The role of data for AI startup growth. Research Policy, 51(5).
15 Pages Posted: 2 Aug 2021 Last revised: 26 Aug 2022
Date Written: June 1, 2022
Artificial intelligence (“AI”)-enabled products are expected to drive economic growth. Training data are important for firms developing AI-enabled products; without training data, firms cannot develop or refine their algorithms. This is particularly the case for AI startups developing new algorithms and products. However, there is no consensus in the literature on which aspects of training data are most important. Using unique survey data of AI startups, we find that startups with access to proprietary training data are more likely to acquire venture capital funding.
Keywords: artificial intelligence, competition, data, algorithms, venture capital
JEL Classification: O33, J21, L10, L26
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