The Role of Data for AI Startup Growth

34 Pages Posted: 2 Aug 2021

See all articles by James E. Bessen

James E. Bessen

Technology & Policy Research Initiative, BU School of Law

Stephen Michael Impink

New York University (NYU) - Leonard N. Stern School of Business

Lydia Reichensperger

Technology & Policy Research Initiative, BU School of Law

Robert Seamans

New York University (NYU) - Leonard N. Stern School of Business

Date Written: June 1, 2021

Abstract

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

Suggested Citation

Bessen, James E. and Impink, Stephen Michael and Reichensperger, Lydia and Seamans, Robert, The Role of Data for AI Startup Growth (June 1, 2021). Available at SSRN: https://ssrn.com/abstract=3896463 or http://dx.doi.org/10.2139/ssrn.3896463

James E. Bessen (Contact Author)

Technology & Policy Research Initiative, BU School of Law ( email )

765 Commonwealth Avenue
Boston, MA 02215
United States

Stephen Michael Impink

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

Lydia Reichensperger

Technology & Policy Research Initiative, BU School of Law ( email )

765 Commonwealth Avenue
Boston, MA 02215
United States

Robert Seamans

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

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