FUTURE OF
ARTIFICIAL INTELLIGENCE
Andrew Trabulsi
June 2015
1
What are the major investment trends?
What’s the IP landscape look like?
What’s coming next?
2
Where’s the
money going?
3
Funding—where are we?
Private investment growing rapidly, M&A peaked in 2012
Past five years of funding into artificial intelligence ($mn)
20,000
M&A
18,000
Private Investment
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2010
2011
2012
2013
2014
2015*
Source: Capital IQ, Quid, iftf
4
How’s the market shaping up?
Key investment areas since 2010
Cybersecurity!
Financial services!
Market Composition
Shopping!
Enterprise Resource!
Planning!
Robotics!
Ads!
MapReduce!
Natural Language!
Processing!
News Analysis!
Personal Assistant!
Medical!
Music!
Computer Vision!
Cancer diagnostics!
Medical
10%
MapReduce
9%
NLP
9%
Ads
8%
ERP
8%
Robotics
7%
Shopping
7%
Computer Vision
6%
Recruiting!
Source: Capital IQ, Quid, iftf
5
Where’s it going?
Notable private investments and M&A deals since 2010
Quid, Inc.
ColdLight Solutions, LLC
Databricks, Inc.
Bright Media Corp.
Antuit Pte. Ltd.
Equivio, Ltd.
Sentient Technologies, LLC
Deep Mind Technologies, Ltd.
Private
M&A
$49mn
—
—
$105mn
$54mn
—
—
$120mn
$59mn
—
—
$200mn
$104mn
—
$400mn
Source: Capital IQ, Quid, iftf
6
But what are they doing with all this money?
7
Patent development is taking off
Over 7x growth in IP development from 2004 - 2013
Previous ten years of patent filings
400
Machine Learning Patents
350
300
250
200
150
100
50
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Thomson Reuters, Quid, iftf
8
The IP ecosystem is diverse
Machine Learning patents across use cases
Text Classification!
Querying Method!
Semiconductors!
Data Mining!
Social Network !
Analysis!
Data Protection!
Natural Language!
Processing!
Cybersecurity!
Neural Network!
Video Analysis!
Customer Analytics!
Molecular Analysis!
Querying Method!
Personal Assistant!
IP Deconstruction
Text Classification
11%
Customer Analytics
11%
Querying Methods
8%
Medical Diagnostics
7%
Data Mining
7%
Cybersecurity
6%
MRI Analysis
6%
Facial Recognition
4%
Source: Thomson Reuters, Quid, iftf
9
…But held by only a few players
Intellectual property not predominantly held by start-ups
Microsoft
IBM
Patents held
140
%
9%
90
6%
Yahoo
59
4%
Google
49
3%
Nippon Telegraph & Telephone Corp
34
2%
Hewlett-Packard
28
2%
Behavioral Recognition Systems, Inc.
24
1.5%
Qualcomm
20
1%
Source: Thomson Reuters, Quid, iftf
10
What’s next?
11
Combinatorial Innovation
Won’t be just single technology or use case that changes game
12
Combinatorial Innovation
Won’t be just single technology or use case that changes game
13
Revisiting our patent analysis
Over 7x growth in IP development from 2004 - 2013
Previous ten years of patent filings
400
Machine Learning Patents
350
300
250
200
150
100
50
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Thomson Reuters, Quid, iftf
14
It’s really a much bigger story…
IP development across use cases 2004 - 2013
Previous ten years of patent filings
600
Automated Judgement Patents
Machine Learning Patents
500
400
300
200
100
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Thomson Reuters, Quid, iftf
15
Innovations build on top of each other
IP development across use cases 2004 - 2013
Previous ten years of patent filings
1400
Computer Vision Patents
1200
Automated Judgement Patents
1000
Machine Learning Patents
800
600
400
200
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Thomson Reuters, Quid, iftf
16
To create a wide range of opportunities
IP development across use cases 2004 - 2013
Previous ten years of patent filings
2000
Neural Network Patents
1800
Computer Vision Patents
1600
1400
Automated Judgement Patents
1200
Machine Learning Patents
1000
800
600
400
200
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Thomson Reuters, Quid, iftf
17
Innovations overlap with one another. It won’t just be
advances in a single field that change the world or impact our daily lives. It will be combinations of advances,
across fields, that do. Understanding this, helps put today’s innovations into perspective for tomorrow.
18
Thank you!
19