Marks Paneth examines valuation of AI

BVWireIssue #179-5
August 30, 2017

Voice-powered personal assistants, self-driving cars, phone apps with behavioral algorithms—will the machines totally take over? Will Siri turn into Talky Tina? Who knows, but, in the meantime, artificial intelligence (AI) needs to be valued. AI is “one of the fastest growing, yet arguably least understood, areas of the tech sector today,” says an article from Marks Paneth that examines the AI valuation challenge. One piece of research the article mentions reveals that the median price paid to AI startups per employee is $2.4 million. Buyers use this metric as a cross-check to avoid overpaying—they don’t use it to value AI startups.

Please let us know if you have any comments about this article or enhancements you would like to see.