Artificial Intelligence (AI) is the tech buzzword of 2023 - every new startup is in AI and every old one wants to include it in their offering somehow. The actual number of AI startups is constantly changing, but it is estimated that there are currently over 57,000 AI companies worldwide. In this post, the goal is to answer 3 questions - 1st, why is this trend happening? 2nd, does it matter? 3rd, how can an AI startup stand out? 

Starting with the obvious - AI startups number has been growing rapidly in recent years, as AI technology has become more powerful and accessible. The United States is home to the largest number of AI startups, with over 14,700 companies. China is the second-largest market for AI startups, with over 7,000 companies. The growth of the AI startup industry is being driven by a number of factors, including:

• Increased investment: Venture capitalists have been investing heavily in AI startups in recent years. In 2022 alone, AI startups raised over $47 billion in funding.

• Growing demand for AI: Businesses are increasingly adopting AI technologies to improve their operations and products. This is creating a strong demand for AI startups that can provide these solutions.

• Advances in AI technology: AI technology is becoming more powerful and accessible, which is making it easier for startups to develop new and innovative AI products.

As AI technology continues to develop, we can expect to see even more innovative AI startups emerging. These startups will have a major impact on the way we live and work, and they will create new opportunities for businesses and individuals alike. Just in case you've yet to notice, AI has already been increasingly integrated into our daily lives, often in ways that we may not even realise. 

1. Virtual assistants

2. Facial recognition

3. Spam filtering

4. Product recommendations 

5. Fraud detection

6. Machine translation

7. Personalised news feeds

8. Social media filters

So, if you are in an AI startup of a business rolling out AI features, what can you do? With the ever-growing number of AI startups, standing out in the market requires a strategic and innovative marketing approach. Here are some ways for AI startups to differentiate themselves and capture the attention of users, partners, and investors:

1. Focus on a specific niche or problem and clearly communicate the value proposition: The startup should focus on a specific niche or problem - that enough people have. In addition, there is a need to explain how their solution can solve the customer's problem better someone else. 

2. Demonstrate expertise and thought leadership: Establish oneself as an expert in their field by publishing thought leadership content, such as blog posts, white papers, and articles. Definitely participate in industry events and conferences to network.

3. Build strong relationships with influencers and journalists: Build relationships with influencers and journalists that cover AI. Its a good way get your product or service in front of a wider audience.

4. Create a strong brand identity: Invest in a strong brand identity and use it consistently across all marketing materials. This will help establish a recognisable and trustworthy brand. 

For example: One of the most well know AI startups is the maker of ChatGPT - OpenAI, a non-profit research company that is developing safe and beneficial artificial general intelligence. The company has used a variety of marketing strategies 1/2/3/4 above to raise awareness of its work, including:

• Creating a blog and social media accounts to share its research findings with the world.

• Giving talks and presentations at conferences and events.

• Working with media outlets to get its work covered in the news.

• Hosting contests and challenges to encourage people to participate in its research.

5. Drink your own champagne: Don't tell me, show me - use real-life scenarios of the founders and/or case studies of customers to prove to your audience they should adopt your product / service. Typical channels will be using social media, video marketing, and influencer marketing.

6. Make it easy for customers to try your product and make it sticky: This could be offering a free trial or demo - to ensure that they return, find ways to frequently remind them how much easier life can be. That said, there is a fine line between being annoying and persistent in your messaging - thread carefully. 

For example: Clarifai, an AI platform that helps businesses understand and use visual data. They used strategies 5/6 to create a free API that allows developers to integrate its technology into their own applications.

While no one can predict whether AI will still be the buzzword next year, AI is already in many parts of our lives and it will only be increasingly more so in the future. For consumers, the onus is on them to learn and adapt to it - like how AI was used to enhance this post. For AI startups, the hard work beyond building it, is to market it well enough to be noticed.