Good day. The hype around artificial intelligence is creating challenges for businesses selling AI products, says Jack Altman, managing partner of Alt Capital, which just launched an accelerator for business software startups.
On the one hand, demand is strong. “You are seeing companies ramp revenue very quickly,” he said.
Budgets are opening up for AI from even more conservative industries, such as education, government and healthcare. “They are really ready to buy this stuff,” Altman said.
However, customer commitment may be weak and it is an open question whether initial contracts will be renewed. “You are dealing with a very strong uptake in experimental budgets and you have to be careful on the other side,” Altman said.