99 Startups Monthly Newsletter - August 2024
As we have seen in the past few years, AI startups and investments in AI have been growing exponentially, including LATAM. Right now, it is hard to find a company that has not incorporated any AI features into its products. There are good AI companies with solid technology and bad AI companies with weak and outsourced technology, but everyone is trying to enter the competition and win the race.
According to Lenovo, Mexico is positioning itself as one of the leading countries in the region investing in AI infrastructure. Mexico is expected to contribute a total investment of $98M USD, and the rest of LATAM countries a total of $240M USD in 2024. This study shows that 62% of organizations in LATAM consider AI integration a crucial point for their evolution. Additionally, 35% indicated that adopting AI is one of their top priorities for 2024.
This leads me to think that in a few years, every company will be an AI company. Alongside this, there’s been an ethical discussion on whether humans should establish a limit on AI technologies.
These ethical issues can be translated into risks for investors, consumers, and companies. AI performs many human-like activities and is expected to replace many jobs in the following years, but we must always consider ethical considerations and ask questions before engaging in any project. For example, how should a self-driving car react to a life-or-death decision? and whose fault will be if it results in a fatality? These are some of the many questions that have been asked in the last years regarding ethical and regulatory considerations, that no one has been able to answer.
We don’t know the limits of AI and how far it can go. But we should always take care of the products we are consuming and the companies we are creating. Companies face a weak regulation that is evolving at different speeds within countries, creating a high level of uncertainty.
On our side, the investors should try to assess AI risks comprehensively and look to support the companies that make full disclosures about their products and strategies, because these companies will be best prepared for the new regulations coming next. We should analyze these risks not only at the company level but also along the business chain and across the regulatory environment.
News about our portfolio companies:
Stables Takes On Latin America with Koywe Partnership
Plenna showcased in the latest episode of SharkTank Mexico.
Great companies we have recently reviewed:
Frontline: Their AI-native frontline assistants help businesses respond to every customer inquiry in seconds, not hours or days, 24/7/365, in 80+ languages.
Hashi: Help fintechs acquire users at a lower cost, through a content-driven platform tailored for each.
Recommendations of the month:
Secrets of Sand Hill Road: Venture Capital and How to Get It - Scott Kupor: Scott will help you understand why VCs do what they do and their processes. He also introduces some legal terms that many entrepreneurs don’t understand but are fundamental.
Berkshire Hathaway Part I - Acquired: In this episode, you will get to know more about the most prestigious investor in the world: Warren Buffet. They talk about how he became who he is and about some key aspects of his life.
How to price your AI product: Insights from a pricing expert - Nika Witczak.