There’s something going badly wrong with the investment community.

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There’s something going badly wrong with the investment community. How many AI investment will deliver the shareholder value they claim. How many AI companies deliver AI solutions that address real world issues. How many investors invest in companies that claim to deliver AI solutions, as seems to be the case of Builder.ai.

Some $billion valuations are no more than a paper tigers.

In a story that sounds like it’s out of a sitcom, AI start-up Builder.ai, once valued at $1.5 billion and publicly backed by Microsoft, has just collapsed after it was discovered its AI was actually just 700 Indian engineers manually working on tickets.

We hear so many times about mega valuations for AI tech companies. In some cases companies that appear to have no more than ‘vapor ware’, or as this article points out with Builder.ai, 700 engineers working on tickets to resolve ‘AI Queries’.

Dan Miles, we developed an AI audit solution that assures cyber control effectiveness. We did this working with a cyber audit firm and pulled in a group of industry experts to validate our work. We can demonstrate through a technical architecture and process, a product that works. Seems like investors, even those as mature as Microsoft, and those that backed Builder.ai should have followed a similar process.

Prosecutors are now looking at how and why Builder.ai ended up in bankruptcy and how investors missed red flags and how management of Builder.ai ran the company, that has resulted in the loss of jobs.

@Thaddeus Dziekanowski Brian D. McCarthy Faisal Khan

Veritas GRC

#cybersecurity #cyberriskmanagement #artificalintelligence

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