Episode Transcript
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Speaker 1 (00:03):
Broadcasting live
from somewhere inside the
algorithm, this is AI on air,the official podcast from
whatisthat.ai, we're your AIgenerated hosts, let's get into
it. Okay. Let's unpack this abit. So there's this statistic
floating around. Over 11,000 AItools built, launched,
(00:26):
supposedly out there changingthe world.
Speaker 2 (00:27):
Sounds like a real
gold rush, doesn't it?
Speaker 1 (00:29):
It really does. But
here's the kicker, the sort of
jolt. Mhmm. About a third ofthem already gone. Just offline
poof.
Speaker 2 (00:36):
Vanished. Yeah.
Speaker 1 (00:38):
To me, that just
screams, you know, intense
experimentation and maybe,frankly, a bit of a shakeout
happening right now.
Speaker 2 (00:44):
Oh, absolutely.
What's really striking is just
the sheer volume of attempts andhow how quickly the whole
landscape is shifting. It reallyshows how fast this field is
moving. Right?
Speaker 1 (00:55):
Lots of ideas getting
tested, like, in real time.
Speaker 2 (00:58):
Exactly. And that's
that's precisely why we're doing
this deep dive today. We'relooking at a really fascinating
report from what That dot AI,their AI tool report. And
they're not just, you know,tracking mentions or hype.
They're actually monitoring liveAI tools and verifying the data,
especially where these tools arecoming from.
Speaker 1 (01:16):
Which is harder than
it sounds, I bet. Definitely.
They even mentioned they'reworking on a sort of future
method using AI to analyze thoseterms of service agreements for
location data.
Speaker 2 (01:26):
Oh, interesting.
Because those dense legal
documents, you know, they cansometimes tell you a surprising
amount about a company's realpriorities.
Speaker 1 (01:34):
Right. Like data
handling or how they view
different regulations.
Speaker 2 (01:36):
Exactly. Their
comfort level maybe.
Speaker 1 (01:38):
So our mission here
for this deep dive is pretty
clear. We want to pull out thekey insights. Where is AI
development actually happeningglobally? And what is this like
huge disappearance rate, thischurn? What does it actually
mean?
Speaker 2 (01:52):
Right.
Speaker 1 (01:52):
Whether you're
building in this space or
investing or maybe you're just,you know, fascinated by all this
tech, this is really for you.
Speaker 2 (01:59):
Yeah. Because
understanding these basic
patterns, the geography ofinnovation, the, the mortality
rate of these tools, it givesyou a real edge, a way to make
sense of a really complex, fastmoving area.
Speaker 1 (02:10):
Okay. So let's jump
in. First, big question. Yeah.
Where are these tools actuallybeing built?
According to the report'sverified data, The US, it's way
out front, 1,182 tools, which Iguess isn't totally unexpected.
Speaker 2 (02:25):
No. Not really
surprising given the, you know,
the established tech scene, theaccess to capital here. But but
Yeah. It's really important tolook beyond just that top
number. The fact that othercountries are showing
significant activity too.
That tells you it's a muchbroader global thing.
Speaker 1 (02:40):
Absolutely. Because
right behind The US, you've got
some serious players. The UK,for instance, they're next with
a 25 tools. Then India, EightyThree. Canada, Seventy Four.
Germany's got 68. France, 40three. Netherlands, 30 four. I
mean, it's a pretty strongdiverse group.
Speaker 2 (02:56):
It really is. And
that international spread, it
kind of suggests AI innovationisn't just stuck in one place.
Different countries probablybring different strengths,
different focuses, maybedifferent research priorities,
you know.
Speaker 1 (03:05):
Okay. So let's zoom
in a bit. From countries to
cities. The report alsopinpoints the top urban hotspots
for AI development.
Speaker 2 (03:13):
In San Francisco.
Speaker 1 (03:14):
Still number one.
Yeah.
Speaker 2 (03:15):
Awesome.
Speaker 1 (03:15):
370 tools, which, you
know, fits the narrative. Major
tech hub.
Speaker 2 (03:19):
It does fit the
narrative. But here's what's
really revealing, I think. Those370 tools, that's only about
what? 18% of the total verifiedtool?
Speaker 1 (03:28):
Exactly. Which means,
doing the math, over 80% of
these AI tools are starting upsomewhere else. Right. That
really challenges that wholeidea that AI innovation is only
a Silicon Valley story.
Speaker 2 (03:40):
It really does. And
that distribution, that's a key
takeaway here. SF isinfluential, sure, but the data
clearly shows a much moredispersed landscape.
Speaker 1 (03:50):
Yeah.
Speaker 2 (03:51):
You've got cities
like New York, Hundred And
Twenty Nine tools. London, ahundred and three. Those are
major centers in their ownright.
Speaker 1 (03:57):
And it doesn't stop
there. You see Mountain View,
Paris, Singapore, Berlin, PaloAlto, LA, San Jose, all in the
top 10. Plus, the reportspecifically flags London,
Toronto, Bangalore, Berlin, andTel Aviv as serious emerging
hubs.
Speaker 2 (04:11):
And they mentioned
reasons, right, like access to
engineer?
Speaker 1 (04:14):
Yeah, speed, cost
maybe.
Speaker 2 (04:15):
Right. Those
concentrations in specific
cities, probably reflectsexisting tech infrastructure,
strong universities, pumping outtalent, good investor networks,
mentors.
Speaker 1 (04:25):
And
Speaker 2 (04:26):
the growth in these
other hubs suggests those
enabling factors are spreadingout globally.
Speaker 1 (04:31):
But it's not just the
big guys, is it? The report also
highlights some, small playerson the rise, which I thought was
really interesting. Estonia,Switzerland, and Israel.
Speaker 2 (04:42):
Yeah. What's kind of
remarkable there is that their
output, the number of AI tools,seems pretty high compared to
their population size or eventheir overall tech sector size.
Speaker 1 (04:51):
Right.
Disproportionately high. They
called Estonia the Davos ofdigital. Yeah. Suggests a very,
like, forward thinking digitalenvironment.
Speaker 2 (04:59):
Mhmm. And
Switzerland, described as neat,
clean, quietly AI forward.
Speaker 1 (05:05):
Which paints a
picture, doesn't it? Yeah. Maybe
a more measured approach, butstill really effective.
Speaker 2 (05:11):
Quietly effective.
Yeah. And Israel well, Israel's
always been strong in techinnovation. The report notes
their strength in areas reallycrucial for AI, like
cybersecurity, coreinfrastructure.
Speaker 1 (05:20):
That foundational
stuff.
Speaker 2 (05:21):
Exactly. That
expertise probably helps support
building all sorts of AIapplications on top.
Speaker 1 (05:26):
Okay. So this all
leads to a really basic
question. Why should we evencare where these tools are being
built? It's more than just dotson a map.
Speaker 2 (05:34):
Precisely. Location
gives you critical context. It
hints at the regulatory world atool lives in.
Speaker 1 (05:41):
Right.
Speaker 2 (05:41):
The availability of
certain skills, investment
climate, maybe even like thebasic assumptions baked into the
tool about data privacy.
Speaker 1 (05:50):
Right.
Speaker 2 (05:51):
Essentially, it gives
you a deeper read on the
environment that's shaping thatAI.
Speaker 1 (05:55):
It's all part of what
they call AI market
intelligence.
Speaker 2 (05:57):
Exactly that.
Understanding these geographic
clusters, it gives you a realstrategic advantage potentially.
Yeah. It just allows for moreinformed decisions whether
you're thinking about investingsome more specific or just
trying to figure out thecompetition in a market.
Speaker 1 (06:11):
Okay. Let's shift
gears then to the other really
big finding in this report. Thechurn rate.
Speaker 2 (06:17):
Yes. The churn.
Speaker 1 (06:18):
Out of those, was it
11,266 tools they tracked,
nearly 4,000 are already gone,ceased to exist.
Speaker 2 (06:26):
That is a lot of
attrition.
Speaker 1 (06:27):
It really is.
Speaker 2 (06:28):
And it just
underscores how incredibly
dynamic this AI space is rightnow. And, pretty competitive
too. Yeah. We're seeing justrapid fire experimentation. And,
you know, naturally, not everysingle attempt is gonna stick.
Not every idea is viable longterm.
Speaker 1 (06:46):
The report paints a
pretty vivid picture.
Disappearing founders, websitesthat just die, entire categories
that seem to pop up and thenjust collapse.
Speaker 2 (06:55):
It sounds very,
Darwinian, doesn't it?
Speaker 1 (06:58):
It really does. A
Darwinian environment for AI
tools.
Speaker 2 (07:01):
Well, that kind of
high volatility, it's pretty
typical for a rapidly emergingmarket. There's tons of
exploration, testing differentangles
Speaker 1 (07:08):
Right.
Speaker 2 (07:09):
And a big chunk just
won't find a sustainable path.
It'll be really interesting whenthey dig into why these tools
failed. That analysis could besuper valuable.
Speaker 1 (07:17):
Definitely something
to watch for. But okay, for you
listening right now, why doesall this matter? The location
stuff, the high failure rate.What's a practical takeaway?
Speaker 2 (07:25):
Well, about it. If
you're trying to hire AI talent,
knowing where the bigdevelopment hubs are gives you a
huge leg up in your search.
Speaker 1 (07:32):
Good point.
Speaker 2 (07:32):
Similarly, if you're
scouting for promising startups,
or maybe potential acquisitions,understanding these clusters
helps you focus where innovationis most likely bubbling up.
Speaker 1 (07:41):
And if you're
thinking about expanding your
own AI work, knowing where thenext wave might be coming from,
that informs your strategy,right? Yeah. Market entry,
potential partners.
Speaker 2 (07:50):
It's really more than
just geography. It's about
getting a grip on the underlyingmarket dynamics. The flow of
talent, where the money'sconcentrating, the regional
strengths that help create thesetools in the first place.
Speaker 1 (08:03):
The report also
mentioned briefly some other
interesting data points they'retracking, not just location.
Speaker 2 (08:09):
Right. Like churn
rates within specific AI
categories.
Speaker 1 (08:12):
Yeah. And the link
between, like, search demand,
what people are looking for, andthe actual number of tools
available.
Speaker 2 (08:17):
Mhmm. And identifying
categories that are shrinking
versus ones that still seem wideopen.
Speaker 1 (08:22):
That seems useful.
Speaker 2 (08:23):
Yeah. Looking at
trends, like how often people
search for AI video generatorversus how many actual tools
exist. That can tell you a lotabout whether a niche is getting
saturated or if there are stillgaps, unmet needs.
Speaker 1 (08:36):
And they made a
really smart point. High churn
isn't always bad news for you.
Speaker 2 (08:40):
How so?
Speaker 1 (08:41):
Well, seeing a lot of
tools fail in one specific
category, that could be a prettystrong signal that maybe that's
not the area to pour your owntime and money into.
Speaker 2 (08:50):
Right. A signal of
what not to do, learning from
others' failures.
Speaker 1 (08:54):
Exactly.
Speaker 2 (08:54):
That can be just as
valuable as spotting the
successes. Helps you avoidcrowded or maybe just
unsustainable market segments.
Speaker 1 (09:02):
So, okay, boiling it
all down, what's the key
takeaway here? The core messagefrom this deep dive into the AI
tool report that you shouldreally hang on to?
Speaker 2 (09:11):
I think the
fundamental message is
understanding both where AI isbeing built and the, the
significant rate tools are dyingoff, that gives you a crucial
strategic advantage.
Speaker 1 (09:22):
Mhmm.
Speaker 2 (09:22):
It's about looking
past the surface hype, know.
Really getting the lay of theland in this super fast changing
field. It helps you spot theopportunities and maybe navigate
the pitfalls.
Speaker 1 (09:31):
So quick recap then.
US leads in sheer numbers, but
definitely not alone. Yeah. UK,India, Canada, others are major
players too.
Speaker 2 (09:39):
Right. It's
diversifying.
Speaker 1 (09:40):
We're seeing key city
hubs pop up globally. Yeah. Way
beyond Silicon Valley. ThinkLondon, Toronto, Bangalore.
Bangalore.
Speaker 2 (09:47):
And smaller nations
like Estonia, Switzerland,
Israel are really punching abovetheir weight.
Speaker 1 (09:53):
And maybe the biggest
point, that super high churn
rate, it just highlights howdynamic and yeah, how
competitive this AI space isright now.
Speaker 2 (10:03):
Which kind of leads
us to a final thought for you to
mull over.
Speaker 1 (10:05):
Okay.
Speaker 2 (10:06):
Given this huge
failure rate, what fundamental
shifts do you think thesurviving tools will actually
represent? What core value, whattech edge will define the ones
that actually make it andthrive?
Speaker 1 (10:17):
That's a good one. Or
maybe thinking about those
geographic clusters we talkedabout. Knowing where innovation
is bunching up now, what newkinds of collaboration or maybe
even new competitive rivalriesmight we see emerge as these
hubs grow and maybe startconnecting more in the few
years.
Speaker 2 (10:32):
Definitely some
interesting things to chew on
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