Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Path: utzoo!mnetor!uunet!iscuva!randyg
From: randyg@iscuva.ISCS.COM (Randy Gordon)
Newsgroups: comp.sys.mac,misc.invest,comp.ai
Subject: Re: Expert Systems Company Financing...
Message-ID: <810@iscuva.ISCS.COM>
Date: Wed, 14-Oct-87 12:11:57 EDT
Article-I.D.: iscuva.810
Posted: Wed Oct 14 12:11:57 1987
Date-Received: Thu, 15-Oct-87 21:48:32 EDT
References: <7260@dartvax.UUCP> <1111@omepd> <17194@glacier.STANFORD.EDU>
Reply-To: randyg@iscuva.UUCP (Randy Gordon)
Distribution: na
Organization: ISC Systems Corporation, Spokane, WA
Lines: 35
Keywords: Venture Capital, Govrt loans,...
Summary: But...
Xref: mnetor comp.sys.mac:8157 misc.invest:1036 comp.ai:893


But...

That really doesn't reflect on AI's success. There have been quite a number
of wildly sucessful AI projects that I know of, but they are usually buried
deep in companies that do other things, and noone talks about them, so
they won't lose competitive advantage.

None of the pure AI companies really had a chance. All they sold were tools
to solve problems, and consulting services. But one tool generates many
end products, and theres only so much training you can do before your customer
knows as much as you do.

Companies that sell end products that use AI techniques(such as Syntelligence,
or the thousand and one genetic engineering companies) are doing quite well.
So are the ones that use AI as part of a tool to increase productivity or
spread expertise, like Dec.

If any of those pure AI companies had ANYONE with decent marketing(not sales!)
experience, they would have started generating applications, (with tools as a
sideline). Theres a HUGE vein of expertise out there to be mined. Many
industries lack the will, expertise, or political situation to make use of the
knowledge that exists and the AI techniques necessary to utilize it. 

AI techniques can fulfill needs that are difficult to answer with other 
technologies. In combination with more ordinary programming techniques, you
can provide a demonstratably superior product in many areas. But you have
to be answering needs! 

AI companies don't have problems because they are AI, they have problems
because noone in them really understands how to succeed as a business, 
rather than as a glorified consulting firm.


Randy Gordon