Hold the Flying Cars, Is AI Our New Overlord?

Sure here is a well-crafted newsletter for the second edition of Deja Brew…. We are joking we don’t use AI to write our newsletters (not yet atleast) , but should you (and us as writers of the newsletter) be worried about AI? Will AI ever be anything more than a dumb chatbot, will it be your (or my) girlfriend? We take a look at all of this, the AI startup landscape in India and a little bit more in today’s edition of Deja Brew.

Remember when we thought flying cars would be the coolest thing in the future? Well, hold onto your handy scrollpads (thoda zyada ho gaya?), because AI is here, and it's turning our world upside down faster than you can say "Hey Siri."

In this brew:

• The AI Revolution: More than sci-fi

• AI in Action: From coding to courtrooms

• India's AI Startup Scene: Show me the money!

• AI in the Wild: Real talk from real humans

• The Bottom Line: Is AI your next girlfriend?

The AI Revolution: More than sci-fi

Let's face it, AI isn't just another tech buzzword to throw around at parties to sound smart. It's like that quiet kid in class who suddenly became a rock star. Goldman Sachs (the folks who love predicting stuff) says AI could boost our global GDP by a whopping 7%. That's $7 trillion – enough to buy everyone on Earth a lifetime supply of zyns!

But wait, there's more! AI is set to supercharge our productivity and might even automate over 300 million jobs. Before you panic about robots taking over, remember: that they still take too much time to figure out how to fold laundry properly.

AI in Action: From coding to courtrooms

Imagine a world where software writes itself. Sounds like science fiction, right? Well, according to guys (who chug Redbulls and Zyns to function) at Oak Ridge National Laboratory, AI might be coding better than humans by 2040. Tools like GitHub Copilot are already helping developers, acting like a super-smart coding buddy who never needs coffee breaks.

In the legal world, AI is shaking things up too. It's like having a tireless intern who can read through mountains of cases in seconds. But don't fire your lawyer just yet – AI recently cited some "imaginary" court cases, one might even say our CEO Ridhi drives better than Max Verstappen.

For every success story, there’s an example of an AI chatbot malfunctioning or an algorithm making a fabulously poor decision.

Creatives, don't think you're off the hook. AI is dipping its digital toes into writing, art, and even movie-making. It's like having a muse that never sleeps (or demands credit). But don't worry, – AI still struggles with understanding that we don’t fancy three armed belly dancers .

AI has its limitations. It's like that friend who knows a little about everything but doesn't understand any of it deeply. Sure, it can process tons of data, but it still can't grasp why we watch Yeh Jawani hai Deewani so many times.

India’s AI Scene: Show me the money!

In 2023, Indian AI startups experienced a significant shift in the landscape of funding and acquisitions. Despite a challenging economic climate, the ingenuity and strategic adjustments of these startups continued to attract attention and investment, albeit with some fluctuations compared to previous years.

In total, AI startups in India managed to raise $560 million across 25 funding rounds. This represents a sharp decline of 49.4% from the previous year. Notably, late-stage funding constituted 24% of these rounds but only 17% of the total value raised. Factors contributing to this downturn included economic slowdowns, regulatory changes, and increased market saturation, which intensified competition for funding.

Source: Analytics India Magazine

Despite the overall contraction in funding, several startups still managed to secure significant investments and a few companies made what look like on paper to be interesting acquisitions:

- Builder.ai: topped the list with a whopping $250 million from a Series D round, led by the Qatar Investment Authority. This platform aids organizations in developing applications using AI without the need for coding.

- Sarvam AI: focusing on developing generative AI for Indian languages, raised $41 million in Series A funding.

- Other notable mentions include Krutrim AI, HealthPlix, and Yellow AI, which secured substantial amounts geared towards enhancing AI-driven services across various sectors.

- Lenskart acquired Tango Eye to integrate visual AI technologies into enhancing customer experiences in-store and across product lines.

- GoKwik acquired Tellephant, launching KwikChat on WhatsApp to cater to diverse e-commerce functionalities.

Bengaluru emerged as a central hub for AI investments, attracting 29% of the total funds, underscoring its reputation as India's tech startup stronghold. This city's dynamic ecosystem continues to pull in substantial investor interest despite a lot of tech companies setting up in Hyderabad.

AI in the Wild: Real talk with real humans

We did some digging (and by digging, we actually talked to real humans), and here's the scoop on how AI is affecting different professions:

1. Coders: They're not quite ready to hang up their hoodies. While AI is great for mundane tasks, it still needs human creativity for complex problem-solving. Plus, someone needs to tell AI why using Comic Sans is never okay. (Leading Tool: Devin)

2. Writers: AI can churn out content faster than a caffeinated journalist on deadline. But when it comes to capturing the human experience or crafting a joke that doesn't sound like it came from a malfunctioning Speak & Spell, humans still have the edge. (Leading Tools: GPT-4o & Claude 3.5)

3. Lawyers: AI is great at sifting through legal documents, but it's not so great at dramatically yelling "Objection!" in court. Human lawyers are still essential for understanding nuances and looking good in suits. (Leading Tool: Harvey)

4. Marketers: AI is revolutionizing how we target ads. It's like having a crystal ball that works. But it still can't replicate that human touch that makes you impulse-buy things you don't need at 2 AM (Leading Tool: Flowcode).

5. Scientists: In fields like chemistry and biology, AI is speeding up research that used to take years. It's like having a lab assistant on steroids - which, by the way, AI could probably help develop too (Leading Tools: ESM, Alpha Fold)

The Bottom Line: Is AI your next girlfriend?

So, is AI just another overhyped tech trend, or will it be your next bae? Well it might be with the many AI chatbots running around the internet but the truth is that it is somewhere in the middle, probably hanging out with blockchain and virtual reality.

AI is undoubtedly transforming our world, but it's not quite ready for ubiquity. It's more like a really smart toddler – impressive in many ways, but still likely to make a mess if left unsupervised.

A Forbes article highlighted that while 2023 was the year of AI hype, 2024 is the year of AI practicality. It stresses the need for businesses to adopt AI strategically, focusing on practical applications that deliver real value.

As we move forward, the key will be finding the right balance between human creativity and AI efficiency. We need to be smart about how we integrate AI into our lives and work. After all, we don't want to end up in a future where robots write all our jokes. If robots can’t make babies how can they make dad jokes?

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Quick Sip Glossary (if you don’t wanna sound dumb amongst tech people):

• LLM: Large Language Model (not a Very Tall Person)

• NLP: Natural Language Processing (not Neuro-Linguistic Programming)

• Generative AI: AI that creates content (not AI that's good at genealogy)

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