Startups to play major role in AI landscape

HANOI: The development of artificial intelligence (AI) is changing the startup scene around the world, including Vietnam.

AI took centre stage for the first time in history during the recent World Economic Forum held in Davos, Switzerland in January, becoming one of the hot topics alongside issues like security, employment and climate change.

Within the vast realm of AI, generative AI (GenAI) stole the spotlight, showcasing the ability to simulate human intelligence and generate new content.

The technology is set to revolutionise human behaviour, impacting work, learning, entertainment and artistic creativity in profound ways.

In Vietnam, AI is booming and becoming a pivotal technology in the fourth industrial revolution (Industry 4.0).

At the beginning of 2021, Prime Minister Pham Minh Chinh issued the National Strategy for Research, Development and Application of AI until 2030, aiming to make Vietnam a leader in Asean and establish 10 reputable AI brands by 2030.

This has attracted investment from both tech giants and innovative startups, creating new opportunities for groundbreaking projects and business models.

Kai Yong Kang, business development manager for startups at Amazon Web Services, said that 2024 will be known as the “Year Of Products”.

Integration and AI use will become a widespread topic, extending beyond foundation models to encompass technologies like vector databases and orchestration engines.

There is a mass inflow of investment in GenAI startups in top technology hubs like Silicon Valley and Europe, said Vy Le, chief executive officer of Do Ventures.

However, the rapidly evolving AI market should also be approached with caution in terms of partnerships. It is common for investment funds to make small initial investments or wait for technology maturity.

Key factors to evaluate AI start-ups include competitive advantage, revenue model and the team behind it, Vy added.

Laura Nguyen, a partner at GenAI Fund, stressed that the top concern for investment funds is to ensure the sustainability of GenAI startup business models.

This is particularly important in the presence of tech giants like Google and Microsoft, who have access to massive amounts of data.

She also highlighted the need for GenAI entrepreneurs to protect their businesses from market risks while fostering innovation and creativity.

Experts are sharing optimistic insights on the progress of AI in Vietnam as technology companies make big investments.

Many university students are now GenAI founders and have already developed products that generate substantial revenues.

Vietnam’s start-up ecosystem has progressed remarkably in recent years.

Experts highlight the importance of creating a supportive environment and infrastructure for startup development.

With a stable economy, a fast-growing ecosystem, a favourable startup environment, low costs and support from government policies and large corporations, AI startups are flourishing.

Vy from Do Ventures noted the benefits of collaborations between GenAI founders and major corporations, which provide extensive systems and data. And Vietnamese corporations have policies to foster partnerships with startups.

Though the United States and China have a technological infrastructure advantage in AI, Vietnam can still compete in application development.

Valerie Vu, founder of Ansible Ventures, believes in the country’s talented engineers’ potential to create impactful AI applications.

Vietnam’s high-quality human resources excel in both software and hardware development, setting it apart. — Viet Nam News/ANN