73% of AI startups are just prompt engineering
A recent analysis of 200 AI startups revealed that 73% are not developing novel AI technology but are instead focused on prompt engineering. These companies often rebrand existing open-source models or use APIs without significant innovation. The study suggests that many of these startups are misrepresenting their core capabilities to attract investment and customers. AI
IMPACT Highlights potential overvaluation and lack of true innovation in a segment of the AI startup landscape.