The world of entrepreneurship has been transformed in a big way by the emergence of artificial intelligence. The numbers speak volumes. In 2023, AI startups worldwide raised an impressive $50 billion. And in Q1 2024, they had already raised $11.4 billion, roughly 17% of total global funding.

Investors definitely have a soft spot for AI, which explains why it's still attracting hefty funding during the venture capital winter. It's no wonder that at Y Combinator's demo days in 2024, 172 out of 247 projects were all about AI.

The rise of artificial intelligence – from niche to indispensable

AI has come a long way from her days in science fiction and academia. What was once considered niche and impractical has blossomed into a massive industry. Whether it's the voice-activated assistants on our phones or the recommendation algorithms that help us shop online, AI is now a vital part of our routines.

Generative artificial intelligence is the talk of the town, thanks to user-friendly programs like Google's Gemini (formerly known as Bard) and OpenAI's ChatGPT. This increase in popularity is expected to rise to the sky Gen AI market to $1.3 trillion by 2032, up from a modest $40 billion in 2022.

But it's not just consumer products – in highly regulated sectors like healthcare, finance and government services, Gen AI opens up unprecedented opportunities to automate tasks and synthesize data. Take, for example, HCA Healthcare, one of the world's largest healthcare providers, which is using it to speed up the process of drafting medical notes. And Moody's, the financial ratings agency, has wrapped up Its AI Gen Research Assistant to help customers discover new insights from credit research, data and analytics.

Startups are eager to make their mark and bring innovation to the table. According to Tracxn, has over 67,000 AI and machine learning projects, alongside the most established AI firms worldwide. The next wave of AI enablement market players is already here appearing. Startups help train, deploy, and evaluate Large Linguistic Models, and address critical AI concerns, from preventing hallucinations to addressing ethical dilemmas.

The big question is, how do you stand out in this sea of ​​competitors and how do you avoid getting lost in the crowd?

Connected: 4 ways to build a successful AI startup

PR pitfalls to avoid in a crowded market

EFFECTIVE public relations has emerged as a make-or-break factor for AI projects in a hypercompetitive environment. However, despite its importance, many startups miss the mark in PR, unknowingly sabotaging their efforts to attract and retain customers. These are the most common mistakes they make.

1. Putting all the eggs in the product basket

Having advanced technology is no longer enough to guarantee success. Startups tend to assume that their product will naturally speak for itself. Of course, having a superior AI solution is essential. However, neglecting the importance of strategic promotion and brand building it can be a costly oversight.

To gain traction, AI projects must take the lead in engaging with their target audience. This means reaching potential customers through various channels, such as social media, platforms such as Product Hunt, and popular media outlets, including Forbes, TechCrunch, Entrepreneur, and many others.

But it doesn't stop there. In a truly competitive environment, it's essential to stand out from the crowd. Following the same old routine as everyone else will not do your offer justice. An effective way to differentiate yourself is by enhancing not only your company's brand, but your own as well personal brand as a founder. Your reputation is the foundation of your influence, which can sometimes carry more weight than the product itself when it comes to attracting investors or partners.

2. Neglecting audience analysis

Another common mistake many AI startups run into is forgetting to personalize their communications for different audiences. Some projects go for a “the same for everyone” approach, hoping to catch everyone's eye. However, this broad strategy often dilutes the message and misses opportunities to connect with potential customers as well as investors.

Imagine there's a startup developing AI-powered chatbots that aim to serve both companies and individual users. However, in their PR efforts, they are only talking about creating personal content. They are overlooking enterprises by not emphasizing how their product can help in the preparation of marketing strategies and descriptions. Similarly, some AI projects may use complex jargon that only appeals to tech enthusiasts, rather than creating compelling stories that resonate with everyday users.

To avoid falling into this trap, market players must conduct thorough research, segment their audience based on relevant criteria such as industry, demographics and pain points, and adjust their PR strategies accordingly. As I have done mentioned In another article, think of your business as a Rubik's Cube. Like the different colors of the cube, your company can appear from multiple angles tailored to your audience. Always be ready to adapt and roll the dice.

Connected: The success of your PR campaign depends on these 3 essential elements

3. Premature start of PR campaigns

Timing is everything when it comes to PR. Starting too early it can do more harm than good. In fact, it's a common mistake for startups to launch media campaigns when they're still in the early MVP stages, because they often fail to meet customer and investor expectations. As a PR specialist, I often see businesses trying to give me answers about their activities, even when it's for their own sake. Journalists, partners, investors and end users, who have different goals and standards, are much more demanding to please.

Let's consider an example. Recently, Krutrim AI unveiled the beta version of its long-awaited LLM and an AI assistant similar to ChatGPT, but with a focus on Indian culture. Coming soon, AI chatbot FACE criticism from users who found inaccuracies in answers, ranging from general questions to translations, math problems and logical reasoning. Even the world ALLEGED will be produced by OpenAI, with the company attributing these issues to problems in the training dataset.

Krutrim's founder has a proven track record of success and has already founded two unicorns in India: Ola Cabs and Ola Electric. It is very likely that the company will improve its model and address any concerns raised. That may not be the case for smaller AI startups. It is better to wait until you have built a solid foundation with it clear positioningreliable processes and ideally some tangible results, before diving into PR.

4. Distribution and Subdelivery

In the race to attract attention and secure funding, some AI startups tend to exaggerate their products and capabilities. making big promises they can't really book. This often leads to disappointment among customers, investors and stakeholders when the startup fails to live up to its hype.

Last year, Inflection AI managed to raise over $1 billion at a $4 billion valuation, with heavyweights like Bill Gates, Eric Schmidt and Nvidia backing it. Inflection's flagship product was Pi, an AI chatbot designed to provide emotional support and advice to consumers. However, the rumors are now spinning around that the startup will abandon the Pi less than a year after its launch. It seems that the company was not able to fulfill its promises.

Sometimes, taking a more careful and transparent access over communication is preferable. Instead of making lofty claims, focus on highlighting real achievements and moments. By being honest and open, startups can build trust with their audience and investors, providing a more sustainable path to success.

5. Ignoring AI ethics and data privacy

In an AI-driven world, ethics and data privacy are more important than ever. We have even seen the rise of organizations like Israeli Society for Ethics in AIwhich work side by side with researchers, developers, policy makers and everyday users to ensure responsible innovation.

Sadly, not all AI startups are giving these concerns the attention they deserve in their PR efforts. This oversight can lead to serious consequences, including reputational damage and legal trouble. Whether it's mishandling personal data or failing to address ethical implications, negligence can turn potential customers away.

Take OpenAI, which is currently facing legal challenges. Recently, New York Times ignorant those for copyright infringement. They are too dealing with a host of lawsuits from authors, artists, music labels and others. Even one Pretend that the company improperly obtained massive amounts of personal data, such as medical records and information about minors, to train its ChatGPT model.

To avoid such risks, AI projects must make compliance and ethical behavior top priorities. Adhering to guidelines and demonstrating a commitment to responsible AI development is one of the key factors for long-term success in the complex AI landscape.

Connected: What will it take to build a truly ethical AI? These 3 tips can help.

Looking ahead

Artificial intelligence startups may face a tougher challenge CHALLENGE in the near future. Some leaders in the field are beginning to wonder if the industry is overworked, as only a handful of companies have been able to build profitable businesses. In times of uncertainty, effective PR can become the deciding factor between success and failure.

By eschewing common pitfalls and embracing strategic promotion strategies, AI startups can increase their visibility, attract both customers and investors, and ultimately gain a competitive edge in the marketplace. At the end of the day, it's all about showing the world what sets you and your AI solution apart.