A new study shows that only 40% of European startups, who claim to use artificial intelligence in their business, actually do. Stunning statistics were compiled by MMC, a London-based venture capital firm, as part of a study on the use of AI in business.

Of the 2,830 European startups that classified themselves as AI companies, only 1,580 exactly fit this description.

“We looked at every company, their materials, their product, the website, and product documents,” David Kelnar, head of research for MMC commented to Forbes. “In 40% of cases, we could find no mention of evidence of AI.” In such cases, he added, “companies that people assume and think are AI companies are probably not.”

Kelnar added that in some cases it was not a false business advertisement, but the fact that third-party sites classified them as such, and companies did not bother to deny it.

Investors are interested in AI

It seems that the motivation to correct the error is small when startups that are labeled as working in the field of artificial intelligence, attract 15-50% more funding than other technological startups. Startups may both intentionally and unintentionally hope for the success of artificial intelligence in order to stimulate business and investment.

The purpose of the MMC research was to provide a holistic picture of how artificial intelligence is used in business today. The report was written after several months of research and in-depth surveys in all industries.

The use of AI is steadily increasing

The full MMC report, sponsored by Barclays Bank, provides an overview of what AI is and how it is used in business, and also gives an idea of how it can be used in the future.

It is interesting to note that the report highlights that most of the artificial intelligence technologies that businesses are beginning to use now have been around for a long time, but have previously been distributed unevenly. New tools allow businesses of any size to take advantage of AI.

These tools, as a rule, are not developed by the companies themselves, but are purchased from external developers. Almost half of large companies buy from third parties, and do not build their own. Only a third said they intend to create their own solutions for AI.