SINGAPORE, September 27, 2024 – The AI Apex Asia Capital Connect Forum recently concluded, offering key insights into navigating the fine line between AI hype and real opportunity. With global AI investment expected to reach $200 billion by 2025, industry leaders came together to discuss strategies for sustainable growth and realistic expectations in this rapidly evolving sector.
The forum included two key panel discussions: “Accelerating AI Growth: Founders and Investors Reveal Their Playbook” and “Decoding AI: From Hype to Hope,” which brought together a diverse group of experts to share their views on balancing optimism and pragmatism in the world AI development exchange and investments.
Separating Hype from Hope: The Rise of Agent AI
Alex Ren, founding partner of the Fellows Fund, highlighted a paradigm shift that goes beyond the hype of generative AI: “We are seeing a transition from generative AI to what we call 'agentic AI.' This technology enables autonomous decision-making and Task execution and opens up incredible opportunities for startups to develop transformative business solutions.”
Alex further explained the concept of “vertical AGI” as a more realistic and immediately impactful approach: “We pursue companies that achieve AGI-like capabilities in specific areas such as customer support, search, marketing or accounting.” This is where we see the next wave of innovation, rather than that Chasing hype about universal AGI.”
Anchoring AI in practical implementation
Jianfeng Lu, Founder and Chairman of Wiz.AI, emphasized the importance of focusing on real applications rather than lofty claims: “The first priority should be the user scenario and customer use case. What kind of data can we collect to build effective AI models?”
This opinion was echoed by Shou Dong, CEO of ADVANCE.AI, who explained: “As an AI-powered fintech, we view large language models as tools to increase efficiency and reduce costs.” We are always exploring applications in customer service, debt collection and even telemarketing with a focus on measurable improvements in performance and efficiency.”
Realistic investment strategies in an evolving landscape
Matthew Ma, Managing Director of Gaorong Capital, addressed the changing requirements for AI startup founders in light of more tempered market expectations: “Today’s founders need to be well-rounded – they need to have a deep understanding of the technology, have strong business acumen and excellent Fundraising skills. The days of securing funding based on hype alone are behind us.”
Matthew also noted a shift towards more informed valuation metrics: “For deep tech companies, valuations are now driven by the scarcity of talent and technology rather than hype. Investors are looking for clear paths to commercialization and sustainable business models.”
Balance between innovation and regulation
Helena Ma, consultant at the Milken Institute and the AI Apex Foundation, emphasized the importance of regulatory frameworks for creating a sustainable AI ecosystem: “Strict regulatory frameworks can promote a more mature and secure AI ecosystem.” This perspective underscores the need for responsible AI -Development that stands up to scrutiny and delivers long-term value.
Identifying real opportunities in emerging markets
Shou Dong pointed to untapped potential that goes beyond the hype in Southeast Asia: “There are still huge opportunities in sectors like SME financing. With over 60 million small businesses in Indonesia and the Philippines alone, there is a huge market for AI-driven financial services tailored to this underserved segment.”
A roadmap for the future of AI
Weiru Chen, Professor of Strategy at CEIBS, outlined three key milestones for the future of AI that balance ambition and achievability:
1. Increasing human productivity
2. Promoting new, high-growth business areas
3. Generate unprecedented value through disruptive innovation
Leo Jiang, founder of AI Business Asia, emphasized the importance of basing AI development on tangible results: “The key takeaway for founders is to meet clear market needs with demonstrable potential for unicorn-level growth, regardless whether they use AI, blockchain or another technology. It’s about solving real problems, not chasing buzzwords.”
As the AI landscape continues to evolve, the AI Apex Asia Capital Connect Forum serves as a critical platform for innovators, investors and industry leaders to share ideas and shape a future where AI delivers on its promise without falling prey to unrealistic hype . By focusing on practical applications, long-term value creation and ethical considerations, stakeholders can better position themselves to benefit from the AI revolution while navigating its complex challenges and opportunities.
About AI Apex Asia
AI Apex Asia is a leading artificial intelligence community dedicated to advancing AI technologies and applications in Asian markets. With a focus on innovation, regional expertise and responsible AI development, AI Apex Asia is committed to driving the adoption of AI solutions that address unique challenges and opportunities across diverse Asian industries.
