Artificial Intelligence In Industry 4.0: A Global Startup Hub Activity Analysis

Artificial intelligence, along with the Internet of Things (IoT), enables the next generation of industrial automation in Industry 4.0. AI technologies include a diverse set of related and derivative tools, including neural networks, deep learning, and machine vision. These transform various aspects of Industry 4.0, such as fault detection, asset management, process optimization, etc. and also find applications in other industries, including automotive, additive manufacturing, and healthcare. For Industry 4.0 startups with IoT solutions, AI analyzes the data collected from sensors to streamline manufacturing processes.

A major obstacle for the greater adoption of AI among startups is the lack of big data, as compared to larger companies. The industry requires solutions that remain flexible, offer valuable insights from even small datasets, but are also scalable.

Top 5 Global Artificial Intelligence Startup Hubs

Using our Innovation Intelligence Platform, we analyzed the geographic distribution of global activity in artificial intelligence technologies. We identified 23 regional hubs (a hub is defined as the regional geographic center of activity for this topic. It covers the center point with a radius of 100km (62mi)) that observe high activity in developing artificial intelligence solutions for Industry 4.0.

According to our data, Silicon Valley, London, New York City, Singapore, and Los Angeles are home to 497 startups and emerging companies (we define startups and emerging companies as those founded after 2010) and account for 28 % of global startup activity. Let us have a look at some of the startups from these 5 top hubs.

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According to our data, a little over three-fourths of all activity in artificial intelligence for Industry 4.0 occurs in North America and in Europe. Recent developments in AI technologies combined with hubs for innovations in artificial intelligence and machine learning (ML) create favorable conditions for artificial intelligence to transform manufacturing and take Industry 4.0 to the next level.

Even though the rest of the world sees comparatively lower activity, Singapore, India, Germany, and Canada have significant examples of artificial intelligence solutions. As AI technologies mature, and more manufacturers adopt the IoT, its use for smart and safe production expands and makes it a staple in the industry.

#1 Silicon Valley | 205 Startups & Emerging Companies

Silicon Valley hosts as many startups and emerging companies working in AI for Industry 4.0 as the second and third top hubs in this list combined. The dominance stems from the already mature tech scene, with both industry giants and startups investing heavily in AI and IoT. The region also benefits from cutting-edge research in the field conducted at the University of California (UC) Berkeley and Stanford University.

Based in San Francisco, Invisible AI is a visual intelligence startup that uses computer vision to eliminate errors in manufacturing processes. Their AI-enabled cameras track workers’ body posture and movements to provide real-time feedback. It improves worker safety and ensures the correct and timely execution of different processes. Their solution doesn’t require coding, is easily deployable, and needs zero bandwidth to stream video feeds.

#2 London | 104 Startups & Emerging Companies

The United Kingdom recognizes advancing artificial intelligence and data revolution as one of the four grand challenges in its industrial strategy. It lags behind only the USA and China in terms of investments in AI, and most of the financing goes to startups and scaleups working in and around London. The capital city is home to hundreds of companies in several sectors, which makes it an attractive place for AI startups, whose solutions often cut across industries.

Cambridge-based startup Intellegens provides deep learning solutions that help Industry 4.0 companies optimize and transform production processes. Their software solutions improve the overall quality of assets and amplify the potential of manufacturing supply chains. It minimizes wastage of raw materials, maximizes production, and reduces downtime. It also leverages big data to discover candidate materials for superalloys, specialty chemicals, and additive manufacturing.

#3 New York City | 99 Startups & Emerging Companies

New York City (NYC) has the highest concentration of jobs in AI and machine learning, beating even Silicon Valley. Google, Facebook, Amazon, and Microsoft alone employ thousands of AI/ML engineers in the city, many of those working on solutions for Industry 4.0. NYC is also at the epicenter of discussions regarding AI-related legal and ethical questions that may transform how businesses use it.

Hailing from New York City, Okapi AI is a startup that uses machine learning to offer operational intelligence solutions for Industry 4.0. Their product automatically extracts data from existing systems and provides AI-generated insights to optimize day-to-day processes. It uncovers hidden links between disparate data sets and derives additional value from manufacturing processes. In addition to manufacturing, their solution applies to supply chains, customer relations, and real estate.

#4 Singapore | 45 Startups & Emerging Companies

Singapore recently announced a national AI strategy that aims at achieving leadership in developing scalable, impactful AI solutions for key sectors, relevant to both businesses and citizens. The city-state is investing in training more locals in AI skills and attracting top-tier global talent to meet this goal by 2030. Singapore houses hundreds of manufacturing facilities within its small territory. Thus, they foster the implementation of AI imperative to make manufacturing more effective.

The Singaporean startup FireVisor Systems offers cognitive automation solutions for Industry 4.0. Contrary to traditional automation, their machine learning solutions cognitively learn and improve with use. As a result, they are highly adaptable to any changes in specification, are more accurate than human workers, and need little data to train. It allows engineers to detect thousands of defects instantaneously, infer relationships between defect types, and predict shortcomings to minimize downtime.

#5 Los Angeles | 44 Startups & Emerging Companies

In recent years, Hollywood has turned to AI to produce realistic visual effects. Home to the movie industry, Los Angeles is also using AI technologies to disrupt Industry 4.0. A lot of the activity in the field here focuses on intelligent machines that combine the strengths of AI and IoT into the artificial intelligence of things (AIoT).

Augmentir is a Los Angeles-based startup that develops a connected worker platform for Industry 4.0. It merges augmented reality with machine learning to boost the productivity of frontline workers. The workers receive augmented instructions that assist them in identifying bottlenecks, completing assembly procedures, and reducing training time. Their solution also helps technicians setup equipment, carry changeover procedures, and conduct inspect checks. It is suitable for integration with existing enterprise management software and additionally comes with pre-built manufacturing templates.

What’s next?

Artificial intelligence is a driving force in Industry 4.0. It offers disruptive solutions in generative design, human-robot interactions, and predictive maintenance. Greater adoption of AI expands the scope and transforms Industry 4.0 by enabling the shift from simple automation to cognitive automation and further boost productivity.