Midyear Tech Outlook: Where Industry Activity is Heating Up

Summary

The midyear Tech Outlook webinar by CB Insights covered emerging tech trends, including generative AI's security risks, climate-focused insurtech, and AI-powered humanoids. Key points highlighted the spike in cybersecurity discussions around generative AI, the role of insurtech in extreme weather events, and the transformative impact of generative AI on humanoid robots. The webinar also discussed investment trends, buyer insights, and the potential for rapid adoption of AI technologies across various industries.

Takeaways

• 📊 CB Insights is a platform that provides comprehensive data, expert insights, and work management tools to help companies make informed technology decisions.
• 🔗 They offer a free trial for their platform, allowing users to access their services for seven days to gain more insights.
• 🌟 Kenya Watson, an analyst at CB Insights, discussed the emerging security risks created by generative AI, highlighting the spike in cybersecurity discussions related to AI in recent years.
• 📈 Generative AI's rapid development has outpaced security discussions, leading to a growing market for AI-focused cybersecurity startups.
• 💡 The presentation mentioned threats such as data poisoning, model attacks, and deepfakes, emphasizing the challenges of securing large language models (LLMs).
• 🚀 There is significant corporate venture capital involvement in the machine learning security market, indicating the strategic importance of this technology for both tech and defense industries.
• 💡 Buyers in the cybersecurity market prioritize solutions that can protect AI models without needing access to the underlying data or model itself.
• 🌡️ Chris, another analyst at CB Insights, discussed how extreme weather presents opportunities for insurtech companies, with a record number of billion-dollar weather disasters in the US in 2023.
• 🌱 Climate and weather-focused insurtech startups are raising significant funding, indicating a growing market and the importance of unique data in risk management.
• 🤖 Benjamin, an industrial analyst, highlighted the rise of AI-powered humanoids designed for work, with record funding levels and big tech companies setting the stage for their development.
• 🚗 Tesla's vision for the future includes a strong focus on AI and robotics, with Elon Musk expecting billions of humanoid robots in the market, potentially transforming various industries.

Q & A

What is the main focus of CB Insights' midyear Tech Outlook webinar?

The main focus of the webinar is to discuss various technology trends, including the security risks created by generative AI, the impact of extreme weather on insurtech, and the advancements in AI-powered humanoids.

How does CB Insights define its role in assisting companies with technology decisions?

CB Insights helps companies make smart technology decisions by providing comprehensive data, expert insights, and work management tools that enable them to discover, understand, and make informed technology decisions.

What was the significance of OpenAI's release of the GPT-3 model in July 2020?

The release of the GPT-3 model by OpenAI in July 2020 was significant as it accelerated interest in large language models and marked a turning point in the development of generative AI.

What types of threats have emerged from generative AI according to the webinar?

The webinar mentions threats such as data poisoning, attacks against the model itself, and security concerns arising from the outputs of the model, including deep fakes used for disinformation or identity fraud.

Why is the security discussion around generative AI lagging behind its development?

The security discussion is lagging because generative AI has been developing rapidly, and the understanding of potential threats and mitigation strategies has not kept pace with the technological advancements.

What does the earnings transcript mention graph indicate about the relationship between cybersecurity and generative AI discussions?

The earnings transcript mention graph indicates that discussions around cybersecurity and generative AI spiked in the last four quarters, showing a growing awareness and concern about the security implications of generative AI.

How does CB Insights categorize the investors in the machine learning security market?

CB Insights categorizes the investors in the machine learning security market into two buckets: big tech companies and defense investors, both of which show heavy corporate venture capital involvement.

What are the key capabilities that buyers in the AI generative security market are looking for in a vendor?

Buyers in the AI generative security market are looking for vendors that can protect AI models without needing to access the data or the model itself and those that can rapidly adapt to new and emerging threats.

What is the role of satellite and geospatial data in climate and weather risk insurtech?

Satellite and geospatial data play a key role in climate and weather risk insurtech by providing high-resolution aerial images and data that help insurance companies better understand and manage risks related to extreme weather events.

How does the webinar presenter, Chris, describe the future of insurance technology in relation to climate and weather risk?

Chris describes the future of insurance technology as one where climate and weather-focused insurtechs will continue to emerge, insurers will increasingly seek opportunities to acquire unique data, and insurtechs focused on differentiated business opportunities will continue to raise funding.

What are some of the industries that AI-powered humanoids are expected to impact in the near future?

AI-powered humanoids are expected to impact industries such as manufacturing, logistics, retail, and healthcare, particularly in structured environments like factories, warehouses, and elderly care facilities.

What is the current price point for humanoid robots and what is the expected future target price?

The current price point for humanoid robots is around $100,000, with companies targeting a future price point of around $20,000 to $50,000 to make them more accessible for wider adoption.

How does generative AI contribute to the advancement of humanoid robots?

Generative AI contributes to the advancement of humanoid robots by helping them learn and interact more intelligently with their environment through improved training processes, better inference capabilities, and enhanced natural language processing.

What is the role of big tech companies in the development and adoption of humanoid robots?

Big tech companies are laying the groundwork for humanoid robots by developing robotic platforms, investing heavily in the space, and creating software models and infrastructure that support the adoption and functionality of humanoid robots.

What are some of the key takeaways from the webinar regarding the market for AI-powered humanoids?

The key takeaways include the enabling role of generative AI in learning and interaction, the aggressive involvement of big tech companies in setting the foundation for humanoid robots, and the potential for rapid adoption across various industries, possibly even entering homes in the future.

Outlines

00:00

🌟 Tech Outlook Webinar Introduction

Ashley, the marketing manager at CB Insights, opens the midyear Tech Outlook webinar, providing an overview of the company's mission to aid businesses in making informed technology decisions with data-driven insights. She introduces a free trial offer for the CB Insights platform, encourages client engagement with the customer success team, and sets the stage for the panelists to discuss emerging tech trends.

05:00

🔒 The Rise of Cybersecurity Threats from Generative AI

Kenya Watson, a lead analyst at CB Insights, delves into the burgeoning security risks associated with generative AI. She presents data illustrating a surge in cybersecurity discussions alongside the rapid development of generative AI, highlighting threats such as data poisoning, model attacks, and deepfakes. Kenya underscores the challenges of ensuring the security of large language models, noting that new threats will continue to emerge, necessitating adaptive security solutions from vendors in the space.

10:02

💡 Venture Capital Interest in AI-Focused Cybersecurity Startups

The segment explores the significant corporate venture capital involvement in AI-focused cybersecurity startups, indicating a strategic interest in the technology's development and its relevance to national security. Kenya discusses the importance of startups in the machine learning security market, their partnerships with tech giants, and the criteria buyers consider when selecting solutions, such as the ability to protect AI models without accessing sensitive data.

15:02

🌪️ Extreme Weather Events and the Growth of InsureTech

Chris, a senior analyst at CB Insights, examines the correlation between extreme weather events and the rise of InsureTech, focusing on how these events have led to costly insurance claims. He highlights the funding successes of climate and weather-focused startups, suggesting that the insurance industry is actively seeking innovative solutions to manage climate risks. Chris also discusses the potential for insurers to acquire unique data to better understand and mitigate these risks.

20:04

🤖 Advancements in AI-Powered Humanoid Robots

Benjamin, an industrial analyst, discusses the momentum in the humanoid robot market, noting record funding levels and the influence of generative AI in enhancing the robots' intelligence and capabilities. He outlines the roles of big tech companies in supporting the development of these robots and the potential industries that humanoid robots could revolutionize, emphasizing the significance of generative AI in training and inference to improve the robots' interaction with their environment.

25:04

🚀 Future Prospects of Humanoid Robots and Generative AI

The final paragraph synthesizes the transformative impact of generative AI on humanoid robots, the aggressive involvement of big tech companies in setting industry foundations, and the anticipated widespread adoption of humanoids across various industries. Benjamin predicts a rapid integration of humanoid robots in the coming decade, drawing parallels with the post-World War I automobile boom, and concludes the webinar with a Q&A session that touches on cybersecurity trends and the role of technology in addressing climate change.

Keywords

💡Tech Outlook

Tech Outlook refers to a forward-looking analysis or perspective on the technology sector, often including predictions and trends. In the video, the Tech Outlook is the central theme of the webinar, with discussions on future technology trends and their implications for various industries.

💡CB Insights

CB Insights is a company that provides data-driven insights into various industries, including technology. In the script, CB Insights is the host of the webinar, and their platform is highlighted as a source of comprehensive data and expert insights for making technology decisions.

💡Generative AI

Generative AI, or generative adversarial networks (GANs), are a class of AI algorithms used in unsupervised learning, where they generate new data samples. The video discusses the security risks created by generative AI, such as data poisoning and deep fakes, and how these threats are emerging due to the rapid development of the technology.

💡Cybersecurity

Cybersecurity involves the protection of internet-connected systems, including hardware, software, and data, from attack, damage, or unauthorized access. The video script mentions the spike in cybersecurity discussions in relation to generative AI, indicating a growing concern over the security implications of AI advancements.

💡Data Poisoning

Data poisoning is a type of cyber attack where an adversary intentionally introduces incorrect data into a machine learning model's training process to affect its performance. In the script, it is cited as one of the threats that have emerged from generative AI, emphasizing the need for robust security measures.

💡Deep Fakes

Deep fakes are AI-generated media, such as videos, voice recordings, and images, that are fabricated to appear real. The script discusses deep fakes as a security concern because they can be used for disinformation or identity fraud, highlighting the ethical and safety challenges posed by generative AI.

💡InsurTech

InsurTech refers to technology that aims to improve the efficiency of insurance companies by automating processes and providing data-driven insights. The video script discusses InsurTech in the context of extreme weather events and how these technologies are responding to the increasing costs associated with such events.

💡Climate and Weather Risk

Climate and weather risk pertains to the potential financial and operational impacts of climate change and weather events on businesses and societies. The script highlights how InsurTech companies are focusing on these risks, developing products that help manage and mitigate the effects of extreme weather and climate change.

💡AI-Powered Humanoids

AI-Powered Humanoids are robots designed to perform tasks that typically require human-like intelligence and physical capabilities. The video discusses the advancements in humanoid robots powered by generative AI, which are enabling them to learn and interact more effectively with their environment.

💡Generative AI Security Market

The Generative AI Security Market refers to the segment of the cybersecurity industry focused on protecting AI models and algorithms from adversarial attacks. The script mentions the rise of startups in this market, indicating a growing industry response to the security challenges posed by generative AI.

💡National Security

National Security involves the protection of a nation against non-military and military threats, including those that could compromise the nation's safety and economic stability. The script connects national security to the investments made by defense corporations in generative AI security, suggesting that the technology's security implications are being viewed with high importance at a national level.

💡Big Tech

Big Tech refers to the largest technology companies that have extensive influence over the market and society. The script discusses Big Tech's involvement in the development of AI and InsurTech, indicating their significant role in shaping the future of technology and its applications.

💡Parametric Insurance

Parametric Insurance is a type of insurance where the payout is triggered by the occurrence of a specific event or parameter, without the need for claims assessment. The video script mentions parametric insurance products offered by InsurTech companies, particularly in response to climate and weather risks.

💡Corporate Venture Capital (CVC)

Corporate Venture Capital refers to the venture capital investment arm of corporations, which invests in startups to foster innovation and strategic growth. The script notes heavy CVC involvement in the InsurTech and AI security markets, indicating the strategic interest of corporations in these emerging technologies.

💡AI Model Protection

AI Model Protection involves safeguarding AI models from various security threats without needing to access the underlying data or model itself. The script highlights this capability as a key requirement for vendors in the AI security market, as demonstrated by buyer interviews and their criteria for choosing solutions.

Highlights

CB Insights' midyear Tech Outlook webinar discussed emerging tech trends with a focus on AI and cybersecurity.

CB Insights provides data-driven insights to help companies make informed tech decisions.

A free trial link for CB Insights' platform was provided for participants to gain deeper insights.

Generative AI has created new security risks, with discussions on cybersecurity peaking in the last four quarters.

The development of generative AI accelerated with the release of OpenAI's GPT-3 model in July 2020.

Threats from generative AI include data poisoning, model attacks, and deepfakes used for disinformation or identity fraud.

LLMs may never be fully secure, as demonstrated by researchers tricking models to generate harmful instructions.

The machine learning security market is growing, with startups focusing on cybersecurity solutions for AI models.

Investment in AI cybersecurity is heavily influenced by corporate venture capital, indicating strategic interest.

Buyers of AI security solutions prioritize the ability to protect AI models without accessing the data or model itself.

Spending on AI security solutions is expected to grow with the adoption of generative AI models in enterprises.

Extreme weather events present opportunities for insurtech, with a record number of billion-dollar disasters in the US in 2023.

Climate and weather-focused insurtech startups raised significant funding, indicating a growing market.

Insurtech companies are leveraging satellite and geospatial data to better understand and manage climate risks.

AI-powered humanoid robots are gaining momentum, with record funding levels and advancements in capabilities.

Generative AI is a key enabler for humanoid robots, improving their learning and interaction with the environment.

Big tech companies are investing in and developing platforms to support humanoid robot technology.

Boston Dynamics remains a leader in humanoid robotics, with new advancements in mobility and AI.

The price point for humanoid robots is becoming more accessible, with targets between $20,000 to $50,000 in the future.

Manufacturing and logistics are the primary industries expected to adopt humanoid robots in the near future.

Tesla views humanoid robots as key to its future, with ambitious plans for mass production and deployment.

Transcripts

hi everyone and thank you for joining us

today for our midyear Tech Outlook

webinar my name is Ashley and I'm a

marketing manager at CB insights I'll be

kicking everything off before handing it

over to our panelists for the

presentation next slide and a little bit

about CB insights CB insights helps the

world's leading companies make smart

technology decisions with data not

opinion our technology insights platform

provides companies with Comprehensive

data expert insights and Work Management

tools that enable them to discover

understand and make technology decisions

next

slide and if you're interested in doing

a free trial to get even more insights

I've added a link to the chat that you

can follow with the trial you'll receive

free access for seven days to our

platform and if you're a client and you

have specific questions about what you

see today feel free to reach out to your

dedicated customer success team member

next

slide and now it's time for me to

introduce our speakers Kenya is a lead

analyst covering emerging Tech trends at

CB insights Chris is a senior Analyst at

CB insites and researches the global

insured Tech landscape and Benjamin is a

senior lead Analyst at CB insights with

a focus on Advanced manufacturing

semiconductors Aerospace and defense and

I'll hand it over to them to get started

thanks Ashley hi everyone my name is

Kenya Watson I'm an analyst here at CBN

sites on our emerging Tech Team and

today we're going to be be talking about

the new security risk created by

generative AI um so this is a trend that

we've highlighted in a few reports we've

done this year so today we're just going

to take a look at some data points we

have surrounding this trend and kind of

where the market is at

today so the first data point I want to

bring to your attention is this earnings

transcript mentions graph um which shows

that cyber security and generative AI

discussions spiked in the last four

quarters so this is significant because

when you look at the timeline of how

generative AI has developed back in July

2020 that was when open AI released

their gpt3 model which accelerated

interest in large language

models January 2022 was when chat gbt

hit 100 million monthly active users and

so after that that's when the

development of the technology really

took off and because it's been

developing so rapidly kind of the

security discussion has lagged you as

you can see here there's about a year

and now it's starting to catch up so

this has been a trend that we're

tracking and so just here are some

examples of some threats that we've seen

emerge from Juna of AI um we're not

going to go through all of these just in

the interest of time but um just a few

examples here um you can have threats

against the data for instance data

poisoning That's if a bad actor were to

insert erroneous data into the training

data for the large language model that

would affect the performance of the

model you can have attacks against the

model itself so when example example

would be um hacking into the development

environment and changing the model

weights that also would affect the

model's

performance and then you can have

security concerns that come out of

outputs of the model itself um so one

here that most people are familiar with

is deep fakes so that's AI generated U

media like audio video

images those in and of themselves aren't

necessarily um security threats but it's

how they're used for instance if they're

used for disinformation or for identity

fraud things like

that so these are just some examples of

some threats that we've seen already but

the problem is the top L limbs may never

be fully secure so a group of

researchers they did this study they

created an algorithm and it was able to

trick multiple llms to generate a

step-by-step plan to destroy Humanity

despite that being against the models in

built safety

protocols and so we have here on the

right a quot from the researchers and

they it's unclear whether such Behavior

can ever be fully patched by llm

providers so what does this mean for the

space um one it means that list of

threats I showed you on the previous

slide is not exhaustive we're going to

continue to see new threats emerge and

secondly it means vendors in the space

coming up with Security Solutions will

need to be able to rapidly adapt to new

and emerging threats in order to stay

relevant but just to talk about what

startups are actually doing in the space

so um we we've seen a rise of gen

focused cyber security startups emerging

they fit into a market we have at CBN

sites called The Machine learning

security Market um so that's any company

that is making a solution um that is

protecting against adversarial attacks

against machine learning models and

algorithms including the LMS that

generative AI applications are built on

top

of and so you can see here on the right

we have this graphic um this is a

screenshot of a product we on our

platform called an execution strength

positioning Matrix and so we use data

points from these companies to rank them

against each other so just to give an

example um for instance deep keep keep

this startup here if you want to find

out more about what sets apart one

company from another if you look at

their profiles um we have the ability to

generate insights on these companies so

from Deep keeps profile we learn that

it's Partnerships set it apart from

other vendors in the space so you can

see here there working with major Tech

players like Nvidia IBM research adbs um

and that's one data point that goes into

their ranking for putting them in the

leader

quadrant so just to zoom back out and

looking at the space as a whole again

let's take a look at who's investing in

these

startups and so when we analyze the

investors of the machine learning

security Market what we found was that

there was Heavy corporate Venture

Capital involvement um so typically CBC

involvement points to a couple of things

one of them being um those corporations

want to track or help develop that

technology because it has relevance to

their own plans and so when we look at

the cbcs that are getting involved in

the space they tend to fall into two

buckets um one is the big Tech bucket so

if you see here all the way on the right

in the select CBC investors column you

see IBM M12 that's Microsoft's Venture

arm Samsung are investors in companies

in this market and this makes sense um

because big Tech they're kind of the

leaders in developing a lot of the

generative AI infrastructure and models

and so of course security has relevance

to their plans and so then the other

bucket of CBC investors and this is the

one I find really interesting is we see

these defense investors getting involved

in this market so as you can see in that

same column Lockheed Martin Ventures boo

Allen Ventures investing in companies

here and so we learned just from seeing

these Investments and reading the press

releases um generative AI security is

actually seen as a matter of National

Security and so um we think these

factors and these interests from these

players signals um future growth for

these companies and this Market as a

whole and just very quickly flipping to

the other side so we looked at kind of

the investors now look let's look at

who's buying these Solutions um so we

have buyer interviews on our platform

where we interview people who are buying

these um Solutions and ask them about

their evaluation CR criteria um what

made them choose one vendor over another

and these interviews revealed some key

capabilities that vendors need to

succeed in this market the first is the

ability to protect an AI model without

actually needing to access the data or

the model itself so we see here on the

left this quote from an aerospace and

defense Corporation um that ended up

purchasing hidden layer they chose that

vendor specifically because they needed

a solution that allowed the the ability

to use AI that didn't tap into certain

key security data that they

have then here on the right we have a

separate buyer so this came from a

Fortune 500 company that ended up

purchasing Lira um and the reason they

picked that vendor was that Lara has a

good system for responding to newly

discovered vulnerabilities so thinking

back to what I said earlier with the

llms not being fully secure this ability

to adapt to new threats that emerge will

be um will grow in importance in this

space and so our prediction just as more

Enterprises adopt um AI generative AI

models and solutions we think that we

will see spend on Security Solutions

grow with Rising adoption um so here we

aggregated the buyer interviews and the

contract amounts that these buyers are

paying for these various Solutions and

you can see here that companies are

paying anywhere from 10,000 to 800,000

so close to a million to protect their

AI models on the discrepancy in this

market because it's so nent there's a

lot of early stage companies the

solutions very widely so that's why we

see a lot of discrepancy in

pricing so just to sum it all up three

key takeaways I want to leave you with

the first um key growth drivers for this

Market will be one Enterprise adoption

of AI models two big Tech Ambitions and

three National Security

concerns the second protecting

intellectual property is a key

requirement for buyers so again just

like we saw in those interviews these

customers want solutions that can

protect their models without needing to

access the data or the model

itself and then finally proactively

identifying new threats will become

increasingly important especially as we

find that llms may not be fully

secure so with that I'll pass it over to

my colleague Ben uh I'm sorry I'll pass

it over to Chris to talk about extreme

weather and Tech great thank you Kenya

my name is Chris and as Ashley mentioned

I research in sh Tech here at CB

insights really excited to talk through

one of the trends we detailed on our

report extreme weather is an opportunity

for insure Tech so on the next slide we

see that the US saw a record number of

billion dooll weather disasters in

2023 and you know this follows a broader

trend of increasingly costly weather

disasters over the past 10 10 20 years

or so particularly for severe storms and

many of the costs for these disasters

are paid by insurance companies in the

form of claims so insure techs have

taken note of this trend and many of

them have centered their businesses on

climate and weather risk and when we

look at the funding picture on the next

slide we can see that climate and

weather focused startups raised two of

the top insurtech deals in Q2 so far and

keep in mind we still have about two

weeks left in the quarter but two of the

top deals here isai and arble were

raised for climate and weather risk and

this is significant since these deals

occurred as we see here on the next

slide following the lowest quarter for

insure Tech funding in years now look

insure Tech fundings found a new normal

and Deals particularly the big ones are

hard to get median deal size is about

the same we should take note of the

insur Tex to do raise a lot of money so

if that context let's zoom in a little

bit more closely at our two INF Focus

climate and weather ins shx on the next

slide we can see that isai is focused on

scaling satellite powered data products

so isi which again just raised 93

million build satellite systems that

collect High powerered aerial images

from across the world day or night

Beyond IAI beyond that I should say IAI

previously received investment from

Tokyo marine and they participated in

accelerators at Lloyds and

Nvidia insurance companies use IIs

product for flood and Wildfire risk as

an example they partnered with Swiss re

and Guy Carpenter last year to introduce

a parametric flood insurance product in

New York City and if you're unfamiliar

with parametric insurance it's coverage

based on if then logic that

automatically issues a payment

determined by data driven parameters so

pretty unique both for the business

model and the data and pretty strong

engagement from leading insurance

companies then looking at the next slide

here we can see that Aral is focused on

scaling PNC products so Aral which again

just raised $60 million offers

parametric Insurance products

particularly focused on agriculture and

energy which is a bit more Niche now

with this funding they're looking to

scale and expand their offerings across

PNC particularly for home insurance

which is broader they're also looking

more globally as well and Beyond just

these two companies which raised a whole

lot of money we can see here on the next

slide that multiple early stage insure

techs focused on climate and weather

risk have also raised funding in Q2 so

far so very new companies relatively

and these companies have fairly diverse

business models and focus areas so on

the left here you'll see matiga they

offer business they offer models to

understand climate risk related exposure

like flooding and wind risk Clover there

are brokerage and they sell parametric

products they were also part of y

combinators winter 2022 batch seven

analytics they offer risk products

particularly focused on flood risk

including a pricing application and

pricing for insurance and fora they're

focused on loss control specifically

Home Inspections that provide insurance

companies with data again data is the

key Point here and there is a lot of

opportunity here and when we zoom out

and think about the total Universe of

potential companies here on the next

slide we can see that satellite and

geospatial data is a key Focus for

climate and weather risk now not all the

companies I mentioned today apply to the

space but climate and weather insurance

is a space undoubtedly being transformed

by Tech developments here markets like

wildfire and flood intelligence they

have direct connection to an insurance

company's bottom line so whether it's an

established company like isai or whether

it's a seed stage card up startup like

seven analytics the underlying Tech

developments make it possible to

underwrite and manage the underlying

risks more effectively so let's take a

moment and pause where are we going why

does all this matter

and on the next slide here you can see

our signals for the future of insurance

the first of which is that climate and

weather focused insure teex will

continue to emerge now listen when we

think about this space specifically

we've seen an increase in the cost of

these events there's a lot of

opportunity for Innovation which will be

driven largely by insurance and the

insurance industry I should say in

search of new business and opportunities

to improve their financials then when we

think about the technology impact that

leads to our second signal and this is

that insurers will increasingly look for

opportunities to acquire unique data

think about the companies I mentioned

IAI focused on data collection from

satellites arble focused on data from

parametric products this data is what

enables the insurance company to better

understand the underlying risk and

there's a lot of opportunity here for

something as impactful and something

with so many possibilities like flood

wildfires and other natat events and

when we zoom out even further at the

broader andure Tech picture we see our

third signal insure Tech's focused on

differentiated business opportunities

will continue to raise funding this is

broadly across insure Tech but climate

and weather risk well it's a great space

to watch in particular given the company

diversity and the potential impact they

can have both for the industry and more

importantly for the policy holders they

cover so if that got I'm going to pass

it off to Ben and he's going to discuss

AI powered

humanoids so hello everybody my name is

Benjamin and I'm the Industrials analyst

here at CB insights so AI powered

humanoids uh very interesting these are

ones that we're good talking about that

are designed to do work so on the next

slide we'll see that earlier this year

we actually looked at the

emerging Advanced manufacturing markets

gaining the most momentum early stage

markets so think angel seed series a

rounds and interestingly enough humanoid

robots were the lead here they had the

most funding by far when we step out a

slide or step out a level look at the

next slide we'll see that when it comes

to overall funding they are approaching

$800 million so far this is record

funding levels for humanoid robots we're

also on Pace to surpass the deals last

year so this is really starting to ramp

up and there's a few reasons why but

first the at a couple of the companies

that are doing this the best on the next

slide we'll see that multiple companies

have raised over $100 million there's a

big lead with figure that has 854

million out of $2.7 billion valuation it

was the highest value unicorn in q1 of

this year but also multiple other

players over the $100 million Mark but

just take note some companies here like

Sanctuary Ai and abtronic even though

they have not raised as much money

they're still making really major and

significant developments in this space

so on the next slide we're going to just

take take a step back and look at

humanoid robots uh overall so it first

started in the 1960s and they were kind

of

unsophisticated and the early 2000s with

Asimo by Honda we started seeing what

the physical capabilities of these

things could do and that really

propelled further with Atlas by do

bosson Dynamics in the 2010s you

probably all seen the dancing robot

videos if you haven't definitely take a

couple minutes check it out it's very

entertaining but it was extremely

impressive with its capabilities but

throughout that entire time the brain

the humanoid brain could not match the

humanoid body and that is starting to

change today for one reason and one

reason alone on the next slide we'll see

that it's really generative AI that is

helping humanoids take off so

interestingly this is from our one of

our new product releases called a

personal briefing that

it releases every few days you get an

updated briefing that's tailored to what

you're looking for and I just

conveniently had one while we preparing

for this webinar on Nvidia about their

robot Revolution and how they're gaining

significant traction within this

industry and generative AI is really

helping in a couple regards so you have

for one the training it's helping make

the robots more intelligent when it

comes to a training process they can

watch

and learn you can also have people that

will control it like remotely and then

the robots can learn that way versus

having the hard code everything which is

pretty much impossible to account for

all scenarios there is also inference

the robot being able to understand its

surroundings better it's much much

better because of generative AI

capabilities and also we have natural

language processing there are

demonstrations are not sophisticated

demonstrations but there are

demonstrations right now of companies

where you ask a ro to hey move these

boxes over here or to like unload this

and it can do it again it's slow it's a

work in progress but it's still

extremely

impressive and it's not just in video

that's involved so on the next slide

we'll see that really all of big Tech is

laying the groundwork for humanoid

robots so you have companies like Amazon

for example that has a partnership with

agility Robotics and they're piloting

their digit robot in one of their

automated Test Facilities you also have

companies like Google meta Microsoft

Nvidia open AI that are developing

robotic platforms to help the humanoid

companies further adopt the software

architecture and infrastructure so you

like Nvidia for example recently relased

their project rout which is a generative

AI Foundation model specifically for

humanoids other companies are investing

a lot in this space think Intel Samsung

and then we have Tesla which is unique

that it's developing its own humanoid

robot and we'll discuss them a little

bit more later on the next slide we'll

see that the traditional leader in this

space is Boston Dynamics but a lot of

other companies are graining ground

because of the new generi capabilities

helped with big Tech a lot of funding in

this area but bosson Dynamics is still

one of the main leaders and they

actually recently L their new Atlas

robot if you haven't seen the video it's

a 30 second video check it out it's by

far the most impressive thing that we've

seen from a Mobility perspective with

the humanoid it also uses AI we don't

really know the details of that yet

there's not too much released but it's

definitely a big step up from their

previous version in the 2010s and it

looks like this new one is designed to

do

work we'll also see on the next slide

that like the price point for these is

actually kind of reasonable so right now

we're seeing around $100,000 on the ones

that are out out there and that's from

like optronic agility figure and so on

but companies are targeting in the

future around 20 to

$50,000 as a price point so Elon Musk

said with the Optimus humanoid from

Tesla they're looking at 20K put on the

Elon must safety Factor so multiply that

by 1.5 to two that gets you around 30 to

$40,000 seems perfectly reasonable like

I don't see a reason why a humanoid

should cost more than a small car

especially because it's likely we're

going to have not just millions or tens

of millions but maybe hundreds of

millions of these in the marketplace

across manufacturing sites warehouses

Healthcare and so many more and like on

the next slide we'll see actually some

of these

opportunities companies are by far

targeting manufacturing the most and

actually it's specifically in logistics

and Manufacturing that is most popular

so moving boxes within a factory from

one place to another for example

Logistics itself think warehouses is

also o increasingly important retail

like more so St uh stocking shelves or

back of the store uh Logistics

operations another big one Healthcare

think Elderly Care those are the four

main ones we see right now they're all

sort of structured environments they're

somewhat control your unstructured

environments like construction defense

Disaster

Response they're all going to be coming

later the reality is that there it's

very complicated every job site is

different every construction site's

different and war is obviously

especially complex so don't expect

humanoids there for many many decades in

terms of a timeline real quick too we're

looking at probably would say companies

are staying roughly three to five years

to start seeing useful cases within

industry and 10 years before really

starts taking

off on the next slide we'll see that

Automotive manufacturing is really one

of the Prime opportunities this is from

a recent value chain report and

Industrial humanoid robots were one of

the key areas in this space on the next

slide we'll also see that a lot of the

automakers and Automotive suppliers are

increasingly aggressive BMW has a pilot

with figure Mercedes with aonic Hyundai

they own Boston Dynamics and then Magna

International which is a automotive

supplier as a pilot with Sanctuary Ai

and then we'll sort of finish here with

Tesla Tesla is very unique they are

automaker but they're more so like a

tech company at least that's how they're

really trying to transition themselves

on their this is from earnings insights

would summarizes earnings call on the

platform and on their Q4 earnings call

last year they said that they want to

position themselves at Ai and Robotics

company and that they view humanoid

robots as key to the company's future

they are going all in on this and Elon

Musk has been quoted as saying that he

expects billions of these to be in the

market I really don't see that as

unreasonable when you think of the

quantity of job opportunities but if

it's not that it's definitely potential

for tens and hundreds of millions in

decades to come so to finalize here s

for our signals for Point number one

generative AI is the enabling technology

helping humanoids learn and interact

with their environment number two big

Tech wants in on humanoid robots and

they are aggressively setting the

foundation they're investing heavily

here and they're also doing a lot in

terms of software models and number

three humanoids will take over many

Industries and who knows maybe even one

day they'll enter the home we expect

sort of Rapid adoption like think of the

automobile after World War I the car no

one really had it in 1918 but then 10

years later almost everyone had a car

it's potential it's it's possible that

humanoids will have that same type of

curve there's going to be a bit more

that has to come out but do expect that

really the end of the decade we're going

to start seeing a lot of movement here

so with that said just want to give a

quick highlight this is our personal

briefing we highlighted it here

definitely check it out it's tailor just

to you and most importantly of all it's

not just that Anan loves you but we all

love you everyone here at CB insights

and thank you so much for taking the

time to listen

today um we have a couple minutes left

here so for to Q&A we had a pres

submitted question um on the cyber

security latest trends and Kenya you can

take that yeah so generative AI security

that's one of the top trends when we

analyzed the early stage activity that

took place in 2023 um that was the top

market with the most early stage

activity um I would say anything related

to Identity so that also ties into

generative AI um just as you have more

deep fakes and things like that um

identity fraud and then any industry

that relies kind of on biometric

identity so thinking Financial Services

a lot call centers will need solutions

to detect deep fakes um and then finally

data security so that was another early

stage Market that saw a lot of activity

um again that's tied to generative AI um

the value of your data has gone up now

that you know it's used to build these

valuable models but also there's just a

ton of high-profile data breaches so um

that continues to be

relevant and we also have another pres

submitted one we'll get to then we'll

start answering some in the Q&A so this

one for Chris how will technology dress

which impact climate

change yeah so I'll answer this in the

context of uh definitely what I

presented but because it's a pretty big

universe you can include everything from

carbon capture technology to renewable

energy to Green buildings and so on so

really three points here for climate and

weather insure Tech the first one's a

data layer as I mentioned the data used

by these companies power Financial

products like insurance but they also

provide data to broader environments for

weather and climate change so we think

about how that data can be analyzed with

Advanced analytics and data science well

if a model indicates a region is going

to be increasingly more susceptible to

wildfires or floods then there's going

that's really going to catch everyone's

attention and it's not just going to be

an insurance application it's going to

be building government so on and so

forth every sector of the region that's

impacted and then the third is with the

loss control and the risk engineering

element I mentioned so an insurance

company May encourage their policy

holders to take preventative measures to

you know manage the climate risks but

those preventative measures are also a

broader of broader benefit to the policy

holders overall and to other

stakeholders involved so those are

really the three ways that I think about

it and when you think about the impact

of this technology on climate change

it's really at most or it's really more

so about being able to make better

decisions related to the risks posed by

weather extreme weather and climate

change which insurance companies do

exceptionally well but that's really

invol entails everyone involved so uh

we're right at time here but have couple

questions that came in so just try to

answer them real quickly um one is like

what industries would attract humanoids

most in fiveyear time frame uh look like

manufacturing inter Logistics within a

warehouse itself they're going to be the

two main ones that's where we're seeing

the most testing going on we actually

have a report on that on the platform so

definitely check it out um and there's

another question here how do you

position boss Dynamics which Industries

are the most

successful um right now their really

first Pilots are going to be with

Hyundai in the automotive factories so

that's where we're looking to see at

first they're trying to figure out use

cases but it's it's hard to say but

right now from Mobility they look like

by far the best when it comes to AI

capabilities which it's still uncertain

but they do look like they're definitely

uh at least one of the Front Runners as

well um with that said we're we're at

time and thank you all for listening we

hope you have a fantastic rest of the

day