Artificial intelligence cannot replace companies that possess unique databases
It is no secret that startups established before the widespread adoption of artificial intelligence technologies are currently somewhat overlooked by investors. This was reported by Zamin.uz.
However, Ariel Katz, the founder and CEO of the H1 medical data platform, which has a nine-year history, emphasizes that not all software service companies should be viewed the same. In his opinion, simple services focused on automating workflows can be easily replaced by artificial intelligence.
But for companies that provide fundamental data and possess a unique database, such a risk is much lower. H1's business model is based on providing detailed information about physicians to pharmaceutical companies, hospitals, and insurance organizations.
Katz states that large language models cannot replace them. On the contrary, the global data collected by the company could be so valuable to the creators of AI models that they are more likely to become primary customers rather than competitors.
This ensures the stability of businesses that possess a data source. The CVS Health Ventures venture fund supported this view and led the process of investing forty million dollars into the H1 project.
According to Ariel Katz, the startup was not actually in need of additional funding. The company began making a profit from its core operations last year and plans for more than forty percent growth this year.
However, the opportunity to collaborate with one of the world's largest healthcare companies was a very important strategic step for them. Currently, traditional investors are placing higher valuations on new AI startups.
Therefore, companies with stable financial indicators like H1 may not interest them as much. H1 was last valued at seven hundred and fifty million dollars three years ago, when the technology sector reached its peak of development.
Since then, the company has focused its attention on generating net profit and strengthening its market position by acquiring smaller competitors. This ensures that the company has a strong foundation in the long term.
