In recent years, a number of high-profile AI startups—backed by leading AI investors—have faced significant setbacks, with some incurring losses in the hundreds of millions of dollars even after promising early traction and ambitious valuations.
These developments serve as a cautionary signal to the global AI investment community: in a landscape defined by rapid innovation and media-fueled excitement, conventional due diligence practices are no longer sufficient. The AI sector, in particular, has become increasingly vulnerable to hype, with some startups overstating their technological capabilities—often relying on hundreds of human coders behind the scenes while promoting their solutions as fully autonomous AI systems.
As the old adage goes, “Anyone can sell snake oil, but not everyone is selling the real deal.” Distinguishing genuine innovation from inflated claims is more critical than ever for investors seeking sustainable, long-term value in the AI space.
The recent rise and fall of prominent startups underscores the necessity of a more disciplined, forward-looking approach—one that transitions from reactive to proactive AI investing.
Outlined below are three forward-looking strategies designed to help investors engage more effectively with the opportunities and challenges shaping the evolving AI landscape.
Strategy #1: Mitigating FOMO with Parallel Investment in Third-Party AI Expertise
Strategy #2: Establish a Dedicated Syndicate Investor Communication Channel
Strategy #3: Prioritize Technical Transparency and Engage Directly with AI Engineers
Read the full Forbes feature here:
About the Author:
Sahar Hashmi, MD-PhD —former Harvard faculty, MD/PhD, and CEO of Magna GenAI Consulting.
AI-Savvy Doctor | Multiple Award Winning AI Expert Advisor | AI Transformation Leader
Contact: +1 (617) 580-6760 (WhatsApp available)
Dr. Hashmi works across the healthcare ecosystem and business ventures, defining AI strategy, conducting due diligence, and selecting and implementing impactful AI innovations.
Dr. Hashmi’s focus areas include:
Startups & VCs — Evaluating AI ventures in industries like healthcare, banking, education, and sports.
Design AI Centers of Excellence: Designing and implementing scalable, cross-functional AI hubs to drive research, innovation, real-world AI applications.
Hospitals & Clinics — Integrating AI into EMR systems and workflows for better care.
Pharma Companies — Leveraging AI for clinical trials, drug discovery, and repurposing.
Payers & Insurers — Using AI to optimize claims, assess risk, and detect fraud.
Patients — Building trust in AI through ethical, transparent design.
Not just hype. Not just talk.
Real ROI. Real measurable outcomes. Real AI transformation.
Forbes TEDx Speaker
Multiple Awards-Winning Founder & CEO
Trained 100+ C-level execs on AI readiness
Global events speaker
: HIMSS New England Conference, Global GenAI Insights Summit in Boston, AI Summit in Japan, Intelligent Health in Switzerland
