Transparent rankings require a transparent methodology

Transparent rankings require a transparent methodology

We have been publishing rankings of AI vendors in specific AI use cases. Our aim is to create transparency around vendor decisions for corporate decision makers. To start off with that, we need a clear, transparent methodology.

First we need a formula to filter vendors and only present leading ones. For the first version of our lists, that formula is Number of current employees on Linkedin+ total funding/$0.5 M. This is a crude formula to prioritize larger companies. Without getting into a size related discussion, I can say that size does mean more resources dedicated to the product and marketing which is correlated with a more usable and capable product. We use 2 metrics:

  • Number of current employees is a good metric for comparing companies offering solutions in the same space. Number of current employees on Linkedin is a good proxy for total number of employees because:
    • It is publicly available
    • Constantly up-to-date
    • AI companies tend to have well educated personnel and Linkedin with its 500 M users has a high penetration especially among well educated white collar workers
  • Not every employee is equal and better paid employees tend to be more accomplished. To take this into account, we added total funding into our equation.

This is our first iteration. We will add more metrics and improve in the next version. However, this still provides you an objective list of the leading vendors in the space so you will know who to contact first. If you have anything to add, please reach out to us via the email in the image containing the list.

We also select top vendors and rising vendors. Top vendors are those with top scores in our formula. However, in case a vendor lacks funding data, we will rank that vendor only based on number of employees. We select 3-10 vendors as top vendors. Out of leading vendors in a use case, we select at most 30% as top vendors. While deciding a cut off point for top vendors, we look at the size (as measured by our formula) difference between 2 vendors. If difference is >20% that’s our cut-off point for top vendors

We still leave some subjective judgement in selecting rising vendors. Essentially, we try to estimate momentum and include new and fast growing vendors.

Hope this clarifies our lists a bit!

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