Dmitrii Khasanov is an angel investor, digital marketing expert and founder of Arrow Stars.
As an investor who has been working in the market for years, I’ve witnessed the full cycle of AI’s rise and evolution as a modern business solution. What started as a niche field of startups—where passionate innovators experimented with machine learning, computer vision and natural language processing—quickly showed immense potential.
Even in those early days, it was clear that as these technologies advanced, they would become a magnet for investment and influence, not just in specific industries but also the global economy as a whole. Now, with AI integrated into nearly every aspect of life, I see just how accurate those early predictions were.
I’ve invested in a variety of projects, from analytics platforms for retail to AI-powered call center solutions. Back in the day, AI was seen as more of an experiment, but within a few years, these “experiments” evolved into powerful products that are now essential to the modern market.
However, technological progress is rarely linear. As AI gained momentum, it started to feel like no marketing campaign could exist without it. Suddenly, we saw an explosion of AI-driven solutions promising to change everything—from virtual interior design to garden care. Some of these were genuinely innovative, but many were pure marketing hype, designed to generate buzz and attract capital from investors afraid of missing out on the “next big thing.”
The AI Hype Cycle And Reality Check
On one hand, I believe the widespread obsession with AI has diluted the meaning of “artificial intelligence.” People have started questioning whether all the buzz has actually led to groundbreaking solutions or if it’s just another overhyped trend.
On the other hand, despite the inevitable disappointment in some projects, real progress in AI-driven algorithms is undeniable. After years in this field, I see that we’ve reached a turning point. AI is no longer just a tool for corporate efficiency or personal convenience. It has captured the attention of financial institutions and government regulators, signaling its deep integration into the economic and policy landscape.
To grasp the scale of these changes, just look at how the investment world has evolved. Five or 10 years ago, we were searching for teams that could train neural networks to solve niche, highly specialized tasks. At the time, it felt like a breakthrough poised to disrupt the market.
Today, however, investment funds assess AI projects not just based on the presence of “machine learning” in their pitch decks but also on how meaningfully and effectively these algorithms are applied. We’ve learned the importance of distinguishing between companies where AI genuinely solves real-world problems and those that simply slap “AI-powered” onto their branding for marketing appeal.
Global Transformation
I believe this rising demand for higher-quality AI systems is part of a much broader transformation happening in global finance. The key shift is that AI is not just a commercial tool; it has become an integral part of government and international policy.
For example, central banks are implementing AI-driven platforms to analyze vast amounts of transaction data, allowing them to detect fraud and combat money laundering more efficiently. Previously, these issues were handled through slow bureaucratic processes. For investors backing these technologies, this translates into a growing market for high-tech financial security solutions.
Another major development is the rise of digital platforms that enable banks and financial institutions to assess credit risks faster and more accurately. Even venture capital firms can use AI to help assess potential investments. Not long ago, evaluating whether a project was worth investing in could take weeks. Today, many funds and banks leverage machine learning algorithms to help analyze creditworthiness and business potential in a matter of days—or even hours. Now, they can rapidly filter through dozens of potential deals and focus only on those with real promise.
Where To Grow?
Many still see AI as a kind of “magic box” where raw, chaotic data goes in and flawless solutions come out. But within the professional community, it’s becoming increasingly clear that the effectiveness of these systems depends on data quality, the complexity of the algorithms and deep industry expertise. Investors need to see exactly how AI is integrated into business processes and what tangible benefits it delivers. Simply using the term “AI” isn’t enough. Companies need to build a full-fledged data infrastructure and create meaningful interactions with clients.
This brings us to a logical conclusion: AI is no longer a niche phenomenon; it’s a core component of the global financial system. Companies and governments are launching joint innovation hubs where they develop and pilot scalable AI-driven solutions. As its adoption expands at a national level, it’s influencing regulatory frameworks and even the mechanisms of financial transactions.
For investors, this is a clear signal that the technology market has matured to a systemic level, and investing in AI solutions requires deeper analysis and a more strategic approach. Moving forward, I believe investors need to adopt a more global mindset: Enter public markets, test bold hypotheses and engage in ongoing dialogue with both government and market representatives. Investor strategies should no longer focus solely on the “local” level of their funds or companies but should address a broader audience that includes governments, regulators and other key stakeholders.
From my perspective, the past few years have been a time of both great discoveries and major disappointments. On one hand, we’ve witnessed an explosive wave of technological advancements, each new breakthrough in machine learning opening up new business opportunities. On the other, the market has been flooded with projects full of bold promises but lacking a solid technological foundation.
Still, if we take a step back and look at the bigger picture, AI remains an attractive sector for investment. Its growing role in global financial mechanisms strengthens its long-term potential. However, as investors, we must approach these investments strategically and with an understanding of potential risks. Our job is to recognize the startups and corporations using AI not just as a trendy buzzword, but as a genuine tool for solving real problems and strengthening the global economy.
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