Investors who once rushed into any startup that mentioned artificial intelligence are now scrutinizing claims more closely. The practice of exaggerating AI capabilities—known as AI‑washing—is prompting venture capitalists to seek concrete proof of product performance and market fit. Companies that demonstrate real value, especially in tightly regulated sectors, are attracting capital despite a broader slowdown in AI‑driven funding. Gradient Labs, a customer‑service platform built for regulated industries, illustrates how focused product development and strong investor relationships can secure a successful Series A round without relying on hype.
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