Problem of Assessing the Investment Attractiveness of Risk Projects for Developing Artificial Intelligence

Abstract

The article discusses the problem of assessing the investment attractiveness of risk projects for developing artificial intelligence, the methods of such assessment and their features. It is shown that due to the lack of relevant statistical, financial, operational information, the models and methods of investment valuation are, for the most part, subjective. The use of only one model or method of assessing investment attractiveness in the field of the development of artificial intelligence projects is insufficient, while the complex use without taking into account systemic aspects is likewise not sufficiently substantiated. To solve the existing problem, it is proposed to comprehensively use the available capabilities of the method of functional cost analysis (FSA), the essence of which is that the development project is decomposed into separate functions, and the necessary resources are measured and fixed for each function. Analysis of the functions of the object and the costs of the implementation of the functions makes it possible to identify the most acceptable variant of the object from the position of its functional content. At the same time, the article considers the possibility of using the functional-cost analysis method in the evaluation, the essence of which is that the development project is decomposed into separate functions, and for each function, all necessary resources are measured and fixed. An analysis of the object’s functions and their costs will help to identify the most economical version of a risky investment project from its functional content. It is reasonably noted that the main resources to support and promote the development of innovative projects are venture companies that invest considerable funds both at the initial stages and at the stages of development and expansion of projects. The amount of financial resources coming from business angels, crowdfunding and business accelerators is much smaller and goes mainly to the initial stages of project implementation.

The Innovative Basis of the Growing Small and Medium-sized Businesses

“…The organisation attracts external financing; loans are paid for at the expense of current profits, while new projects do not yet provide cash receipts. Sometimes the primary resources to support the development of innovative projects are venture capital companies that invest a lot of money both at the initial stages and at the stages of development and expansion of projects [17].…”

Multiplicative Methodology for Assessing Investment Attractiveness and Risk for Industries

“…Methodological aspects of investment attractiveness and features of risk research are presented in the works of such scientists as (Groh 2007;Raszkowski 2013;Demirhan and Masca 2008;Vertakova and Plotnikov 2016;Reshetnikova et al 2019;Al-Abdulla 1989;Pershin 2020;Petryk et al 2020;Ilyash et al 2020;Chebotareva 2018;Dang and Samaniego 2022;Zhao and Levary 2002;Ilchenko and Glushko 2017;Blank 2019;Vertakova et al 2015 and others). However, these papers do not show the features of using the multiplicative methodology in assessing investment attractiveness and risk for individual industries.…”