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  • October 2019
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Feeling Machines: Emotion AI at Affectiva

By: Shane Greenstein and John Masko
  • Format:Print
  • | Language:English
  • | Pages:20
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Abstract

In 2016, Affectiva—a Boston-based emotion AI software company with a long track record of building emotion-sensing software for market research—had attempted to expand into new verticals by releasing a mobile software development kit (SDK) that downloaders could adapt for their own use cases. The experience taught Affectiva that the company itself would have to bear most of the financial risk for adapting its technologies but also demonstrated that the automotive industry was very interested in using Affectiva’s technology to monitor the emotions and cognitive states of drivers and passengers. In 2018, Affectiva executed a “90% pivot” to serve the automotive industry’s increasing demand for “emotion AI”. However, with automotive revenues not expected for several years and very expensive data collection requirements to enter the industry, Affectiva faced a challenging set of trade-offs between its market research business, its SDK, and its automotive aspirations.

Keywords

Artificial Intelligence; Market Research; Business Model; Finance; Revenue; Decision Making; Risk and Uncertainty; Market Entry and Exit; Applications and Software; AI and Machine Learning; Information Technology Industry; Auto Industry; United States

Citation

Greenstein, Shane, and John Masko. "Feeling Machines: Emotion AI at Affectiva." Harvard Business School Case 620-058, October 2019.
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About The Author

Shane M. Greenstein

Technology and Operations Management
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