Publications
Publications
- October 2019
- HBS Case Collection
Feeling Machines: Emotion AI at Affectiva
By: Shane Greenstein and John Masko
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; Software; 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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