Business Combination and Corporate Changes - The company completed a business combination with Brand Engagement Network Inc. on March 14, 2024, and changed its name to Brand Engagement Network Inc. after migrating to a Delaware corporation[14]. Revenue and Market Potential - The company generated minimal revenues in 2022, primarily from beta testing discontinued products, but obtained its first customer in the healthcare industry in November 2023[17]. - The total addressable market for the company's AI assistants is estimated to exceed $10 billion and is projected to grow to $30 billion by 2030[26]. - Future expansion plans include increasing use cases in the healthcare market and entering new markets such as financial services[25]. - The company plans to expand its offerings into retail, hospitality, enterprise, and contact centers, targeting a total addressable market of approximately $30 billion by 2028[46]. AI Assistant Development and Features - The company aims to enhance customer engagement through customizable AI assistants that integrate with clients' real-time data systems while ensuring compliance with privacy laws[17]. - The AI assistants are designed to operate in various environments, including cloud, localized, and hybrid settings, providing seamless integration for businesses[16]. - The company has recently piloted use cases for its AI assistants in the automotive sector, including dealership reporting and service assistance[23]. - The company has acquired DM Lab Co., LTD. to develop its first AI assistant prototype, marking a strategic move in its product development[15]. - The AI assistants can be deployed within a few days, significantly reducing the traditional deployment time associated with AI systems[22]. - The company focuses on configurable safety and security features to ensure unbiased training and protect proprietary data[20]. AI Adoption Trends - 47% of advanced industries have utilized AI capabilities, with one-third of organizations regularly using generative AI in at least one function[27]. - 60% of organizations that reported AI adoption are using generative AI, and 94% of large companies plan to integrate voice AI within the next two years[27]. Data-Driven Organizations - Data-driven organizations are 23 times more likely to acquire customers, six times more likely to retain customers, and 19 times more likely to be profitable[31]. - Organizations using big data experienced an 8% increase in profit and a 10% reduction in costs[31]. Industry Insights - By 2030, over 29 billion IoT-connected devices are expected globally, and by 2025, more than 95% of new digital workloads will be deployed on cloud-native platforms[32]. - 25% of all U.S. healthcare expenditure is wasted on administrative complexity, with 42% of physicians experiencing burnout[42]. - The automotive industry comprises over 450,000 organizations globally, with 95% of used-car searches initiated online[43]. - The financial services sector includes over 227,000 organizations, with 54% of insurance companies not having upgraded their legacy systems[44]. Intellectual Property and Compliance - As of December 31, 2023, the company had 21 issued patents, including 10 U.S. patents and 11 issued abroad, with expiration dates ranging from September 9, 2028, to April 18, 2031[53]. - The company has 19 pending patent applications, which, if issued, would expire between 2041 and 2043[53]. - The company employs internal and external controls to protect proprietary technology and confidential information, including agreements with employees and contractors[54]. - The regulatory environment for artificial intelligence is rapidly evolving, with potential compliance costs expected to increase due to new regulations[55]. - The company must comply with various privacy laws, including HIPAA, which establishes standards for the use and disclosure of protected health information[56]. Operational Overview - As of December 31, 2023, the company had 26 full-time employees and 12 independent contractors[62]. - The company does not maintain any material properties, indicating a focus on operational efficiency[62]. - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[64]. - Management does not anticipate that recently issued accounting standards will have a material effect on consolidated financial statements[265].
Brand Engagement Network Inc.(BNAI) - 2023 Q4 - Annual Report