Many companies are presenting themselves as AI companies without the technology to back it up. While basic data analysis and pre-programmed rule-based decisions are a facet of automation, the difference is that AI systems are iterative—they get smarter and more autonomous with the data they analyze. Questions to ask before investing in a company claiming AI: are they doing more than basic data analysis? Are they using data to create systems that enable machine learning? Is the technology iterative and reducing the need for humans in the loop?