Startups Develop Tools to Detect AI-Generated Fakes

A growing number of startups are developing technology to detect AI-generated falsifications. CB Insights analysis reveals that over 40 venture-backed companies are competing in a market aimed at exposing AI-created deceptions, such as fabricated journalistic personas, voices, and images.

The companies in this sector have attracted substantial investment. Since January 2025, these firms have collectively raised approximately $125 million across 26 deals. In particular, companies focused on fraud detection and identity verification, which identify deepfakes and synthetic identities, have secured a significant portion of this funding, totaling $74 million. For instance, Incode, which offers identity verification and deepfake detection, raised the largest single funding round at $37 million.

Major financial institutions, including Equifax and Experian, are leveraging these technologies to verify customer identities and combat fraud. Banks such as Capital One and BNY have also invested in companies specializing in deepfake detection. New founders are also pursuing solutions for fraud prevention, with many directing their services towards banks and insurance companies.

The industry's evolution indicates that AI detection is increasingly being integrated into existing software products. Companies like Substack, Zoom, and FICO have incorporated detection capabilities into their offerings through partnerships or direct integrations. This trend suggests that combating AI-driven deception is becoming a critical component of digital service security.

CB Insights anticipates continued growth in this sector and an increase in corporate acquisitions. Large corporations, such as Equifax, are actively seeking new solutions for fraud and identity management. Smaller startups focused on fraud detection are likely acquisition targets.