In the ever-changing digital business landscape, having a unique business idea is not just enough for startups.

According to a PwC report, the application of AI will result in a 14% boost in global GDP by 2030, with startups playing a magnificent role in this expansion.

Artificial Intelligence (AI) enables new-age startups to operate intelligently and efficiently and scale exponentially.

Owing to the potential of AI, startups are deciding to extrapolate it to scale their business.

For example, Stitch Fix, an online tailored styling subscription service, uses AI to present customers with personalized recommendations. 

The brand automates employee data collection and routine procedures to increase efficiency, makes complex requests easier to fulfill, and helps it focus more on communicating with consumers, allowing them to manage resources and maximize earnings.

Let's look at how AI can help new-age startups gain a competitive advantage and become more agile.

1. Startups can Use AI to Enhance Customer Experience

It's no secret how beneficial a pleasant customer experience is to a business's bottom line.

According to studies, customers with a better customer experience are 200%more likely to interact with a brand. 

According to an American Express survey, more than 40% of customers want businesses to prioritize speedy customer service.

AI can meet both of these requirements while also assisting businesses in providing a better customer experience.

Startups that deliver a speedy and improved customer experience have a better chance of gaining a competitive advantage and scaling.

AI-powered chatbots offer personalized customer experience, and startups can use these chatbots to:

  • Mine data to generate leads and increase sales
  • Determine customer issues
  • Identify customer preferences
  • Provide real-time solutions

Chatbots are essentially automation disguised as human conversation. They replicate human interaction. When a customer interacts with a chatbot, the bot translates the user's question to all available answers and responds accordingly.

Startups can use chatbots in their sales funnel to upsell their products and improve conversion rates.

In the eastern city of Hangzhou, KFC deployed the 'Smile to Pay' face recognition payment system to make its customers' lives easier. Customers do not have to wait in long lines to place their orders. They may order meals and pay for them using facial recognition technology.

2. Startups can Use AI To Make Smart Business Decisions

Artificial intelligence can help startups make data-driven decisions, which will help them develop faster.

According to McKinsey, about 70% of organizations will be utilizing at least one form of AI technology by 2030, with roughly half of all large enterprises having a full range of AI technology incorporated in their processes.

Innovative AI-powered tools deliver precise and real-time insights into customer needs. With this information, startups can improve their products and services to meet client expectations.

These intelligent solutions are necessary for a startup to grow, scale, and stay competitive.

AI-powered data can help startup owners accurately assess business performance and client demands, and make informed decisions.

AI data insights and business analytics are simple to comprehend, and entrepreneurs don't require a data scientist to use an AI tool's data.

Burberry, a global luxury brand, employs big data and artificial intelligence to combat counterfeit goods and boost sales and customer relations. The company's sales strategy fosters deep, personal relationships with its customers. 

The brand aimed to cater to in-store purchasing as innovative as online shopping.

For this, they have incentive and loyalty programs, which provide data to help them customize the shopping experience for each customer.

3. Startups can Automate & Transform Their Marketing Endeavors

Artificial intelligence (AI) revolutionizes marketing for startups, where they can use AI for content creation, email marketing, and digital campaigns, among other things.

Entrepreneurs can use AI tools to create and optimize content for their target audiences. Tools like MarketMuse, for example, allow marketers to compare their content to the best-performing material and make recommendations.

To reach a broader audience and leverage their marketing, startups can use AI to manage their digital ad campaigns. 

Albert AI is a marketers ally that handles all the aspects of digital marketing, audience segment creation, media buying, multi-channel marketing, optimization, testing, and analysis.

Startups can even utilize AI to improve the response rate of their email marketing efforts. They can customize communications and promotions to their target demographic, resulting in a higher conversion rate and a more successful campaign.

4. Startups Can Level Up Talent Acquisition With AI

A startup's ability to attract and retain employees is vital to its success. AI can automate and streamline the hiring process.

Individually screening profiles from a pool of candidates by hand can be a time-consuming, inefficient operation. AI makes HR managers' jobs easier by removing irrelevant candidate profiles to find the best candidate.

People managers can utilize AI technologies like PredictiveHire to quickly assess bulk applications and narrow down the pool of qualified candidates.

5. Startups Can Safeguard Their Data With AI

Startups are vulnerable to cyberattacks due to weak cybersecurity systems. For this, startups need to strengthen advanced AI and robust cybersecurity to stay immune to malicious attacks.

After a cyber-attack, it takes 196 days for a startup to recover. According to a report released on the Norton website, the cost of recovering from a data breach is around $3.86 million.

To this end, startups need to shed their old ways of threat detection methods and embrace AI.

AI can detect suspicious actions on the website and send alerts.

A  Google search update in 2016 blacklisted 20,000 malware-infected websites and 50,000 phishing websites every week. Startups can utilize advanced artificial intelligence (AI) tools to detect suspicious behavior and protect their data from cyber-attacks.


Startups can reach zenith success by deploying problem-solving chatbots and business analytics to make data-driven decisions, enhance marketing endeavors, efficient screening of applicants, and secure critical business data.