Establishing a startup is not easy. Only one out of ten startups succeed. The remaining nine fail within the first year, according to Embroker.
We live in a world where 50 million startups enter new markets every year. That roughly counts as 137,000 startups every day. The figures indicate the current situation of competition in today’s business landscape. There is very little space for newcomers to compete with established giants.
However, things are changing fast.
Young entrepreneurs are coming up with new and innovative ideas to bring down this high startup failure rate. One key area being focused at the moment is artificial intelligence (AI). Experts believe AI can help startups stand out and win their clients’ trust.
So, how can entrepreneurs leverage AI to grow their businesses and achieve their desired objectives? Explore five innovative ways for startup growth recommended by tech experts.
Let’s dive in!
Growth of AI in 2024
AI has shown a remarkable growth in recent years. The global AI industry is predicted to reach $305.9 billion by the end of 2024 and $826.70 by 2030.
What does the AI growth mean to startups?
AI can be a game-changer for startups across the globe. It empowers businesses in many ways, from optimizing operations to reaching potential leads and driving more conversions. Entrepreneurs can use AI tools to gain valuable insights into consumer behavior and build growth-driven strategies accordingly.
The data-driven approach backed by powerful AI systems transforms decision-making. Companies can automate repetitive processes and focus on core tasks related to business growth.
We’ll discuss these benefits in detail in the next section.
5 Ways Startups Can Leverage AI for Rapid Growth
Below are five innovative ways to use AI to grow businesses and achieve corporate goals.
1. Understand Target Audience
One biggest change observed in clients’ behavior recently is that they value brands’ understanding of their target audience. Customers want startups to align their products or services with user preferences.
Here comes a question. How can brands identify their consumers’ needs and understand individual preferences? The answer is simple: artificial intelligence.
AI tools allow businesses to collect data about potential leads. Companies can leverage AI-powered predictive analysis to understand consumer behaviors and make accurate predictions. The findings can later be used to build client-focused strategies to achieve rapid growth.
Several startups have been successfully implementing this strategy to generate high revenues.
2. Personalization
The next step after understanding the audience’s behavior is developing products that match consumers’ interests. Let’s understand this statement with an example
Suppose you have developed an educational SaaS app for schools. The cloud-based solution helps teachers prepare their lectures through videos, infographics, and educational material. However, each teacher has a different approach when it comes to learning from digital resources. Some teachers prefer videos, while some want articles.
With AI, the SaaS application collects data about the professional interests of all teachers. The data is helpful to suggest material according to the preferences of each teacher separately.
Hence, AI improves the usability of cloud software and delivers personalized experiences to users.
3. Make Smart Marketing Decisions
Marketing has been the backbone of startup growth for years. AI has taken organizational marketing efforts to the next level. Modern advertising strategies are more focused on audiences and deliver remarkable results. Thanks to AI tools for making it possible.
Take the example of Google Ads. Marketers can use the AI-powered performance max campaigns to reach potential customers with more accuracy. The campaign leverages AI to target audiences based on their interests and preferences.
For instance, if you are running a performance max campaign for a restaurant, Google Ads would show your creatives to food lovers. Similarly, a real-estate campaign would focus more on individuals who are interested in buying, selling, or renting properties. The whole process is handled by AI, from finalizing bid strategies to driving more conversions.
AI has been at the forefront of leading marketing platforms including Facebook, Instagram, and TikTok. Startups can expand their digital footprint by harnessing the power of AI in marketing.
4. Increase Team Productivity
Productivity is one of the biggest challenges startups face in their early years. Some lack resources, and others don’t have access to the required skills and expertise.
AI has solved this problem too. Many AI tools are available that can automate less critical tasks and make employees more productive and efficient. For example, content creation by AI chatbots like ChatGPT and Gemini can be used to write emails, blogs, marketing copies, and similar content in minutes. Just describe your content requirements in a prompt and get high-quality results in a few seconds.
Moreover, AI chatbots are also used to automate customer support. They allow startups to improve their response time and handle multiple client requests simultaneously.
Hence, instead of hiring admin staff or customer support agents, companies can use AI-powered tools to automate repetitive tasks. Besides, entrepreneurs can spend their time and energy to find growth opportunities and achieve their desired objectives.
5. Improve Data Security
Data privacy is a major concern for businesses of all sizes, including startups. Protecting confidential data and client’s personal information is crucial. No company can survive in today’s digital era unless it complies with data regulations like GDPR.
Artificial intelligence makes data protection a lot easier and more seamless. AI tools leverage robust security protocols to identify and respond to data breach attempts.
Even if someone succeeds in breaking the outer firewall, AI can alert respective staff about possible data breaches so that timely action can avert loss. Eventually, small businesses can operate with confidence without compromising their data privacy.
Final Thoughts
Artificial intelligence (AI) is a game-changing technology of the 21st century. It enables businesses to become more productive and stay ahead of the curve.
Startup owners often face the risk of failure in the early days. The risk, however, can be minimized by implementing cutting-edge solutions powered by AI. These tools facilitate stakeholders in decision-making and provide them with innovative options for growth.
Startups can use AI to understand their audience’s interests and personalize products or services accordingly. Similarly, they can leverage AI to make smart marketing decisions, increase team productivity, and improve data security.