Future-proofing Startups with the Transformative Power of AI and ML

The rise of Artificial Intelligence (AI) is revolutionising our world and enabling what was once deemed impossible in today's digitally advanced society. AI used to be a subject of science-fiction dystopias, but it is now becoming more common and influential.

AI is transforming our daily lives, from intelligent automation to financial advice through AI assistants and self-driving cars that can park better than humans. Reports suggest that the global AI market will grow from $35 billion to over $521.3 billion by 2028 at a CAGR of 35%. Computing power, software capabilities, and the cloud have seen significant advances over the last few decades, resulting in exponential progress on the AI front. Machine learning (ML) and other forms of narrow AI have now become mainstream.

The world of business is experiencing unprecedented opportunities with the help of AI. Currently, 35% of organisations globally have invested in AI, and 44% plan to invest soon. Interestingly, AI is also gaining popularity in the startup ecosystem, with a 14x increase in AI startups over the past two decades.

Let’s explore how startups can effectively leverage AI and ML to succeed in the future.

The far-reaching applications of AI and ML

India is now the third-largest startup ecosystem in the world and has seen remarkable growth in startups. Although there has been a recent slowdown in funding, startups are investing heavily in AI and ML technologies to explore new opportunities and increase value on a large scale. Conversational interfaces, machine learning-based analytics, and Natural Language Processing (NLP) solutions are now standard in financial services, healthcare, and telecommunications industries. By using AI and ML applications, startups can surpass their competitors, speed up growth, and fill gaps left by established companies.

One way that AI can help startups is by powering product-centric growth. With the current economic climate, where customers are cutting back on discretionary expenses, AI-powered product designs and personalised experiences can assist startups in addressing unmet needs.

Startups also leverage AI and ML in high–impact areas across crucial stages of their lifecycle. Owing to their nimble and agile operating models, smaller sizes, and innovation-focused culture, startups can see faster returns on their AI investments, typically within two years.

Startups can benefit from AI's predictive analytics for financial and revenue projections. This helps entrepreneurs stay on track and guide investor decisions. As Metaverse technologies emerge, businesses that leverage cognitive technology will lead. However, addressing AI's risks and ensuring responsible use for interpretability, fairness, safety, and reliability is crucial.

How startups are unlocking the power of AI and ML

Did you know that 65% of companies now use AI for business analytics and intelligence? Additionally, 63% of businesses are interested in automating repetitive and low-level tasks using AI. As more startups adopt AI and ML algorithms, they are increasingly impacting our daily lives by influencing what we see, purchase, and how we interact with technology.

AI and ML are driving many emerging trends, including big data analytics, cybersecurity, and hyper-automation. They are also helping to create new advancements such as the Artificial Intelligence of Things (AIoT) which combines AI technologies with the Internet of Things.

Here are some of the key ways in which startups are scaling AI and ML technologies to achieve better outcomes:

1.   Data-driven decisions

AI and ML technologies are revolutionising startups by providing actionable insights through the analysis of enormous amounts of data. These technologies enable quick decision-making, which is why FinTech startups are using them to replace lengthy underwriting processes with real-time approvals.

2.   Fraud detection

As startups are increasingly targeted by malicious actors, they can take a proactive approach to fraud detection by utilizing machine learning. Sophisticated machine learning algorithms enable startups to stay up to date with constantly evolving fraud patterns and effectively identify irregularities.

3.   Customer experience

Startups use personalised data to train their AI models and provide quick responses to customers. Through targeted advertisements, content, and product recommendations they can also tap into cross-sell and upsell opportunities.

4.   Financial projections and business forecasts:

By using financial forecasts and revenue projections, entrepreneurs can gain insight into their startup’s journey and determine whether they are meeting their intended goals. Profit and loss projections can also guide internal decision-making and help investors assess the potential for growth.

AI and ML: Driving the future of startups Innovation

The future of startup innovation is being driven by AI and ML. As the startup industry gears up to explore the next generation of Metaverse technologies, businesses that quickly adopt cognitive technologies will have an edge. To address the risks associated with AI and its applications, more proactive measures are needed. Responsible AI will become a new business requirement in the future. Startups must take a definitive approach to ensure that their AI systems are transparent, impartial, secure, and respect users' privacy.

Authored By: Kapil Kapoor, CPO & CTO at CredAble