New Delhi: A recent survey conducted by Meta has found that over 70 percent of Indian startups are currently using artificial intelligence (AI) to perform core business functions. The report speaks volumes about the role of AI in enabling these firms to gain an insight into markets, cut down costs, and enhance customer experiences. It is a major change in the way new businesses are being conducted, particularly in a rapidly expanding digital economy such as that of India.
Alvarez and Marsal India (A&M India) have conducted the study which is rounded on the basics of the 100 high-growth startups around the nation. It presents six significant growth levers that stimulate innovation and scale: AI integration, expansion to tier 2 and 3 markets, cross-border expansion, omnichannel preparation, category penetration and creator-led branding.
Meta states that 87 percent of startups that use AI say that it increased their cost per acquisition by at least 30 percent. Healthcare, edtech, and beauty startups are using AI to automate, predict, personalise and deliver efficient customer services. The tools are useful in the optimisation of user experiences and simplification of operations.
Most of the startups are currently turning to tier 2 and 3 cities. In the report, it is mentioned that although product-based startups were in the lead, service-orientated ones are catching up rapidly. There is growing demand and a new consumer base in these areas that encourage startups to explore the local opportunities.
Two out of every three startups have adopted omnichannel strategies to monitor the customer experience between channels. The online advertisement, WhatsApp, or influencer Reels are the most common starting points of consumer journeys and can be followed by the physical retail, particularly in the fitness, fashion, and home-decor industries.
The demand to scale has seen 52 percent of start-ups researching global expansion. Moreover, 84 percent are pushing beyond their product lines. Such companies are utilising such tools as social listening and keyword analysis to determine new trends and open new revenue sources.
