How Can Startups Grow and Scale Using Artificial Intelligence in 2023? Our 3 Recommendations
Big Tech has had a rough year. The FANG+ stock market index, which follows the top ten technology companies, has down more than 40% this year. Meta, long the darling of Silicon Valley, has seen its price collapse by more than 70%.
One explanation for the fall is that these firms are being hammered by a perfect storm of antitrust restrictions, data privacy concerns, and regulatory scrutiny, all while operating in an unpredictable macroeconomic climate. While major tech investors are discounting risk and anticipating weaker growth in the future, entrepreneurs can achieve quicker growth by filling the holes left by incumbents - this creates a great opportunity for startups, especially in the space of Artificial Intelligence (AI).
Until recently, the most advanced AI solutions were exclusively available to large, well-funded enterprises. That is no longer the case. As AI has become more ubiquitous, it has flowed down into a plethora of goods and services available to startups and small businesses, and it may be a game-changer for those that take advantage of it.
Here are 3 areas that startups can use AI to capture the market to grow and scale.
1. AI can produce valuable market intelligence, which can lead to sustained competitive advantage.
In any competitive market, startups must compete for market share with both long-established rivals and newcomers. As a result, it's vital to monitor rivals to understand where possibilities exist.
Crayon, for example, can collect hundreds of data sources in order to deliver real-time insights regarding rivals' movements. If competitors drop the price of a product, launch a new marketing campaign, or if someone posts a nasty internet review, it will track it down and report on it. According an expert in the filed, "The world changes at a speed that's hard to fathom, so decision-making needs to be adjusted based on insights coming from data, accompanied by recommended actions. 'Survival of the fastest' is the rule today."
2. AI allows product-centric expansion for better customer experience.
Amazon pioneered this technique with its product suggestions, but startups can now utilize AI to deliver a totally tailored experience for their consumers, from personalized messages and search results to content recommendations and targeted marketing.
Startups such as Monos.com use artificial intelligence (AI) via product lifecycle management software to bring novel goods to market. Startups in the fashion sector, such as Stitch Fix and Mode.ai, employ machine learning (ML) to offer clothing to clients based on their previous purchase history and preferences.
This method necessitates a data-driven attitude. Startups must be able to acquire, clean, and analyze data in order to train AI models. As Big Tech is under pressure to innovate, startups utilizing AI have a real possibility to leapfrog them.
3. AI can help startups automate and scale, allowing for sustained profitability.
AI can help startups automate and grow their operations. This is especially critical for high-growth firms that need to scale their operations fast. A few AI based tools that can help automate, personalize and scale.
Chatbots: According to a report published by American Express, more than 40 percent of consumers want companies to focus on providing quick customer service. Using Machine Learning, Natural Language Processing (NLP), and Natural Language Understanding (NLU), AI chatbots may learn how to reply more naturally, correctly, and effectively, saving you time and money.
Emails: Emails are one of the most critical tools for any business, and how you utilize them may be the difference between a successful and a failing outreach effort. You can now customise your emails using AI depending on how the recipient opens and responds to different messages. This is accomplished through the use of a learning algorithm that improves its analysis with each contact.
Hiring & Talent Retention: A survey found that more than half of talent acquisition leaders believe that finding the right candidate from a large pool of applicants is one of the most difficult aspects of recruitment. Startups can use AI to conduct automated screening to weed out applicants who are unsuitable for the role.
To close, AI itself is maturing, but it's becoming more accessible to startups and small businesses. This also means that startups and small businesses need to leverage these tools or become obsolete - possibly at a faster pace than ever before.
At MD-Konsult.com, we both leverage AI and guide our clients on how to leverage latest technology to increase margins, scale and sustain a profitable business. Ask us how!
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