Regardless of the business climate, startups and entrepreneurs face many challenges. They usually have limited resources with which to invest in their business, must work excessive hours simply to make their business operational, and, given that venture capital funding has been difficult to acquire lately, hiring extra staff to help may not be an option. At the same time, many entrepreneurs lack technical expertise in certain areas, which requires seeking out professionals. This, too, can be costly and handicap growth and progress for a startup in its early years. However, a number of startups using generative AI are finding ways to reduce common challenges. Levering this as a support tool, entrepreneurs are increasing business innovation with AI and launching faster.
(Bold forecasted the troubles startups were going to face in raising capital–read about it here.)
There’s no question that using generative AI in general is relatively new when it comes to the business world. While many believe generative AI is a game changer and will invite exponential levels of innovation, it’s too early to tell. But one thing is evident based on business surveys. Among all businesses, startups using generative AI is more common than not. Not only are such companies increasing business innovation with AI, but they are finding ways to accelerate their efforts. This certainly has tremendous implications for individual entrepreneurs and startups. However, it also has big picture impacts as well involving larger national economic effects. By providing entrepreneurs a timely advantage, many startups using generative AI are better competing. In other words, AI is not just helping major corporations but smaller firms as well.
“[Generative AI] kind of gives you stilts to get through an obstacle, to get through a minefield.” – Steven Bright, Startup Founder of Skittenz
AI Supporting the Launch
Some statistics about startups and new businesses are commonly publicized noting that roughly half fail. Despite many entrepreneurs having solid ideas for a new business, the previous challenges described limit their success. Prior to startups using generative AI, an entrepreneur had to research business ideas and their related markets. Likewise, legal, accounting, and payroll issues had to be addressed before the business could actually launch. And of course, developing business plans and securing funding for the launch was essential. It’s thus not surprising that many small businesses lack durability, and some never even make it off the ground. This is where generative AI is helping, however. Entrepreneurs are getting help with these tasks while also increasing business innovation with AI. Generative AI is therefore making startup launches easier.
For small businesses involved in application development, entrepreneurs are increasing business innovation with AI by accessing assistance to coding. Generative AI can provide assistance with intricate codes in particular that may otherwise take much longer to develop. Startups using generative AI are also saving time and money with legal and contract matters. AI can provide summaries of complex documents that makes it easier to understand. Instead of having to consult with an attorney and an accountant, AI offers an answer more concise and less costly. Plus, the entire process of business development, including business planning, is expedited. Given this, many startups using generative AI are launching faster and more successfully.
“I feel like I can ask the stupid questions of the [AI] chat tool without being embarrassed.” – Jamie Steven, Entrepreneur
Improving Startup Operations
Once launched, the challenges for startups continue. However, difficulties tend to be more growth-related and operational in nature. Time management is crucial because human resources are generally limited in nature. This not only makes things like marketing and hiring more cumbersome, but it also can affect routine processes. In an effort to improve efficiencies, startups using generative AI are leveraging these new capacities. For example, job postings can be more quickly created with ChatGPT and other AI platforms. Likewise, social media posts can be developed faster and more professionally using AI tools. This saves time and human resource requirements, which saves costs. By increasing business innovation with AI in daily operations, startups are finding they are better able to compete.
(Can AI be the boost small businesses need? Read how they could in this Bold story.)
Notably, there are many different ways that startups using generative AI are enhancing operations. This varies from one entrepreneur to the next based on their company’s needs and their level of comfort. But it’s evident that small firms and younger ones are using AI more commonly that more tenured and larger ones. By increasing business innovation with AI in departments like marketing, payroll, and human resources, startups are thriving. Not only are they scaling more quickly, but they are also conserving resources in some areas that can be invested elsewhere. This facilitates growth at a faster pace, which provides competitive advantages. Whether this will also equate to profitability and success in a market remains to be seen. But startups using generative AI wouldn’t reverse course based on the operational benefits they’re seeing.
“[Students developing businesses using AI] felt to me like what I felt like in the mid-2000s, when cloud and mobile happened at the same time. Generative A.I. could similarly change innovation by an order of magnitude.” – Sean Ammirati, Business Professor, Carnegie Mellon University
AI, Startups, and the Bigger Picture
When it comes to startups using generative AI, the advantages that it may offer could be tremendous to individual firms. But from a broader perspective, there is a much large impact related to increasing business innovation with AI. Startups in general are the cornerstone of growth and innovation for the U.S. They provide a greater capacity for economic resilience, and they invite cutting edge ideas and solutions. If generative AI can facilitate not only startup success but growth, the national economy will benefit as well. And by accelerating startup advancement, generative AI could jumpstart a wave of innovation. Many technology solution experts believe we are on the verge of such an event. They also believe startups will lead the way. But even if this isn’t the case, it’s clear generative AI is already helping small firms excel. Time will tell if it is indeed the success accelerator that it’s supposed to be.
Outsourcing is essential for business growth–read why in this Bold story.
