9 hours ago
Over 70% startups integrating AI into core business functions: Meta study
Over the last decade, India's startup ecosystem has witnessed a surge in early-stage funding, consumer affluence and digital penetration across both metro and non-metro cities. Now, a new Meta-commissioned report says that more than 70 per cent of startups are now using and integrating artificial intelligence in their core business functions.
The study, conducted by Alvarez and Marsal India (A&M India) captures 'insights based on deep conversations with 100 high-growth Indian startups' and highlights six 'key levers' – AI adoption, cross-border expansion, omnichannel presence, Tier 2/3 market expansion, category diversification, and creator-led brand building.
In marketing, Meta claimed that 87 per cent of AI adopters said that they noticed a 30 per cent improvement in cost per acquisition. When it comes to using AI for customer service, automation, predictive analysis and personalisation, sectors such as healthcare, beauty, and edtech seem to be leading at the moment.
The report also claims that 67 per cent of Indian startups are using omnichannel models to get a better overview of how consumers juggle between online and offline channels. As it turns out, the discovery phase usually starts with digital ads, WhatsApp messages, creator-led Reels, and eventually transitions to physical retail, especially in high-engagement categories like home, fitness, and fashion.
Also, tier 2 and tier 3 markets are now getting more limelight. Meta says that a majority of startups that were surveyed in the study are now expanding in these demand-driven regions, with service-focused startups entering these markets almost a year after their product-focused counterparts.
Driven by larger total addressable markets, around 52 per cent of startups are now expanding cross-border. As for startups that are looking for ways to increase consumer engagement and generate new revenue streams, category expansion has emerged as one of the most important growth levers. The Meta study suggests that 84 per cent of total startups are now looking beyond their core offerings and are increasingly relying on digital tools like social listening, keyword analysis and marketplace data to identify new opportunities.
