4 Strategies for Leveraging New Technology as a Growing Startup

Entrepreneurs are at a crossroads as they face the harsh reality that startup funding will fall to a five-year low in the final quarter of 2023. This year calls for a revolution in business strategy, with AI emerging not just as a tool but as a necessity for planning, launching, and scaling ventures from the beginning.

McKinsey’s AI report highlights how the use of generative AI is expanding across various business sectors. This surge in AI adoption is more than just a trend. This is evidence of its effectiveness in streamlining business processes, increasing efficiency, and promoting growth. This hints at a future where the integration of AI may not only be advantageous for startups, but essential to their survival, success, and funding efforts.

Related: How to leverage AI to power your business

What are the biggest benefits of AI for startups?

The first big benefit of using AI solutions in startups is strategic automation. By automating routine tasks such as data entry, scheduling, and report generation, startups can significantly improve operational efficiency. This automation frees up employee time and energy for more strategic and creative tasks, increasing overall productivity and efficiency. This strategic introduction of AI in workflow automation is revolutionizing startup operations and establishing a new benchmark for efficiency in the entrepreneurial world.

You may already know about AI’s ability to automate tasks, which can also be invaluable during the early stages of brainstorming and prototyping. Generative AI tools are adept at quickly generating a wide range of ideas for products, marketing campaigns, and business models.

For example, Virgin Voyages’ Jen AI is a cutting-edge AI tool that allows users to collaborate with Jennifer Lopez to create customized invitations. The process includes a short interactive session using augmented reality technology to simplify the creation of personalized invitations that can be distributed to friends and family. Similarly, World Wildlife Fund’s #WorldWithoutNature campaign collaborated with over 200 companies to leverage AI to create visuals of a world without nature to highlight the dire consequences of environmental neglect. These examples show how AI can streamline the creative process. By using AI for campaigns and product development, startups can ease the creative burden on their teams and free them to focus on growth and other business priorities.

Related: How to use AI and automation to improve your business goals

4 Strategies for Leveraging New Technology as a Growing Startup

This rapid innovation enabled by AI allows entrepreneurs to explore more possibilities efficiently. Here are his four strategies for startups to integrate AI for business success.

1. Start with the business problem, not just the technology.

When considering AI solutions for your startup, focus on solutions that address your unique business challenges. Avoid the temptation to choose cutting-edge tools just because they’re popular. Such a choice can lead to wasted investment. According to an IBM survey of 2,500 global executives, top-performing companies achieve a 13% return on investment from AI projects, more than double the average ROI of 5.9%. This statistic highlights the importance of strategic selection and application of AI technologies.

Start by identifying the core problem facing your business. Don’t let the allure of new technology distract you from your actual needs. Understand your objectives and pinpoint specific business challenges and inefficiencies that can be effectively addressed with AI and other technology tools. When investing in these tools, prioritize based on benefit and potential impact on team productivity.

2. Test new technology in pilot projects before full-scale implementation.

Rushing to implement new technology without fully understanding the impact on team productivity and customer perception can have negative effects. Therefore, you should consider introducing new technologies through small, low-risk pilot projects. This method allows you to assess the effectiveness of your technology, identify potential problems, and make adjustments as necessary before making a major investment. Gathering data and feedback from your team during this pilot phase is essential to developing a comprehensive and effective technology implementation plan.

3. Empower your team with smart technology integration.

The impact of technology in a startup is determined by how skillfully the team uses it. Prioritize education and skill development when creating your technology implementation plan. Investing in training will help your team members become proficient in using new tools and help streamline your workflow.

We encourage a culture of curiosity and experimentation with technology. This further increases innovation and efficiency. Additionally, consider how AI can directly benefit your employees and reduce stress. Incorporating AI into wellness efforts is essential to preventing employee burnout from implementing new technology, especially as stress levels continue to rise. For example, if your startup uses AI to create 3D printed objects, can you also use AI to design ergonomic furniture for remote workers? Or can AI automate tasks and save time? If you’re saving time, can you convert this saved time into paid breaks for your team? Implementing a strategy like this can significantly improve employee satisfaction and productivity.

Related: Collaboration is the key to super-fast growth (with a little help from AI)

4. Avoid isolated innovation:

As you embark on your startup journey as a solopreneur handling all aspects of your business, remember that AI can be an invaluable ally, almost like an agent. However, the entrepreneurial journey doesn’t have to be a lonely one. With AI, you can explore collaboration and leverage external expertise.

Consider partnering with technology providers, consultants, or local universities for additional technical knowledge and guidance. Actively participate in entrepreneurial communities and networks, especially those focused on technology adoption. These connections provide a wealth of valuable peer support and shared best practices, greatly enriching the startup experience and reducing the sense of isolation often felt in solopreneurship.

AI is transforming the way entrepreneurs approach business challenges and opportunities, offering a variety of applications tailored to their unique needs. This adaptability makes AI an essential tool for entrepreneurs navigating the complexities of starting and developing a business.