How to Build a Successful AI Startup

Artificial Intelligence has become very popular in the last two decades. Data shows that the AI market will expand at a compound annual growth rate of 38.1% between 2022 and 2030. 83% of businesses state that AI is preeminent in their business plans.

If you are an aspiring techpreneur looking to start an AI business, you are not alone. But the sector is competitive, and you must provide value to the consumer to stand out from the competition. Below are surefire ways on building a successful AI startup:

Acquire and Build Proprietary Data

One of the challenging aspects of building an AI company is sourcing and building proprietary data. Proprietary data is unique to a company and can be used to create a sustainable competitive advantage. Clients and investors want assurance that the datasets you use are proprietary and not some random public data sets collected from unsuspecting consumers.

Without the right data sets, you cannot train your algorithm. An algorithm is the bread and butter of an AI startup, so without it, you don't have customers. How do you develop and maintain proprietary data? Here are various ways:

• Partner with third-parties that provide consumer data
• Collect the data yourself and utilize a machine learning-based algorithm
• Create a free app that collects client data

Solve Consumer Problems

No one will take your startup seriously unless it solves real-life problems. If you're in the transportation industry, you could develop a solution that helps customers find car dealers near them to simplify car buying. The problem you are trying to solve needs to be a pain point for most consumers so you can have a big market for your AI product.

Even as you research the market viability of your product, don't forget to research market adoption. Are clients willing to pay for a product to help them find car dealers? While the AI market has grown by leaps and bounds over the years, there is still some bias among consumers.

Connect with Clients and Investors

Connecting with customers at their level is paramount for an AI startup. First, only a few customers care about the nitty-gritty of your algorithm or how the tech world works. Most just want to know if your product will solve their problem. Meet them where they are by using layman's language to explain how your company will benefit them.

Secondly, investors care about your business model and how they benefit and not how you created your algorithm. Instead of throwing around tech jargon and AI terminologies, speak their language and help them understand why investing in your company is worthwhile.

Hire the Best Team

Your business partners and employees determine your startup's growth. You need to hire people with the right skills, passion, and drive to support your vision for the company. However, don't focus so much on the technical aspects of hiring that you forget other important aspects.

The people you hire should be genuinely interested in your business and embrace workplace culture. Sometimes you may have to work overtime or during weird hours like early mornings and late nights. Are the people you are hiring ready to adjust their schedule?