New Delhi: A new survey by Meta, in collaboration with Alvarez and Marsal India (A&M India), has revealed that over 70% of Indian startups are now using artificial intelligence (AI) to power their core business functions. The survey, conducted among 100 high-growth startups, highlights how AI is transforming operations, reducing costs, and enhancing customer experiences.
This shift marks a major change in how modern businesses are being run, especially in India’s rapidly growing digital economy.
AI is a Key Growth Driver
87% of AI-using startups said AI tools helped them reduce their cost per acquisition by at least 30%.
AI is being used to automate, predict trends, and personalise services.
Sectors like healthcare, edtech, and beauty are leading in AI adoption.
AI tools help in simplifying operations and improving user experiences.
Small Cities, Big Opportunities
Many startups are now expanding into tier 2 and tier 3 cities.
These regions offer new consumer bases and rising demand.
Product-based startups lead the way, but service-based ones are growing fast.
Rise of Omnichannel Models
2 out of 3 startups now follow an omnichannel strategy.
Customers often begin their journey through online ads, WhatsApp, or influencer Reels.
These are followed by in-store retail experiences, especially in fitness, fashion, and home decor sectors.
Startups Eye Global and Cross-Category Expansion
52% of startups are actively exploring international markets.
84% of startups are expanding beyond their core product lines.
Tools like social listening and keyword analysis are being used to spot new trends and open new revenue streams.
Key Growth Levers Identified
The report identifies six major growth strategies for startups:
AI integration
Expansion into tier 2 and 3 cities
Cross-border scaling
Omnichannel presence
Category expansion
Creator-led branding
The Meta-A&M India report clearly shows how AI is no longer optional for startups — it is a must-have tool for staying competitive. With rising opportunities in smaller cities and global markets, Indian startups are now building smarter, faster, and more connected businesses.
