70% of Indian startups bet big on AI to fuel growth

As per the Indian Tech Startup Landscape Report 2023, over 950 new technology startups were founded and over 750 were funded in the past year, as per economic times.

According to recent reports, 70% of Indian startups are heavily investing in AI, underscoring its critical role in shaping the future of business in the country.

But what’s driving this massive adoption of AI, and how is it impacting the startup ecosystem?

The AI Surge in India’s Startup Scene

India’s startup ecosystem is vibrant and growing rapidly, with over 31,000 tech companies now contributing to this booming sector. Over the past five years, Indian startups have attracted over $70 billion in investments, demonstrating strong investor confidence in the country's tech innovation potential.

With AI being one of the key areas of focus, startups are leveraging this technology to innovate, streamline operations, and drive profitability.

Why AI?

AI’s potential to transform business operations is unmatched. From automating routine tasks to providing deep insights through data analytics, AI empowers startups to operate more efficiently and make informed decisions.

Industry experts predict that AI could contribute as much as $15.7 trillion to the global economy by 2030, a figure that speaks volumes about its value.

For Indian startups, AI is not just a tool for enhancing existing processes—it's a strategic asset that can lead to exponential growth.

Startups are using AI to improve customer experiences, optimize supply chains, and even predict market trends, all of which contribute to their competitive edge in a crowded market.

Industry Leaders Weigh In

Leaders in the Indian tech industry are optimistic about AI’s role in the future.

Debjani Ghosh, President of NASSCOM, emphasized the need for exponential funding in the DeepTech industry to build a robust ecosystem. She highlighted how AI is central to this development, especially in helping startups scale and innovate at a pace that keeps them ahead of global competitors.

Moreover, as startups increasingly adopt AI, there’s a notable shift towards decentralizing the startup ecosystem, with significant growth happening in tier-2 and tier-3 cities.

These regions, once considered peripheral, are now becoming innovation hubs, contributing substantially to the ecosystem's overall growth.

The Future of AI in Indian Startups

Looking ahead, the adoption of AI by Indian startups is expected to only accelerate. As more startups recognize the benefits of AI in driving efficiency, reducing costs, and boosting profitability, we can expect to see continued innovation and a steady rise in AI-driven businesses.

The focus will likely be on developing customized AI solutions that cater to the specific needs of different industries, from healthcare to finance, and beyond.

How We Can Help

As AI continues to transform the Indian startup landscape, the need for robust, scalable AI solutions has never been greater.

At TheCodeWork , we specialize in helping startups integrate AI-based solutions that are tailored to their unique challenges.

Whether it’s implementing AI to automate processes, optimize decision-making, or enhance customer engagement, we provide the expertise and tools necessary to unlock AI’s full potential.

If you’re a startup looking to harness the power of AI for growth, reach out to us today. Let’s work together to build the future of your business, powered by AI.