AI Adoption Soars as 70% of Indian Startups Integrate Tech for Growth, Finds Meta-A&M Report
Over 70% of India's startups use AI in core operations, boosting customer acquisition efficiency by 30%. Key sectors include healthcare, edtech, and beauty.
70% of Indian Startups Now Use AI in Core Operations: Meta-A&M Report
Over 70% of India's fast-growing startups have integrated artificial intelligence (AI) into their main business functions. This shift highlights AI as a key factor driving growth in the startup ecosystem, according to the recent "Six Levers of Growth for India's Startups" report by Meta and Alvarez & Marsal India.
The study, which surveyed 100 rapidly scaling startups, reveals that those adopting AI have seen around a 30% improvement in cost-per-acquisition (CPA) metrics. These improvements come from using automation, predictive analytics, and hyper-personalised customer engagement.
Leading Sectors in AI Adoption
Sectors such as healthcare, edtech, and beauty are at the forefront of AI maturity. These industries use AI to enhance customer service, improve data-driven forecasting, and deliver personalised user experiences.
Omnichannel Strategy Gains Momentum
Following AI, an omnichannel approach is the next most popular growth strategy. About 67% of startups combine digital channels—like online ads, influencer-led reels, and WhatsApp communication—with offline retail. Founders in sectors like fashion, home, and fitness focus on linking digital marketing spend directly to in-store visits to boost ROI.
Growth Through Geographic Expansion
Expanding into Tier 2 and Tier 3 cities has become a major growth avenue. Startups are targeting these non-metro markets to tap into new demand. Service-based startups tend to enter these regions about a year earlier than product-focused ones, often leveraging regional content and local influencers for quicker customer acquisition.
Other Key Growth Levers
- Category Diversification: 84% of startups are expanding into new products or services.
- Creator-Led Brand Building: 88% rely on content creators to drive brand engagement.
Himanshu Bajaj, Managing Director and Head of Alvarez & Marsal India, emphasizes that AI, tiered expansion, and omnichannel models are essential execution strategies today—not just future bets.
Global Expansion on the Rise
More than half (52%) of the startups surveyed are actively expanding internationally. The United States, United Arab Emirates, and the United Kingdom are the top destinations for Indian startups looking to enter global markets. This shows that global outreach is becoming common beyond just the most established companies.
For operations professionals looking to stay ahead, understanding how AI can improve efficiency and customer acquisition is critical. Exploring AI courses and certifications can provide practical skills to implement these strategies effectively. Check out Complete AI Training's latest AI courses for relevant learning paths.
