14 Best AI Business and Startup Ideas to Start in 2024

Artificial intelligence (AI) is exploding, and the market is expected to reach more than $826 billion by 2030.¹ AI is fundamentally changing the nature of business by automating and performing tasks that typically require human intelligence. Savvy entrepreneurs can take advantage of this opportunity by starting AI businesses that use machine learning, natural language processing or other AI technologies to solve a problem.

While it’s finding use cases in every industry, AI use is particularly widespread in supply chain management, customer support, manufacturing and marketing. All businesses can benefit from AI’s ability to quickly analyze vast datasets and provide insights that can drive strategic decision-making.²

This article will explore 14 of the best artificial intelligence business opportunities and how you can develop, fund and market your startup.

The following AI-based business ideas can use technology to automate, improve or perform business tasks:

1. Real-time customer sentiment monitoring dashboard for brands
2. Content recommendation engine for marketers
3. Dynamic pricing optimization for retailers
4. Mental health chatbot for personal use
5. Chronic health condition management 
6. Personalized financial advice based on specific goals
7. Grocery shopping app that creates a shopping plan based on current sale prices 
8. Detection and prevention of phishing and other types of scams
9. Supply chain risk assessment for disruptions 
10. Chatbot for foreign language learners to practice conversational skills
11. Smart home system to optimize energy usage
12. Automated video editing for Twitch streamers
13. Continuous competitor analysis tool for pricing, growth and marketing strategies 
14. Bias reduction in hiring for HR departments

Finding AI startup ideas is only the beginning of creating successful startups. The next steps are to identify the market’s needs and build your team. Start by defining your target market, analyzing competitors’ strategies and assessing the demand for your AI solutions. AI tools like surveys, focus groups and data analytics can clarify customers’ needs, customer behavior and market trends.³

A feasibility study assesses the viability of your AI startup idea in technical, economic, legal and operational terms. A preliminary analysis will evaluate the problem your solution addresses and its potential market demand. Estimate the income potential and expected costs, including regulatory compliance expenses. Seek input from a diverse team to thoroughly evaluate your project’s technical and economic feasibility.⁴

Your team should include people with a mix of technical skills and industry experience. Identify the roles you need to fill, such as data scientists, machine learning engineers and domain experts. Make sure you foster a culture of collaboration and open communication and establish clear metrics, so everyone is working toward the same goals.⁵

Since your primary business function will be AI, you’ll need to be thorough in selecting the best technology. Evaluate options based on ease of integration, scalability and support for open-source frameworks like TensorFlow, PyTorch and Scikit-learn. Consider whether you’ll use it on-premises or in the cloud and whether it needs to support internal teams or external customers.⁶

Effective AI-powered systems rely on high-quality data, so your data collection and management strategies will affect the quality of your product. You’ll need to establish data governance policies, implement secure data storage and develop a data architecture that supports your AI’s needs. Techniques such as data preprocessing, feature selection and data cleaning will prepare your data to train your AI models.⁷

Ethical use is one of the major concerns with AI. Issues like bias, privacy and transparency need to be addressed. You can begin to mitigate bias by using diverse and representative training data. Strong governance frameworks can manage AI usage rights, data privacy and security protocols. Regular monitoring, retraining and updates will help your AI system comply with ethical standards and responsible use.⁸

AI startup funding more than doubled during the second quarter of 2024, when, for the first time, investments in the AI sector accounted for the largest portion of new startup investments.⁹

Look into various funding options, including bootstrapping, angel investors, venture capital and crowdfunding. Each option has its benefits and risks. For example, venture capital can provide substantial funds and strategic support, but you’ll have to give up equity to secure it.¹⁰

No matter what type of funding you want to secure, you’ll need to craft a compelling narrative that highlights your business model, market potential and unique value proposition. Investors want clear, data-driven presentations that showcase your traction, your financial projections and your team’s abilities. Tailor your pitch to address the specific concerns of the investors you’re pitching to.¹¹

A large portion of your company’s success will depend on your marketing strategies and how well you can scale. Develop a marketing strategy that identifies your target audience through market research and sets clear objectives with a mix of tactics such as content marketing, SEO and paid advertising. A strong brand narrative will make your marketing more effective.¹²

Use social media platforms and digital marketing techniques to reach and engage your potential customers. Educate them about your product and create valuable content. Track and optimize your campaigns with analytics.¹²

Based on your early results, invest in talent and technology to support your growth. Regularly evaluate and adapt your strategies based on your performance metrics and market feedback.¹³

All startups face challenges, but AI startups have to deal with more than most due to the technical nature of their products and the shifting regulatory landscape. AI implementation often faces technical problems such as integrating with existing systems and ensuring data quality. One way to overcome these challenges is through phased implementation, starting with a proof of concept, to identify and address potential technical issues early.¹⁴

Though there’s currently only one AI-specific regulation, the EU’s AI Act, many existing data privacy and consumer protection regulations apply to artificial intelligence startup ideas. You’ll need to collaborate with your IT and legal teams to make sure you’re complying with all applicable regulations and frameworks.¹⁵

If you’re hoping to create the next disruptive startup with your artificial intelligence business ideas, you’ll need to know how to anticipate and overcome the business challenges you’ll face. William & Mary’s Online MBA program can help you learn the skills you need to succeed as a global business leader.

Built around the concept of “wicked problems”—those that aren’t well-defined and have no clear solutions—our curriculum teaches design thinking and the critical analysis skills that are vital for modern entrepreneurs.

Schedule a call with one of our admissions outreach advisors today to learn more.