Artificial Intelligence is no longer a buzzword. Rather it is one of the fastest-growing technologies of the current era. In addition to mathematical and writing tasks, AI applications now have the power to help humans in most disciplines, whether it be analyzing medical reports, creating accounting documents, making real estate plans, and much more. According to research by CompTIA, close to 92% of businesses now plan to invest in AI on an ongoing basis.
For entrepreneurs planning to start a business in the field of artificial intelligence, there is no better time than the present. In this blog post by The Chatbot, we’ll explore a host of helpful strategies to help you get your AI business off the group and remain successful for the long term.
- Choose Your Company Type
In addition to creating AI applications, here are a range of other AI-based businesses to consider:
- AI Research: The core focus of these companies is to conduct research and aid the development of other businesses trying to develop AI products. Conversely, your business can also be oriented towards studying the impact of AI on businesses and society in general. Given the limited research literature around AI, any strides you make in this field can have a major impact on public policies and the new business landscape.
- AI-Driven Healthcare: AI is now increasingly used in the healthcare field to aid doctors in faster illness detection and treatment. When it comes to analyzing reports, AI-based tools can complete tasks in a fraction of the time compared to humans. However, every disease/ailment has different symptoms and parameters; hence you can choose to create applications to tackle specific diseases, such as cancer, Alzheimer’s, etc., to help find a cure and make a positive impact on society.
Additionally, when deciding on your niche, remember to consider your strengths, weaknesses, area(s) of expertise, and funding requirements.
- Create a Funding Plan
From product development to marketing and a host of other administrative projects, every aspect of your business will require an investment of money. Additionally, in the field of AI, you’ll need to dedicate large sums of money towards research and development to find areas of opportunity and create products based on market trends and consumer needs.
If you plan to fund your company through a business loan, then having a strong credit score will be important. Ideally, scores above 740 are considered good, and anything higher than that will help you secure the required amount and good repayment terms. In addition, you can consider bootstrapping your business or pitching your business idea to venture capitalists (VC) to obtain private funding. However, remember that VCs will demand a percentage of your equity in exchange for their funding.
- Establish Strong Business Foundations
Research by Investopedia shows that 20% of new businesses fail within the first two years, and 45% shut down within the first five years. And the business landscape in the AI field is no different. However, as an entrepreneur, you know that creating a successful business involves consistently going against the tide, are here are some of the best foundational steps you should take to increase your chances of success:
- Choose the Right Legal Structure: An LLC is the best business structure for new AI businesses as it protects the owner (you) from business-related liabilities, is easy to establish, and provides a host of tax benefits.
- Build a Competent Team: Hiring a competent team will result in a great product, regardless of the niche. Additionally, this will help to outperform new and existing competitors, increasing your chances of success in the long and short term. Whether you need developers, market researchers, or other professionals, seek to hire employees who buy into your vision and share the same passion for AI.
From research to developing applications, the AI industry currently has numerous underserved niches entrepreneurs can focus on for creating a successful business. In addition to a great idea and execution, having a strong credit score will be integral for securing funding. Additionally, employees will be the backbone of the company; hence invest ample time and effort towards hiring competent, passionate candidates.
The Chatbot magazine provides worthwhile, thoughtful and entertaining content about everything to do with the astonishing growth in chatbot technology. Contact us today to learn more!