Top AI Business Ideas for Startups in 2024

Learn about the top AI business ideas for startups in 2024 and revolutionize every business from healthcare to logistics.

AI is improving how every business operates! It truly is.

As per a recent survey, AI global revenue has shown a tremendous acceleration. AI has now become an integral part of every mainstream business. This is the right time for a startup to monetize their business idea by developing AI-based solutions to solving real-world problems.

This comprehensive guide lists the top AI business ideas to kickstart your business in 2024. Explore monetization tips, the cost of building AI solutions, and how to get instant funding.

Reasons to Invest in AI-based Solutions

If you are an entrepreneur with an eye for disruptive technologies, then you must know that 2024 is the year of AI. Businesses are leveraging AI to simplify and automate their operations.

Below are several reasons to consider investing in AI business ideas.

• Cost Reduction and Time Saving

AI is getting more responsible with the ongoing efforts. You can replace manual labor with AI automation to simplify workflows, reduce labor costs, and improve performance.

Mckinsey suggests, that 50% of today’s work activities could be automated using AI, reducing workload by 60% to 70%, boosting productivity.

• Improve Decision Making

Half of business owners expect AI to improve decision-making processes. AI analytics analyze vast data to provide actionable insights for better-informed decisions. From identifying market trends, predicting customer behavior, or optimizing supply chain operations, AI empowers businesses to make smarter choices.

• Better Customer Experience

Today, every solution is built around solving the pain points of customers. Offering highly personalized solutions is the key to success. AI can help you build and tailor your solutions faster with great accuracy. You can deliver personalized experiences to your customers by understanding them better at a granular level.

Nearly 2/3 of business owners think AI will improve their customer relationships. AI improves how you connect with your customers and reduces issue-handling time by 9%.

Also Read- 10 Ways AI will Improve Customer Experience in 2024 (Real-World Examples)

• Competitive Edge

Integrating AI elements throughout your business operations will eventually improve productivity and performance. It will help you get a competitive advantage in a highly dynamic market. AI can build future-ready solutions while meeting current and tomorrow’s market needs. 57% foresee AI increasing web traffic for their company.

• Risk Management

AI makes you proactive. Advanced AI algorithms help you identify anomalies and risks at an early stage. 47% anticipate AI improving their business credibility.

These benefits will boost your confidence to try your hands with AI-based business. Are you ready to scale?

The Current AI Business Landscape: 2024

There is no surprise to the growing global AI market which will reach US$ 1,597B by 2030 at a CAGR of 38.1% from 2022 to 2030.

The key drivers that have accelerated the adoption of AI are the awareness and need to adopt digital transformation. To deliver unmatched experiences, AI is the tool and has made inroads across all major industries, from healthcare to fintech.

It covers everything from offering personalized marketing to predictive analytics, automated customer support, supply chain optimization, and beyond.

AI is becoming better, more human, and more responsible, providing startups with untapped opportunities to build advanced solutions.

Leverage AI to understand pain points and build around them. Below are some AI business ideas that you must consider to solve world problems.

List of 10 AI Business Ideas for Startups

1. Personalized health monitoring
2. AI-powered Recruitment platform
3. Customized e-learning experiences
4. Sustainable energy management
5. AI-driven content creation
6. Automated financial advising
7. Logistics and Supply Startups
8. Market Research Solution

Top Profitable AI-Based Startup Business Ideas Explained

Explore your niche for AI startups and understand how you can make significant changes in the AI industry.

1. Personalized Health Monitoring

People are becoming more aware of their health, and taking precautionary measures. AI has the potential to transform healthcare for everyone. Thus, various AI-based healthcare tools and wearable devices are ruling the market.

You can help your customers track but also predict severe health conditions at an early stage. You can employ machine learning algorithms that analyze your potential customer’s lifestyle, genetics, and current health conditions. Based on your solution, you can offer a subscription-based service that helps them get real-time health insights and early warnings.

Generate revenue streams- Subscription fees, partner with healthcare providers, offer data analytics for medical research

Challenges- Regulatory hurdles, data privacy concerns, high R&D costs

2. AI-powered Recruitment Platform

When it comes to recruitment, every business wants to outsource the process. It is not only time-consuming but also needs a huge investment. To help companies, you can build an AI-powered recruitment platform that analyzes multiple factors, like skills, expertise, experience, location, tech/soft skills, and more.

AI improves recruitment accuracy, reducing employee turnover, and recruitment costs.

Generate revenue streams- Subscription fees from employers, offer premium features for job seekers, provide data insights for HR personal

Challenges- Data accuracy, shift from traditional job boards and networking platforms, and privacy

3. Customized E-learning Experiences

Post-COVID-19, a tremendous shift has shifted from traditional to online education systems. Students are getting an education at their doorsteps. Many organizations have implemented AI to understand students’ learning pace and style to offer personalized education experiences that fit everyone.

With an AI-implemented education platform, you can cater to growing students and help individuals upskill with enlightening sessions and videos.

Generate revenue stream- course and subscription fees, partnership with educational institutions and MSEs to deliver individual courses.

Challenges- regularly updated content, highly competitive market, ensure effective communication, student-teacher collaboration.

4. Sustainable AI Solutions

With rising cloud computing and other technology investment costs, businesses seek sustainable solutions. Today, sustainability has become a necessity rather than a buzzword. PwC estimates that AI can reduce global greenhouse gas (GHG) emissions by 4%.

You can use AI to manage energy consumption, from automating regulated tasks to home system usage, and build eco-friendly solutions. It’s time to think smart and act smart.

Generate revenue streams- real-time warnings, hardware tools, and software for analytics and monitoring.

Challenges- computing energy, labor abuses, bias, and ethics.

5. AI-driven Content Creation

Creating engaging and quality content is time-consuming. People can access a large pool of data within seconds. To stand out and generate multiple content, users need AI-based platforms (ChatGPT, Gemini, and more) to help them create high-quality written, audio or visual content.

Such platforms can transform journalism, and marketing strategies for SEO-optimized content, and produce better images for logo creators. Providing an end-to-end content creation solution might be your luck.

Generate revenue streams- subscription fees, licensing, pay-per-click, and more.

Challenges- maintaining quality, accurate information, unbiased results, reducing deepfake results.

6. Automated Financial Advising

People have become more aware of their finances and, the rising demand for financial advisory services. People want instant solutions that can help them invest at the right time.

AI with the ability to process huge data can generate actionable insights quickly. An AI-based robo-advisory platform can provide personalized investment strategies, risk assessment, and portfolio management, making it easier for people to manage their wealth.

Challenges- trust and privacy issues, data security

7. Logistics and Supply Startups

Supply chains are essential for modern businesses, especially as the world becomes more connected. Artificial Intelligence (AI) offers solutions to handle challenges like order tracking, rising transportation costs, and demand forecasting.

AI startups focus on developing warehousing solutions to enhance demand forecasting, order modification, and inventory processes. Leveraging AI enables businesses to streamline operations. For startups, it’s crucial to plan finances carefully, considering costs and potential profits.

Challenges- costs associated with development and implementation, accuracy

8. Market Research Solution

I might have listed it last, but market research is core to every business. No business can generate insights without analyzing customers, product preferences, and relevant market segments. However, getting accurate and instant market research is not a cup of tea for humans. Thus businesses need AI-powered market research solutions for targeted marketing.

If you want an AI-powered market research solution, connect with OnGraph (customized and readymade/white-label).

Generate revenue streams- panel management, project management, fraud detection integration tools, survey creation, and DIY market research platform for instant results

Also read- Unlock the power of AI in Market Research.

How to Monetise AI-based Startup?

As a startup, you can capitalize on your AI business ideas using the below common go-to-market and monetization models.

1. Product or Service Sales- Sell AI solutions or services to businesses or consumers.
2. Licensing or Royalties- License AI technology to other companies for a fee
3. Data Monetization- Monetize valuable data collected by AI.
4. Partnerships and Collaborations- Collaborate with established companies for revenue-sharing.
5. Advertising and Recommendations- Earn revenue through targeted advertising or recommendations.
6. Subscription Models- Offer subscription-based access to AI platforms.
7. SaaS Model- Charge customers a recurring fee for AI software access.
8. Hardware model- Sell advanced IoT devices with built-in AI capabilities.
9. AI-as-a-service model- Become an AI/ML development shop, creating custom solutions.

Choosing the right model will decide the overall cost of your idea.

How Much Does an AI App Development Cost?

Developing an advanced solution with the latest and delicate technology comes with challenges and costs. The cost of an AI-based business model depends on several factors the idea, data complexity, integrations, tech stack, developers' cost, location, experience, software/hardware requirements, and customization needs.

Based on the type of AI solution, the cost breakdown is as follows.

As a startup with a limited budget, you must consider every aspect included for overall costs. Find the best possible ways and tools to reduce the cost.

If you want to start an AI-based startup, keep reading to understand the process.

Simple Steps to Start an AI Startup in 2024

If you are determined to launch your startup in 2024, consider the following simple steps.

1. Research the market and look for customer’s pain points. Understand how you can use AI to reduce those problems. Also, check potential competitors of your business idea. Validate your business idea with detailed market research tools and platforms.
2. Start looking for funding and connect with investors to explain your vision. You can hire professional pitch deck consultants to help you get investors for your idea.
3. Promote your business across various channels for customer engagement using proven marketing strategies. Hire marketing experts to generate SEO-optimized websites and content.

Keep improving your products and services to meet changing customer needs. Ask for feedback from current users. Implement a lean startup model for quick feedback and improvements.

Start your AI Journey with OnGraph AI Development Services

AI startup ideas span diverse industries like healthcare, logistics, cybersecurity, and legal research, promising revolutionary changes in the way how we live and work. With advancing technology, now is the perfect time to explore the opportunities for AI-based entrepreneurship.

With 15+ years of experience, we have perfected the art of developing crucial solutions. The same goes for developing advanced AI solutions for every industry.

Connect with us for more information.