Around 70 per cent Indian startups leveraging AI across core business functions: Report

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Around 70 per cent of startups covered in a survey have started leveraging artificial intelligence for core business functions, social media major Meta said in a report on Friday.

The Meta Emerging Businesses Report prepared by professional services firm Alvarez & Marsal, India covered insight based on survey of 100 high growth Indian startups.

"More than 70 per cent of startups are integrating it into their business operations. In marketing alone, 87 per cent of AI adopters reported around 30 per cent improvement in cost per acquisition (CPA). Sectors such as healthcare, edtech, and beauty are leading in AI maturity leveraging automation for customer service, predictive analytics, and personalization," the report said.

Around 95 per cent of startups surveyed shared that they have expanded their business in tier-2 and 3 cities.

"Tier 2 and 3 markets are becoming the new battlegrounds for scale. Nearly all surveyed startups are expanding into these regions, driven by demand, digital accessibility, and distribution ease. Service-based startups are entering these markets nearly a year earlier than product counterparts," the report said.

The study shows 52 per cent of startups are expanding cross-border, largely driven by larger total addressable markets and increasing global appetite for Indian-origin offerings.

The USA, UAE, and UK emerged as the top export markets.

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