AI startups help other companies change their business operations and improve their customer experience. Along with B2B AI startups, B2C AI solutions make people’s lives easier (as recommendation systems and navigation tools do) or more meaningful (as apps for meditation do).

We are to discuss the path from “I want to enter the AI market, which is growing by about 20% each year” to “My product is in demand and my team is running smoothly”. Knowing how to start an AI startup, you can do it within various domains. You can apply the basic plan you see below to various goals, from launching a virtual assistant to developing a tool for business analysis.

Step #1. Ideation and Market Research

We are afraid that neither Mark Zuckerberg nor Elon Musk can tell you how to start a startup without a groundbreaking idea. For instance, Grammarly, an AI-powered writing assistant, started with the simple idea of enhancing writing proficiency. Through continuous validation and iteration, Grammarly became a ubiquitous tool used by millions worldwide.

Action tip. Engage with potential customers to gain insights into their pain points and preferences.

Step #2. Formulating Your Value Proposition

Once you know who you’re trying to help with your AI solution, explain clearly how it can simplify certain processes and bring real results for your customers. Highlight what makes your AI different from other options out there to decide on the best tech stack and grab the interest of both investors and customers.

Action tip. Utilize industry reports, customer surveys, and competitor analysis to make your concept more relevant to the market.

Step #3. Deciding on Tech Stack

Which technologies will be the heart of your AI startup? This impacts which specialists to hire on your team. A good idea is to discuss and modify the tech stack together with the tech specialists.

Core Technologies for AI

• Machine learning frameworks. TensorFlow, PyTorch, or Scikit-learn are the most popular examples.
• Data processing tools like Apache Spark, Hadoop, or Apache Flink.
• Such cloud services as AWS, Google Cloud Platform, or Microsoft Azure for scalable compute resources, storage, and running cloud-based AI services like AI Platform, SageMaker, or Azure Machine Learning.

Action tip: Consider performance, ease of use, community support, and integration capabilities of each technology.

Infrastructure and Deployment

• Use Docker or Kubernetes to containerize your AI applications, enabling seamless deployment and scalability across different environments.
• Implement tools like Jenkins, GitLab CI, or CircleCI to automate and rapidly iterate deployment.
• Integrate monitoring tools such as Prometheus, Grafana, or ELK stack to track the performance and health of your AI systems in real time.

Action tip. Prioritize scalability, reliability, and security when designing your infrastructure and deployment architecture.

Specialized AI Technologies

• For language generation, sentiment analysis, and text classification, Incorporate NLP libraries like NLTK, spaCy, or Hugging Face Transformers
• Utilize computer vision frameworks like OpenCV, TensorFlow Object Detection API, or PyTorch Vision for image recognition, object detection, and image segmentation
• Explore reinforcement learning libraries such as OpenAI Gym, RLlib, or Stable Baselines for developing AI agents capable of learning and adapting to dynamic environments

Step #4. Building a Skilled Team

Find experts in machine learning, data science, making software, and growing a business. Get a group of professionals who are really good at what they do. Did you know that Open AI, the creators of ChatGPT, overcome talent shortage by leveraging talent from around the world? You also can do that to remain at the forefront of innovation.

How to build a startup team dispersed in different countries

It’s better to learn how to build a startup with international team members in advance, as there are caveats.

• Working across borders adds complexity to HR and operational processes. You need to ensure compliance with local employment laws and data protection regulations. Yet, you can delegate this responsibility to a EOR provider, a company which hires specialists for their clients worldwide and takes over all the hiring paperwork.

• Sharing sensitive information across borders may raise privacy and security concerns. Yet, your international data protection could be no less robust than if all your team is office-based. Stick to well-known cybersecurity measures like multifactor authentication, utilizing corporate password managers, and signing NDAs with your business partners and teammates.

Action tip. Outstaffing services can help you find, hire and onboard qualifies team members. Partner with reputable IT outstaffing agencies that comply with well-known security law like GDPR and specialize in sourcing AI talent. Thus, they can save your time without causing any risks.

Step #5. Prototyping and Iteration

With your team in place, focus on developing a minimum viable product (MVP) to test your AI solution in a real-world environment. First, build just the most useful features. You can make advancements after gathering feedback from users. That is how to start a startup not for all the money in the world, learn about its potential drawbacks and fix them ASAP.

Action tip. Stick to agile approaches like Scrum or Kanban to cover changing requirements quickly.

Step #6. Securing Funding

You can start developing your AI solution with the help of open-source software. Yet, you will definitely need to pay compensations for developers and scale your operations and your team when demand for your products increases So, how to create a startup capital?

• Think about where you can get money from, like investors or grants.
• Make a plan that shows why your business is a good idea. Talk about who will buy your product, what is your revenue model, and how you’ll grow. Show that people like your idea, that your customers are happy, and that your technology works well.
• Then, tell your story in a way that makes sense to the people you’re talking to.

Step #7. Compliance and Ethical Considerations

You have to use AI in your startup ethically. Learn about the laws and rules about keeping data safe. Some of such laws are GDPR and CCPA. Do everything possible to protect people’s information and follow the rules. Be honest about how your AI makes decisions, so people can trust you

Step #8. Go-to-Market Strategy

With your product refined and funding secured, you need to understand how to create a startup go-to-market strategy to introduce your AI startup to the world. Personalize your messaging for different customer groups and select the most suitable channels to reach each of them. Content marketing, social media activities, and SEO are great tools to create awareness about what you offer.

Action tip: Partner with industry influencers, media outlets, and complementary businesses to exchange experience, generate buzz and acquire early adopters.

Here, our review of a successful startup journey reaches its end. Yet, a startup itself should be gaining momentum if your focus is:

• Not on how to start a startup and wait for a lucky hour;
• But on how to build a startup by improving a team and a product every day.

Not by chance, startups need to study feedback and draw conclusions at each stage of the path that we have considered today.