• by Ray Schultz , Columnist, March 28, 2024

Logic suggests that only established firms are able to use AI. But it isn’t so, judging by How AI is Redefining Startup GTM Strategy, a study from HubSpot.  

On the contrary, startups are “adopting AI across the entire business development process — from writing emails to staff, to ideation, product development, go-to-market, ongoing operations, and customer service.” 

Specifically, they are using AI to achieve these goals: 

• Customer targeting and segmentation — 51%
• Personalization of marketing content — 46%
• Better understanding customer journey — 39% 
• Improving customer experience/success — 39%
• Predictive analytics for sales forecasting — 38% 
• Product development and/or production — 36% 
• Pricing strategy and optimization — 34%
• Supply chain and/or logistics optimization — 22% 

• Cost of external hiring for those with AI experience — 47% 
• Integration issues between AI and existing systems — 46% 
• Lack of existing employees’ AI expertise — 44% 
• Overall cost of AI tools — 39%

Moreover, founders share these concerns: 

• Data privacy — 29% 
• Ethical implications — 24% 
• Uncertainty with reliability/accuracy — 16%
• No specific concerns — 14% 
• Integration with existing systems/processes — 14%

HubSpot worked with CXD Studio via Pollfish to survey 1,000+ early-stage startup founders (seed to Series B) across industries in January 2024.

It found that usage varies by industry. The widest use is in the information technology/Software vertical (85%). Next are Professional and business services (77%), Manufacturing (72%), Leisure and Hospitality (70%) and Financial activities and/or FinTech (69%). Retail has a 67% startup usage rate. 

Are you new to AI (and business)? The study recommends these best practices:  

• Segment contacts more strategically for marketing, sales and services.
• Personalize everything from email, to web content to SMS messaging.
• Empower employees to experiment with AI however they feel comfortable, and support them with tools and resources approved by the company. 
• Train and invest in employees.