As Steve Jobs once said “You've got to start with the customer experience and work backwards to the technology. You can't start with the technology and try to figure out where you're going to try and sell it."
Artificial Intelligence is supposed to be the future (in fact it is), a powerful tool that changes everything. But even with all the excitement about AI, many new startups using AI are not doing well and we have witnessed many of those startups with huge fundings from VCs, Grants etc are now just names in history. They struggle to grow or even stay in business. The main reason isn't that their AI technology is not ideal, It's often because they are using AI in the wrong direction. They are trying to invent amazing new things with AI instead of using it to fix problems that already exist. Imagine a startup wanting to build the next big thing with AI. They see big dreams and want to create something nobody has ever seen. This push for new ideas comes from investors, news stories, and smart AI experts who love tough challenges. But this often makes startups create fancy AI solutions for problems that aren't really problems. Or, if they are problems, they don't bother people enough for them to pay for a solution. Or maybe, the new AI just doesn't fit into how people already work. So, even if the technology is amazing, it's hard to have a clear revenue model. When startups try to solve problems that aren't actually problems, they waste a lot of money and effort. For example, an AI that writes very strange poems might be cool, but most people won't pay for it. If there's no real need, or people don't want to spend money on what the AI does, the company will ultimately suffer and fail. They focus too much on the technology itself, and not enough on what customers truly need.
Also, by aiming for big, new ideas, these startups often miss the everyday, painful issues that businesses face. They ignore the less exciting but very important ways AI could help right now. Think about simple tasks that take up a lot of time for small businesses, like answering common customer questions, or reading complex and long news articles or summaries without a core subject. Or maybe making sure products are always in stock. Or getting marketing messages to the right people at the right time. AI could make these things much better and cheaper. These aren't breakthrough innovations, but they are very helpful changes that save money and make businesses run smoother. This wrong focus leads to spending a lot of money without getting much back. Creating new AI is expensive. It needs smart people and powerful infrastructures. When this money is spent on ideas that aren't proven to work in the market, the startup runs out of cash quickly. They can't make enough money to keep going. Also, talented AI experts are put on projects that might not lead to a real product, instead of fixing common business issues where AI could clearly help.The real AI race is not just about who can make the most complex AI product or solution. It's about who can use AI smartly to provide clear, helpful solutions. This often means making things faster, cheaper, more accurate, or more personal. The most successful AI startups today are usually those that solve a clear market need, fix a bottleneck, or make an existing product much better. Things like AI helping customer service, predicting how much product to order, or finding fake activities might not sound exciting. But they are very important ways AI can help businesses make more money and be more stable. For startups to do well with AI, they need to change their thinking. They should shift from just wanting to be new and different to using AI to solve real problems. This means carefully researching what people need, truly understanding customers, and being ready to apply AI to common, but impactful, challenges. By using AI to make current operations better, lower costs, help with decisions, and improve how users experience things that already exist, startups can build strong businesses. Then, with that success, they can work on truly new and exciting ideas that they know will be useful. The future of startups depends on how well they use AI to solve actual problems, not just chasing cool but unproven technologies.
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