Artificial intelligence (AI) can be a powerful tool for startups. It can help them automate repetitive tasks and processes, improve decision-making processes and create new products and services. But those are just the obvious possibilities.
One of the biggest benefits of AI for startups is the ability to handle large amounts of data. In the past, it was very resource-intensive and expensive to handle large amounts of data, and it was usually only large companies with financial resources who had the opportunity to do so. However, with the development of AI technologies such as machine learning and data mining, it has become possible for small companies to handle large amounts of data in a more efficient way. This has a clear impact on market selection.
Two ways to do it:
Start-up companies basically have two ways of working with market selection. One systematic and one unsystematic.
The systematic method is characterized by the fact that the process is structured and formalized through that decision-makers in the company are able to isolate and define the problem, define the criteria for the selection and weight these, rank the criteria and make a decision based on large amounts of data about this.
The alternative to a structured approach is the unstructured one. This method occurs more often where decision makers may have a limited ability to analyze and acquire information about markets and rather make choices based on an opportunistic basis.
Of those who choose a structured method to choose an international market, there are companies with a lot of resources despite their size. In a study carried out by Musso and Francioni in 2014, it can be seen that only 24.9% of small and medium-sized companies use a structured approach and that those who do so are in the upper echelon of the sample when it comes to resources. This is where AI comes in.
AI can help automate processes such as data collection, preparation and analysis, which can save time and resources. Machine learning can predict future trends and improve decisions, for example by identifying customers who are most likely to buy a product or service. Data mining can explore large amounts of data and find new patterns and relationships that can provide better insight into customer behavior and market development.
Overall, artificial intelligence can be a powerful tool for start-ups to handle large amounts of data and thus gain better decision-making bases, which can give them a competitive advantage.
It can also enable small companies to compete more effectively with large companies and to discover new markets that they had not previously seen as an opportunity.
Read also: Benefits of getting ideas from different sources
Source:
Musso, F., & Francioni, B. (2014). International strategy for SMEs: criteria for foreign markets and entry modes selection.
Urbino, Italy: Journal of Small Business and Enterprise Development.