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Indian Startups Use AI to Boost Operations and Expand Globally

Startups

Business Honor
01 July, 2025

Meta survey shows 70% of Indian startups adopt AI for improved operations and global expansion.

A Meta survey, conducted in collaboration with Alvarez & Marsal, recently shows that about 70% of Indian startups have begun implementing artificial intelligence (AI) across their fundamental business operations. The Meta Emerging Businesses Report shares glimpses of 100 high-growth startups and how AI is transforming businesses, particularly in marketing, customer service, and predictive analytics. AI marketing has been a revelation, with 87% of the users of AI seeing a 30% decrease in cost per acquisition (CPA). Healthcare, cosmetics, and education technology are some of the leading sectors in AI deployment, utilizing technologies such as automation and customization to enhance the customer experience and business. The deployment of AI in not only improving performance but also reshaping startups to become more capable of competing within a fast-changing marketplace.

Besides technological expansion, startups are also expanding their presence in Tier-II and Tier-III cities, with 95% of startups included in the survey reflecting active expansion in these markets. Demand, digital penetration, and ease of distribution in these markets propel these expansions. Significantly, service-focused startups are penetrating these markets faster than product-based equivalents, as they look to tap forthcoming customer segments ahead of time. Furthermore, the report indicates that 52% of startups are growing cross-border, reaching out to larger markets such as the USA, UAE, and UK, where the demand for Indian-origin products is increasing. Cross-border growth is facilitated by the growing global demand for Indian innovations coupled with the larger overall addressable markets.

As Sandhya Devanathan, VP of Meta India and Southeast Asia, pointed out, "Startups that think smart and act fast to evolve will lead the charge." By embracing AI, Tiered market expansion, and omnichannel approaches, Indian startups are establishing the groundwork for long-term growth and innovation, paving the way for a more competitive global presence.