Majority of Indian startups leveraging AI for core biz functions: reprot
The report by Meta and Alvarez & Marsal revealed that Indian startups are deeply integrating AI into their business operations to derive numerous benefits
Around 70% of startups covered in a survey have started leveraging artificial intelligence for core business functions, social media major Meta said in a report.
The Meta Emerging Businesses Report prepared by professional services firm Alvarez & Marsal, India covered insight based on survey of 100 high growth Indian startups.
"More than 70% of startups are integrating it into their business operations. In marketing alone, 87% of AI adopters reported around 30% improvement in cost per acquisition (CPA). Sectors such as healthcare, edtech, and beauty are leading in AI maturity leveraging automation for customer service, predictive analytics, and personalization," the report said.
Around 95% of startups surveyed shared that they have expanded their business in Tier-II and III cities.
"Tier 2 and 3 markets are becoming the new battlegrounds for scale. Nearly all surveyed startups are expanding into these regions, driven by demand, digital accessibility, and distribution ease. Service-based startups are entering these markets nearly a year earlier than product counterparts," the report said.
“In today’s dynamic times, startups that think smart and act fast to evolve will lead the charge. At Meta, we’re proud to be partners in this journey, equipping startups with cutting-edge AI-powered tools to help them scale and turn their bold ideas into impact,” said Sandhya Devanathan, Vice President, India and South East Asia, Meta.
The study shows 52% of startups are expanding cross-border, largely driven by larger total addressable markets and increasing global appetite for Indian-origin offerings.
The USA, UAE, and UK emerged as the top export markets.
“We’re seeing a significant shift in how Indian startups think about scale — not just for pursuing growth but building more sustainable businesses that focus on value creation. AI, tiered expansion, and omnichannel models are no longer future bets — they’re foundational to execution today. What stands out is how early-stage startups are applying these levers with surprising sophistication,” said Himanshu Bajaj, Managing Director & Head – Alvarez & Marsal India and GCC.