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13 best AI business ideas: inspiration for entrepreneurs

ai business ideas

While the artificial intelligence (AI) trend started with natural language processing (NLP) models like ChatGPT, AI isn’t just useful for providing text-based answers to user questions. 

Instead, with large language models (LLMs) helping computers better understand human language, the floodgates of AI business ideas have opened. Entrepreneurs can now start a business by leveraging AI to offer a personalized experience for each customer. 

Let’s dig deeper into how businesses leverage AI, what such a company looks like and different ways you can start a profitable venture revolving around AI development. 

How is AI being used for business?

Businesses use AI in various ways to improve decision-making, enhance operations and drive innovation. On a very basic level, they’re using it to streamline menial tasks, such as data entry, customer service inquiries and busy admin work. 

For instance, Vodafone’s TOBi, an AI-powered chatbot, responds instantly to user requests, helps them make payments and performs other customer support tasks, such as resetting login information. 

That said, AI’s use cases aren’t limited to automation. Instead, businesses now use AI for predictive analytics, personalization and process optimization. And some companies base their whole business model around it.  

What is an AI business?

An AI-based company leverages artificial intelligence in its business operations to provide unique value to its customers. This includes all kinds of businesses, from large corporations using AI to improve their decision-making to startups creating smart home management systems.

Examples of AI businesses include:

  • Tesla: The automotive and clean energy company uses AI in its advanced driver assistance functionality—Autopilot.

  • Netflix: The video streaming giant relies on AI to personalize content recommendations for its users. 

  • Spotify: The digital music service employs AI for its Autoplay, music recommendations and personalized playlists

  • Stitch Fix: This ecommerce clothing store uses AI to analyze user-submitted style profiles, provide personalized clothing recommendations and incorporate customers’ feedback to tweak its suggestions. 

Why start an AI business?

For entrepreneurs looking to start a business, there are several attractive reasons to invest in AI. To start, it empowers you to disrupt an industry by offering new, more efficient ways of doing things. Plus, it may help level the playing field against existing businesses with deep industry experience by reducing reliance on accumulated knowledge—and lower the need for higher startup capital

Since artificial intelligence offers ways to tackle complex problems, optimize irregular systems and detect difficult patterns, AI startups have a high potential for growth and a competitive advantage. 

That said, established businesses still hold competitive strengths, such as brand recognition, customer relationships and access to capital. So, carefully navigate the opportunities AI offers for your own business.

13 best AI business ideas

01. AI-generated personalized nutrition plans

You can develop an AI platform that offers personalized nutrition advice based on individual health data. 

Customers can share their health information, dietary preferences and personal goals with the platform. Besides that, you can factor in allergies, dietary restrictions and lifestyle choices to offer tailored solutions. 

Additionally, you can add functionality for the platform to tweak its recommendations based on user feedback. That way, if an individual doesn’t like a particular dish, it can suggest a replacement. 

Learn more: 

02. AI smart home management startups

Another option is to provide a personalized home automation experience. Instead of relying on scheduled routines, an algorithm can analyze user behavior and preferences over time to adjust the thermostat, tweak lighting settings for preferred activities (e.g., watching TV, reading books or cooking) and play appropriate music. 

You can also offer an AI-based functionality to optimize the energy usage of the house by controlling heating, cooling and lighting based on occupancy patterns and weather forecasts.

03. Healthcare startups

The healthcare industry has a lot of room for innovative solutions. You can develop AI algorithms that help healthcare providers analyze large datasets of health records, lifestyle factors and environmental information to identify the associated risk factors for various diseases. As a result, doctors can offer early interventions for individuals at high risk of developing certain conditions. 

Similarly, you can work on AI algorithms that interpret X-rays, magnetic resonance imaging (MRI) and computed tomography (CT) scans to assist physicians in detecting abnormalities. With a vast dataset of annotated medical images, you can help improve diagnostic accuracy, reduce interpretation times and help provide better healthcare. 

04. AI-based marketing agencies

You can establish an AI-based marketing agency that leverages advanced data analytics. By analyzing demographic information, browsing behavior, purchase history and social media interactions, you can develop optimized marketing strategies

With AI, you can help businesses connect with individual customers on a one-to-one level by analyzing customer data in real time. Beyond that, you can identify influencers who are the best fit for particular businesses to promote their services across social media. 

Additionally, you can set up AI tools to monitor search engine results pages (SERPs), search trends and Google Search Console (GSC) keywords to suggest adjustments for clients’ search engine optimization (SEO) strategies.  

ai business ideas - marketing agency

05. AI content creation businesses

While AI-driven content has categorically taken a hit in the recent Google spam update, you can still build tools that help businesses improve their content creation process:

  • Ideation: Gather ideas, statistics and examples for publishing blogs

  • Branding: Help companies improve their brand identity by adjusting their messaging across different communication channels. 

  • Editing: Improve the content creation workflow by offering AI tools to look for logical gaps, readability issues and grammatical errors.

Besides that, with the right approach, you can use AI to offer intelligent translation tools that help businesses optimize content transcreation for the distinct needs of global audiences.

Learn more: 

ai business ideas - content creation

06. Security AI businesses

You can develop digital security solutions that detect potential cybersecurity threats to networks and data systems. Similarly, you can set up a data-driven fraud detection app. 

On the other hand, if you’re more interested in offering physical security, you can work on AI-based surveillance systems to analyze video feeds in real time to identify suspicious behavior and alert security personnel. 

07. Agriculture AI innovations

With climate change becoming a noticeably bigger problem, you can use sensors, drones and AI algorithms to monitor crops, environmental conditions and soil data to develop intelligent farming solutions. 

As a result, you can help agriculture businesses optimize pesticide and fertilizer usage and irrigation. Plus, you can use the data you gather across different farms to inform planting and harvesting schedules. 

08. Autonomous transportation businesses

While Tesla is leading the autopilot initiative for road vehicles, you can also have a say by developing targeted solutions for specific industry segments. For instance, you can invest in an AI-powered platform that brings autonomous features to public transport, provides driving assistance for crowded areas or offers auto-parking features. 

09. Generative media platforms

It’s true that many existing AI solutions have received criticism and pushback for their involvement in the creative ecosystem. That said, much of the negative publicity has to do with stolen art and plagiarized content.


However, this niche still has a lot of promise. For instance, you can invest in a platform that helps artists speed up their workflow by: 

  • Helping them brainstorm ideas. 

  • Creating graphics based on detailed prompts. 

  • Tweaking rough designs to get a colorful first draft. 

Perhaps your AI platform can help create transitional animations faster since artists don’t need to repeat the same step over and over. 

ai business ideas

10. AI human resources recruitment platforms

You can build an intelligent recruitment platform that uses AI technology to analyze resumes, evaluate candidates’ qualifications and match them with appropriate job openings. 

Additionally, you can create chatbots to help businesses schedule interviews, administer coding tests and answer common questions. 

11. AI customer relationship management systems

You can create a customer relationship management (CRM) platform that uses machine learning to analyze customer behavior, predict future purchasing trends and personalize marketing messages. 

This same type of technology also enables businesses to add virtual assistants on their websites to provide immediate assistance to their customers—such as helping them find a suitable shoe size. 

12. AI business operations and logistics

Another AI idea for businesses is to build intelligent business platforms that help firms optimize their workflow. In particular, you can create AI-based systems to increase operational efficiency in supply chain and inventory management and budget allocation

13. AI social media promotion businesses

With Gen Zers constantly driving new trends, it can be difficult for businesses to stay in the loop. You can help with AI-based tools that analyze social media data to identify trends, predict viral content opportunities and suggest brand positioning. 

Beyond that, you can help companies level up their social media advertising by using AI to decide the appropriate messaging, ad placements and target audience. 

How can AI businesses become profitable?

Gartner expects AI software spending to increase to $297.9 billion by 2027. While this growth in the AI market leaves a lot of room for tremendous business opportunities, you’ll still need to identify a profitable, unique idea for your startup

Here are a few tips for choosing an AI small business idea with great earning potential:

  • Focus on a real problem: Instead of injecting the power of AI everywhere, use it to solve actual issues based on market research and improve the customer experience. 

  • Prioritize data quality: Base your AI software around high-quality data that yields valuable insights for users.

  • Zero in on a niche: Instead of being a generalist, focus on a specific use case and offer a tailored solution or certain niche products to sell. 

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