Building an AI company in 2025
Building an AI company in 2025
Anything “AI” rings a different bell since after chatGPT launched publicly.
In this article, I explore various aspects of building an AI company when AI is pretty much available on tap. This is my experience and not advice to build an AI company! :)
What is easier? Prototyping is now relatively easier than in 2022 or before. And it will get much easier. With so many AI assisted coding tools available, prorotyping for businesses looking to employ AI, and for people looking to start an AI company - Especially for consumer focused ideas where integration is expected with the easily available stack. So if you are starting an AI company, building a product will be relatively easier, once you have clarity on the user needs. Just as with any business idea, domain knowledge will play a critical role. In fact, domain knowledge will play a more critical role than earlier, because access to technology is much easier.
What gets more difficult? Getting customers gets harder. Especially if you are targeting lower order value or consumer space, then the competition is tougher than before. For B2B, where domain knowledge, integrations are a big advantage, your ready product will have a lot of advantage over the ones which do not have anything available.
Who do you compete with? AI is a way of solving problems. AI companies will still compete with companies that promise similar outcomes to the consumers. Outcomes can be generated with human resources or with technology (AI + Software), or with the combination of the two. However,
Do you need venture capital to build an AI company?
Venture capital will be needed for consumer focused AI companies, and a significant portion of it will be spent in marketing - to stand out from the competition. The second spend will be spent in operating with speed - building all the list of features that are needed to stay ahead of the competition. The third will be technology spend, to suypport building and running of R&D and the product itself.
For B2B products, capital will be primarily needed for product development and sales.
That said, if one is looking to start an AI company, there could’nt be a better time – so many problems to solve and so much one can do! :)
