A clear majority of start-ups are already using – and paying for – artificial intelligence.
Austin, Tex.-based Kruze Consulting is out with a new study showing U.S. start-up businesses are aggressively latching onto artificial intelligence tools – especially Open AI.
“In the rapidly evolving landscape of technology, startups are increasingly turning to artificial intelligence to gain a competitive edge,” the accounting and finance services firm in a December 4th statement. “The adoption of the market leader, OpenAI, into the Kruze client base has been nothing short of amazing. It’s emerging as a tool used by hundreds and hundreds of our clients for a variety of purposes.”
All told, 57% of Kruze’s client base (representing some 800 clients) are currently paying for Open AI services. That’s significantly up from the single-digit numbers Kruze saw in 2022, the company reports.
“When OpenAI introduced its paying plans early in 2023, the growth of paid clients skyrocketed,” Kruze added. “This is one of the fastest, if not the fastest, penetration that we’ve ever seen of any tool into the client base.”
Four Uses
Kruze says there are “four key ways” start-up companies, in particular, are leveraging Open AI, based on interviews with company clients.
Subscription-based. Startups are leveraging OpenAI’s $20 per month subscription for various operational tasks.
“These include writing marketing copy, assisting in light coding, Excel modeling, and image generation,” Kruze notes. “This versatile application signifies OpenAI’s role in offering cost-effective and efficient solutions for diverse business needs.”
For data processing. OpenAI’s API is being utilized by startups for converting and organizing data.
“This application is crucial in improving data management processes, enhancing accuracy, and enabling data-driven decision-making,” Kruze reports. “These users sometimes ramp up and then drop billing, as once they get their data into shape they don’t need as much API usage. However, others use a consistent amount of data, as the data processing is core to keeping their service running.”
As integration in products. Incorporating OpenAI’s API into products allows startups to enhance their offerings.
“Features such as chatbots or personalized content generation are becoming increasingly common, providing a competitive edge in the market,” the company adds. “Others use it to power the creation of art or text. These are important use cases, as they let the startup offer a genuine AI feature or product.”
For custom training. A more advanced use of OpenAI is seen where startups use the API to train their own AI models, tailored to their specific needs, Kruze concludes.
“This approach indicates a shift towards customized AI solutions, demonstrating the evolving sophistication in startup tech strategies,” the company says. “We assume that these startups will ramp down their use of OpenAI instead of their own once the products are created.”
Kruze vice president of financial strategy Healy Jones calls his company’s canvassing of client Open AI impressive, from an outcome point of view.
“This is the steepest adoption curve that I’ve ever seen — over half of our client base using a new technology in a very short period,” Jones noted. “I’m pretty blown away.”
Startups are going way beyond leveraging AI for automation (that’s typical for start-ups) but are integrating the technology into the core of their business operations and products, Jones adds.
“As the reliance on tools like OpenAI continues to grow, it’s likely to lead to more advanced and efficient business practices in the startup ecosystem,” he says.
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.
