Over 70% of Indian startups use AI for core operations, says Meta report

New Delhi:  Around 70% of Indian startups have begun using artificial intelligence (AI) for core business functions, according to the Meta Emerging Businesses Report released on Friday. The report, prepared in collaboration with professional services firm Alvarez & Marsal India, is based on a survey of 100 high-growth startups across the country.

The report notes that over 70% of the surveyed startups are integrating AI into their business operations. Within marketing functions, 87 % of AI adopters reported approximately 30 % improvement in cost per acquisition (CPA). Industries such as healthcare, edtech, and beauty were identified as leading in AI maturity, particularly in their use of automation for customer service, predictive analytics, and personalisation.

The study also highlighted that 95 % of the startups surveyed have expanded their operations into tier-2 and tier-3 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 stated.

In addition to domestic expansion, the report found that 52 % of startups are pursuing cross-border growth, motivated by the opportunity to tap into larger total addressable markets and a growing global interest in Indian-origin products and services.

The United States, the United Arab Emirates, and the United Kingdom emerged as the top export destinations for these startups, according to the findings.