AI Business – Artificial Intllengce (AI) is the talk of the town today. AI will take millions of people’s jobs in a very short span. We are entering a replace or get replaced AI era. You must agree with me that AI has shifted the landscape of how businesses operate. This is mainly due to Open AI’s API. But, if you are starting an AI business or something around AI, you need not worry.
In this post series, I will share complete detail about starting your first AI business from ideation to execution.
So instead of giving you a fish and feeding you for the day by just giving you a list of business ideas today, I’m going to be teaching you how to fish means how to find the business that’s right for you.
How to choose the right AI business?
#1 Find out which business to Start
The first step here is ideation. You need to find out which AI business to start. For this, you need to know the unique advantages of the business idea you are selecting.
For example, AI-based copywriting is one business idea. Now if you are planning to start this business, you need to find out AI tool that can generate unique and useful AI copy or not. You also need to find out whether people will purchase services for AI-based copy or not.
You also need to make sure that other people can not replicate your business easily. You need to have the unique advantage of starting that business.
Initially, you should have three things – Network, Skills & Knowledge. You should be connected with related people or industry experts so that you can do pilot testing of your idea. Now, you also need to have skills or the ability to develop the same. If you don’t have hard skills you are not ready to start a business. Because it’s going to be either expensive to hire all the people with the right skills. The third important thing is knowledge about the real problem that can be solved using open AI or GPT3.
#2 Find High Leverage Opportunity
The second thing to consider when choosing which product to sell or which Market to compete in is how high Leverage is the opportunity.
So we’re going to go back to the chat GPT copywriting business as an example. This is a low-leverage opportunity because you still have to hop on sales calls to close clients. It is very manual. You have to hire writers even though they’ll use AI you still need to compensate people and then you have to train them which again takes time. Whereas a software tool for example may take more time upfront to make but once you have a good product made you only have to make it once. That product will solve millions of people’s problems without any more work and your only constraint is the size of the market.
So low Leverage is an opportunity that you have to continue to do work time and time again to solve the problem whereas with high leverage you can make the product once and sell it a million times.
So it’s really important to spend a little extra time thinking about how high leverage your opportunity is instead of just choosing the easiest fastest one to start.
#3 Find AI Business with High Entry Barrier
The next thing you need to consider is how competitive will the Market be. In the business, there is an important term called barrier to entry meaning factors that can prevent or impede newcomers into a market or reduce competition.
For example, the copywriting business has a very low barrier to entry. Anyone can use copy AI to make content therefore the barrier to entry is very low and the market will be very competitive. So, it will be hard to get clients since so many of your competitors offer the same service as you. It’s going to be hard to stand out.
On the other hand, a software company has a higher barrier to entry because you need to have a unique idea you need to hire developers and then you have to make the product. So after finding AI business idea if you do figure out how to hire a developer and get the product made that means it’s going to be a lot easier for you to sell and ultimately scale the product.
So basically you need to choose your hard path. A low barrier to entry is easy to start a business but hard to grow or a High barrier entry business is harder to start but easier to grow.
Let me share some examples of medium to high barriers to entry and High leverage opportunities.
AI Business Ideas
#1 Namelix
Namelix is AI Based business name generator tool. Namelix generates short, catchy names with a state-of-the-art language model. You just need to put keywords and describe your business and you will get multiple creative options on the screen.
It offers customized branding options of font colors and logo and once you are done you can pay $65 and download the Logo, business card design, social media graphic, presentation design, and letterhead design for your business. This is a smart AI business. People search for free names and get design work ready.
#2 Tweet Hunter
Tweet Hunter is a simple but unique product. Tweet hunter has a viral tweet library. This tool allows you to Predict your tweet’s performance before it’s published. This tool helps you to write 100 high-quality tweets in less than 1 hour.
All these tweets are powered by AI and are expected to engage and reach more as it is researched and based on a powerful tweet library. It offers content creation, Scheduling & automation, Twitter CRM, and analytics. If people are getting more business by grabbing attention on social media they will be paying money like anything.
#3 AI-based Newspaper Search Engine
AI-based Newspaper Search Engine is an idea where a mobile app accepts the name of the newspaper and read the latest news in the local language. Not only that it searches the specific news and gets you results. This idea is still not yet implemented but is in the ideation stage.
Over to you
So answer to – What AI business to start? is if you have a problem in your day-to-day life that you’re facing you create a tool that you would use to solve that problem. You just need to offer that solution to other people that probably have a similar problem before a price that is the best way to identify which AI business is right for you.
