How Startups Are Making AI Core to Their Strategy

AI is changing how we work, making it easier to simplify tasks, build products faster, and uncover meaningful insights that might have been missed. As technology keeps moving forward, more and more startups are embracing artificial intelligence (AI) to stay ahead of the curve.

AI is rapidly becoming an essential part of the startup playbook. This post will explore how startups put AI to work across different areas, the hurdles they’re encountering, and the powerful advantages it offers to early-stage companies looking to scale innovatively and quickly.

Sam Mallikarjunan, co-founder of OneScreen.ai and the current General Manager of Agent.ai, shared his insights with StartUp Boston on the state of AI, common uses, and set some ground rules for preserving humanity, creativity, and inclusiveness as AI continues to advance.

Startup Boston (SB): How do you see the AI space for startups today?

Sam Mallikarjunan (SM): The AI space is hugely positive for startups right now. It enables them to be competitive in ways that they hadn't been before–using things like AI to offset the capital advantages of larger companies by not having to raise as much money, or helping the money they raise go further. 

Large companies have more data but are often slow to leverage it effectively. Using AI to analyze and utilize their data more efficiently, startups can gain a competitive advantage.

Data-rich startups may become acquisition targets for larger companies looking to enhance their AI capabilities. 

With technology and AI advancements coming at such rapid paces, it’s crucial to maintain a human element, especially involving things like customer interactions. Utilizing a hybrid approach combining human and AI elements will lead to better outcomes than either of these individually.

SB: Are there areas where we need to temper our expectations with AI?

SM: Not having some level of AI strategy is an irreparable strategic disadvantage, like not having a website for your startup. Whenever people talk about letting AI write and ship all their code, I have nightmares. That may be the beginning of a wildly insecure internet if we take humans out of the loop just because we can. If we don't have the judgment that's required to make the system secure, that can lead to disaster. 

Some level of oversight is required with these systems, especially from a security standpoint, as there is a unique human element, mindset, and culture that informs good judgment. These are things we can’t, or shouldn’t, swap out with AI. Nobody feels bad ignoring the AI telling them to do things. People do feel bad ignoring people that tell them “no”, and that is something we should maintain.

SB: Which areas have seen the best ROI with AI?

SM: AI can help startups expand into new markets by overcoming language and cultural barriers, enabling them to compete more effectively in global markets. It should not replace human services, but augment them to improve customer experience and conversion rates. With AI, human communication can improve by providing feedback and suggestions for better expression.

Startups should invest in using AI to enhance their customer service, improve consultative sales processes, drive revenue growth, and support storytelling and creativity in marketing. 

SB: What resources do you leverage to stay up to date with the break-neck pace of the AI world?

SM: There are a lot of communities and discussions around AI news that are valuable for staying informed. Agent.ai is one of them! We publish articles there that cover AI fundamentals in an accessible, jargon-free way, so AI seems less confusing and scary to people that may just be getting started. I also recommend podcasts like the AI Daily Brief and AI for That for keeping up with AI developments.

I’ve also built and used AI agents to synthesize and summarize information. I encourage this the most as it helps manage the fast pace of AI advancements.

SB: What is your best AI-pun?

SM: 'Why did the AI have to go to therapy? Because it was neurotic.'

AI is no longer a futuristic concept, it’s a practical tool that startups are using right now to solve real problems, stretch limited resources, and scale with speed and intelligence. As Sam Mallikarjunan reminds us, the key to using AI effectively is balance: lean into the possibilities, but don’t lose sight of the human touch that fuels innovation, empathy, and trust.

Whether you're using AI to break into global markets, refine your sales strategy, or simply automate everyday tasks, it’s clear that startups that thoughtfully integrate AI into their operations are better positioned to adapt, compete, and grow. The future of startup success isn’t AI versus humans - it’s AI with humans.

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About the author: Joe D'Agostino is a startup founder, developer, advisor, and active security practitioner. Today, he manages the product and application security team at an AI startup in Boston, MA. When he is not securing or building products, he enjoys spending time with his wife, their newborn daughter, and their dog, Josie.