Sean Ammirati, a professor at Carnegie Mellon University, has noticed a significant shift in the progress of his entrepreneurship students. Over the past decade, Ammirati has guided graduate students in launching startups, but this year, their advancements were notably faster. The key difference? He encouraged them to use generative AI as a “co-founder.”
Students utilized tools like ChatGPT, GitHub Copilot, and FlowiseAI for various tasks, from marketing to coding. By the end of the semester, venture capitalists were flocking to Carnegie Mellon, impressed by the rapid development.
Ammirati likened the impact of generative AI to the transformative effect of cloud and mobile technologies in the mid-2000s. While the full economic impact of AI is still unfolding, many entrepreneurs are already experiencing its benefits. AI helps with coding, legal document interpretation, social media management, and more, allowing startups to launch and scale more quickly and efficiently.
Steven Bright, founder of Skittenz, a company specializing in colorful glove coverings, credits AI tools for his startup’s progress. Initially using ChatGPT for basic queries, he soon relied on it for complex tasks like customer surveys and legal document translation, reducing his need for costly expert consultations.
Research indicates that generative AI is particularly appealing to young firms due to its low cost and versatility. A recent National Bureau of Economic Research paper highlighted that newer businesses are more inclined to experiment with AI, and platforms like Gusto found that around 20% of startups from last year use AI for tasks such as market research and bookkeeping.
Entrepreneur Jamie Steven used AI tools like ChatGPT and GitHub Copilot to expedite the development of his app, Orb.net, raising $700,000 from angel investors in the process. He believes that AI significantly accelerated his path to scaling his business.
The rise of AI-related startups is also notable, with significant investment pouring into AI ventures. Erik Noyes, an entrepreneurship professor at Babson College, views AI as a cost-effective way for founders to amplify their capabilities. Similarly, E. Darren Liddell, founder of My Money Story, found that AI improved efficiency in his financial coaching startup, allowing him to match users without additional hires.
Overall, AI is proving to be a game changer for startups, enhancing productivity and innovation. The technology’s continued development may lead to even greater impacts on the entrepreneurial landscape.