In a sign of rapid technological transformation across India’s entrepreneurial ecosystem, over 70% of Indian startups are actively integrating artificial intelligence (AI) into their core business functions, according to Meta's latest “India’s Startups and AI” report. The findings point to a growing reliance on AI to drive innovation, improve customer experiences, and optimize operations across sectors ranging from fintech and healthtech to e-commerce and logistics.

Released in collaboration with Bain & Company, the report highlights India’s position as a fast-adapting digital economy, where AI is no longer viewed as an experimental add-on but as a central strategic asset for growth and competitiveness.

AI as a Core Enabler

According to the study, startups are deploying AI across a range of functions—including personalized marketing, sales automation, product recommendation engines, fraud detection, and supply chain optimization. Approximately 75% of surveyed startups reported using AI for customer relationship management and marketing, while nearly 60% cited its importance in product development.

"This report underscores how Indian startups are leading in AI adoption, not just in experiments, but across their most critical operations," said Sandhya Devanathan, Vice President at Meta India. “AI is enabling startups to scale faster and offer more personalized, seamless experiences to customers.”

Notably, AI-powered automation is increasingly helping startups unlock operational efficiencies at scale. For instance, AI is being used to automate customer service via chatbots, optimize delivery routes in real time, and personalize digital storefronts based on user behavior and preferences.

Growing Momentum Amid Evolving Challenges

India is home to over 90,000 startups, with many in the early- and growth-stage phases. The report finds that while adoption is widespread, certain challenges persist—including the availability of high-quality AI talent, access to scalable infrastructure, and managing ethical or regulatory concerns around data use.

Despite these barriers, nearly 80% of startups surveyed believe AI will be critical to their business strategy over the next two years. This growing momentum aligns with the broader global trend of AI becoming a foundational layer across digital businesses.

Meta’s report also indicates that nearly 40% of AI-integrated startups are already seeing measurable improvements in business performance, including higher customer retention, faster time-to-market, and better decision-making based on predictive analytics.

Cross-Border Aspirations and Global Readiness

The integration of AI is also enabling Indian startups to think beyond domestic markets. Around 45% of startups that are actively using AI tools said they are building products with a global audience in mind. Many see AI as a competitive equalizer—especially in global software, SaaS, and direct-to-consumer categories.

Meta’s report notes that omnichannel capabilities—such as the use of AI-driven ad tech, commerce tools, and analytics—are helping startups refine their customer engagement strategies across digital touchpoints. With AI simplifying localization, content creation, and customer segmentation, Indian companies are increasingly confident about launching in international markets.

Enabling the Ecosystem

To support this ongoing evolution, Meta says it will continue to invest in building tools and infrastructure that can accelerate AI adoption among startups. The company recently expanded its support for AI training programs, hackathons, and developer support in India through Meta’s Startup Hub.

Meanwhile, industry stakeholders are calling for greater collaboration between government, academia, and the private sector to foster AI research, improve access to cloud infrastructure, and create policy frameworks that support ethical and responsible use of AI.

Outlook

India's startup ecosystem appears well-positioned to lead the next phase of AI-driven innovation, with early signs indicating that startups are not only adopting AI but also shaping its application across industries. As more companies move from pilot programs to full-scale deployment, AI is expected to become a defining factor in how Indian startups grow, compete, and expand globally.

With AI now embedded into the strategic core of business operations, India's digital future is rapidly becoming AI-native—offering new opportunities for efficiency, scalability, and impact across the board.