The startup cycle can be uniquely challenging. Just when you’re finally starting to gain ground, you realize you need to grow your operation to handle the mounting demand. In one sense, it’s a good problem to have. In another sense, it’s a problem that can become costly and corrosive if you don’t take your next steps thoughtfully.

Obviously, growth means something very different for every business. It can mean adding new physical locations, onboarding new teams or expanding your geographical reach. Whatever it means for your business, though, it’s only natural to look toward AI tools as a way to help boost that growth.

AI Business Solutions For Startup Scalability

Are AI business solutions the secret to startup growth? The answer: perhaps. But of course, investing in any new technology comes with costs and risks. That’s why I prefer to think of AI business solutions as the secret to startup scalability, rather than growth. There are ways to enjoy the rewards of AI advancement without taking on the risk.

More on that in a moment. First, let’s take a quick look at just how rapidly AI business solutions have permeated our working economy.

The Surging Wave Of AI Adoption

Stanford University’s Human-Centered Artificial Intelligence department points out that most businesses are already leveraging some form of AI, with 78% of organizations using AI solutions in 2024. This was up from 55% in the year before.

According to the same index, businesses that have adopted AI report a boost in productivity. AI solutions have proven extremely effective at narrowing skill gaps in numerous different areas of a workforce. The value of these outcomes can’t be overstated for startup companies that are just on the threshold of meaningful growth.

The right AI solutions can be force multipliers for your expanding operation; there are now tools that, among other things, can automate repetitive administrative tasks, field customer service demands and draw analytical insights from vast amounts of data.

In many cases, these are tasks that would take human beings countless hours to complete, usually at the expense of more meaningful core business activities. In the case of big data analysis, some of what AI can do is simply beyond our human capabilities.

The Catch: AI Isn’t Always The Shortcut It Seems

So adopting AI tools to boost your startup is a great idea, right? Well, not so fast. It really depends. The Wall Street Journal recently reported an unexpected development. For years, analysts have predicted that rapid advances in technology would make AI solutions more accessible and affordable to small businesses and startups. On the one hand, it’s absolutely true that AI solutions are becoming more accessible to businesses in every stage of development.

However, according to the article, this technology is not necessarily becoming more affordable. To the contrary, the Journal reports that the newest AI models are engaged in processes that require more “thinking” such as deep research and coding. The price for a unit of AI (known as a token) is going down. But the number of tokens actually needed to accomplish these complex tasks is “skyrocketing.”

As accessible, visible and powerful as these AI tools are becoming, the price tag for internal adoption is only going up. If you’re thinking of AI as a cheap workaround for business growth, think again.

Risky Business

AI does have the potential to change the game for your startup. But the risks of internal implementation are considerable. Even with the right AI tools, the process of integrating new technology with your current operation can be costly and disruptive. And if you’ve invested in the wrong tools? The cost of that mistake can be massive.

A recent Fortune survey reveals that 42% of responding companies had abandoned most or all of their in-house AI initiatives in the first half of 2025. That is an extremely high failure rate, and perhaps it’s the kind of risk that a large, well-funded and fully established company can absorb on the path to further growth. But few startups have that kind of runway.

Putting A Thumb On The Scale

So if AI tools aren’t a workaround for startup growth, then what are they? They are a pathway to scalability. But what’s the difference between growth and scalability? In the simplest terms:

• Growth: This is what happens when you increase your company’s revenue, a process which usually requires you to endure a proportional increase in expenses like space, inventory and/or people.

• Scalability: This is what happens when you find ways to increase your revenue without a proportional increase in what you’re spending.

In other words, growth is all about getting bigger, while scalability is about getting bigger and more efficient. Naturally, the latter offers much better profit margins than the former.

Bringing It Back To AI

The risk of internal implementation is even greater than just the cost and disruption. Even if the technology works properly, it may be a heavy financial burden during an economic slowdown. And there is always a danger that your shiny new system is quickly outdated by the next leap forward in AI technology.

For many startups, I think the real workaround is an investment in strong partnerships. Building relationships with trustworthy providers can create immediate access to AI solutions as well as people who know how to leverage these tools without the costly burden of internal implementation. This approach gives you access to a knowledgeable partner to turn to as technology advances and an easy lever to pull whenever your business needs to scale back on expenses.

Aligning with an experienced tech provider lets you make the most of the latest and greatest in AI developments without putting everything else you’ve built on the line. With that type of access and flexibility, scalability is sure to follow.

See full article on Forbes here