From AI to Sustainability — Exploring the Potential Future of Tech Startups

43% of Americans planned to start a business in 2022, with one-third being first time entrepreneurs, according to one survey from Digital.com. While many are keen to embark on a new business endeavor, however, those looking to launch a tech startup should take predictions regarding the industry into consideration — especially when it comes to the transformative nature of technology. From the value of artificial intelligence to how the climate fits in, here’s what you should know regarding the potential future of technology-focused startups.

Where Artificial Intelligence (AI) Fits In

When it comes to AI, Over 50% of organizations are planning to incorporate the use of AI and automation technologies in 2023, highlighting the traction that the tech is already gaining. The Forbes article goes on to cite a survey of Global 500 companies, which found that leaders choosing to invest in AI and automation business tools and software solutions “expect to see significant growth within the next few years.”

Amir Khan, a deep tech investor makes bold predictions regarding AI. “By 2030, I think there will be a significant increase in the development of artificial intelligence (AI) and machine learning (ML) technologies in the commercial sector,” Khan states, going on to highlight notable advancements such as the rise of Natural Language Processing technologies (such as OpenAI’s ChatGPT). Khan also highlights three AI tech startups which he believes have the potential to be the decacorns (a company valued over $100 billion) of the decade. These three startups include Motional, a Boston-based autonomous tech startup that is running the world’s first robotaxi pilot program; Owkin, a health tech startup based in France that is working to build an AI model in partnerships with top academic researchers and data scientists; and Nexar, a New York-based startup that is a leader in the dash cam market.

One LinkedIn article goes further into depth regarding the rise of artificial intelligence in tech startups, noting that the technology is transforming the way we live and work across different sectors. “One of the main benefits of AI is its ability to process vast amounts of data at lightning-fast speeds,” states the post, which points out several examples of different startups that are already leveraging AI in various ways. For instance, it’s noted that while healthcare startup Babylon Health uses AI to provide virtual healthcare service, the startup Scale AI is using AI to automate the data labeling process (thus making it faster and more accurate than doing so manually). The LinkedIn article later goes on to predict: “As the technology continues to evolve, we can expect to see more startups using AI to solve complex problems and create new opportunities for growth.”

The Rise of Climate Tech

In regard to predictions for the year 2023, one Forbes post published in late 2022, highlights the potential for sustainability and climate tech. “As tech and crypto retrench amidst the economic downturn, climate tech investing will emerge as a relatively predictable safe haven for entrepreneurs, tech refugees, and investors,” according to Abe Yokell, co-founder and managing partner, Congruent Ventures. The article also quotes Hampus Jakobsson, general partner of Pale Blue Dot, who notes that more companies will come to the realization that climate tech isn’t just ‘carbon tech.’ “It also means doing things that are ‘future compatible,’ such as using EVs, optimizing energy-intense processes, and making supply chains more transparent.”

For tech startups going forward, becoming more sustainable is certainly a trend worth keeping in mind. A separate Forbes post, which showcases eight trends for startups to watch, also underlines the value of sustainability. In fact, it’s stated that all startups should be “weaving sustainability into every aspect of their businesses, including products, services, and processes.” From reducing waste to introducing energy-efficient practices, there are a myriad of routes that a startup can take when jumping into this trend.

Embarking on Your Own Startup Endeavor

For those looking to embrace the future of tech startups by starting a business, Regarding tech startups, AllBusiness.com states “Tech startups focus on creating a product built on technological and innovative foundations. Therefore, your passion and enthusiasm for building something play a major role in the success of the startup.” With that in mind, it’s necessary to take into account the fact that developing a comprehensive business plan can make for a fantastic start. From financial projections to short/long term objectives, industry research, etc., a business plan serves as a way to solidify your goals while laying down the foundation for your startup as a whole.

In addition to the many aspects of launching your own startup, it’s imperative to not overlook the importance of other business decisions, such as choosing the right legal structure for your startup and choosing the right services to use when officially forming a business. For those who are considering the formation of a limited liability company (LLC), getting a full understanding of your options regarding formation services is essential in ensuring that you’re getting what you need for a good price. With a variety of companies offering such services, such as Rocket Lawyer, ZenBusiness, and LegalZoom, doing your research can help when deciding which to go with. Legalzoom LLC reviews, for instance, highlights everything from what’s involved with the formation process to forms, customer support, prices, and packages.

Forming a successful tech startup is a dream for many, though it’s imperative to keep in mind the role that technological advancements play — especially when it comes to the future. From the innovations surrounding AI to the value of sustainability, knowing how such advancements are transforming the world can allow for launching a startup that aligns with the future in an informed way.