How to start an AI business

Why AI is changing everything

AI is not just another wave of innovation - it's a tsunami. Its ability to learn, adapt, and improve over time makes it different from other technologies. It removes repetitive tasks, speeds up decision-making, and makes personalisation scalable.

In simple terms, AI enables businesses to do more with less. Automating everything from customer support and fraud detection to creative content generation and financial forecasting is possible with the right model and data. And these aren't just theoretical use cases - they're real-world applications already being used today.

Big companies aren't the only ones benefiting. Small business owners, consultants, and freelancers use AI tools to compete against incumbents and deliver more innovative, faster services. That's why now is the perfect time to launch an AI business.

What skills do you need to start in AI?

You don't need a PhD in computer science to start an AI business, but understanding the basics helps. At a minimum, I found it helpful to get familiar with these areas:

• Problem-solving mindset: AI is a tool, not the solution. First, I needed to identify a real-world problem, then work out how AI could solve it better or faster.
• Data literacy: AI thrives on data. It is essential to understand where to find good data, how to clean it, and how to interpret results.
• Basic programming skills: Python is widely used in AI development. Even if I didn't plan to write the core models myself, knowing how APIs work and how to manipulate code gave me a big advantage.
• AI model knowledge: Knowing the difference between supervised and unsupervised learning, or how large language models work, helped me spot opportunities that others missed.
• Business and marketing skills: Like any business, knowing how to find customers, deliver value, and make money is key. AI doesn't sell itself.

If you're not technical, that's okay. Many successful AI founders hire a technical co-founder or build with no-code/low-code platforms, allowing them to plug into existing AI tools.

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Top business ideas for AI startups

There are countless ways to apply AI. These are some of the most promising business ideas I've come across:

• AI writing assistants: Tools that help small business owners create content for websites, emails, and social media in seconds.
• Customer support automation: Chatbots and AI-powered help desks that resolve customer queries around the clock.
• AI bookkeeping and accounting: Like what Thriday does - using AI to automatically categorise expenses, generate tax reports, and help business owners stay compliant.
• Sales prospecting tools: AI systems that scan the internet to find ideal leads and craft personalised outreach emails.
• Healthcare diagnostics: Tools that assist doctors by accurately analysing medical scans, patient histories, or symptoms.
• Real estate intelligence: AI platforms that help buyers, sellers, and investors find high-performing properties.
• Legal AI tools: Software that drafts contracts, analyses legal documents, and flags compliance risks.
• Education and tutoring: Personalised AI tutors that adapt to a student's learning style and speed.

The opportunities are endless, but the key is to narrow in on a niche that has a genuine problem AI can solve better than existing solutions.

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Step-by-step guide on starting an AI business

Launching an AI business requires the same discipline and focus as any startup, plus a little extra care around technology and ethics. Here's how I went about it:

1. Identify a real-world problem

I started by observing areas where people waste time, make frequent mistakes, or feel frustrated. Then I asked, "Can AI fix this?" It's tempting to build something because it's technically impressive, but real success comes from solving a pain point people will pay to fix.

2. Validate the idea

Before writing a line of code, I spoke to potential users. To test demand, I created a landing page, a short video demo, and a pitch deck. If no one showed interest, I moved on. AI is too resource-intensive to build in a vacuum.

3. Choose the right tech

Some problems require complex machine learning models, while others can be solved with off-the-shelf APIs from OpenAI, Google, or Hugging Face. I chose tools that allowed me to move fast and iterate without burning cash.

4. Build a minimum viable product (MVP)

My first version did one thing well. It didn't need to be perfect or beautiful - it just needed to prove the concept. I used low-code platforms where possible and plugged into APIs for language generation or image recognition.

5. Get feedback and iterate

Early users gave me the insights I needed to improve the product. I kept asking, "Does this save you time or money? Would you pay for it?" The answers helped me refine the product and set a fair price.

6. Launch and market

Once the MVP delivered value, I focused on growth. That included content marketing, partnerships, and targeted ads. For AI businesses, it's essential to show real-world results and build trust with users who may be new to this kind of tech.

7. Think about ethics and bias

AI can amplify biases if it's not trained responsibly. I ensured the data I used was clean, diverse, and respectful of privacy. Transparency builds credibility, especially in finance, health, or law industries.

8. Set up your operations

Even AI startups need the basics: a business structure, a bank account, bookkeeping, and tax compliance. That’s where a tool like Thriday makes life easier. I didn’t want to waste time on admin when I could focus on building and selling.

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How Thriday uses AI

I was lucky to start Thriday at a time when AI was becoming more powerful every day. I have seen firsthand how AI can transform a business. Thriday is an all-in-one financial management platform that automates banking, accounting, and tax. At the core of Thriday's platform is an AI engine that removes the need for spreadsheets, receipts, and even an accountant in many cases.

Here's how Thriday uses AI to make life easier for small business owners:

• Automatic transaction categorisation: The AI reviews banking activity and instantly tags each transaction into the correct category, removing manual data entry.
• Predictive tax calculation: Thriday estimates upcoming BAS or tax obligations based on real-time income and expenses.
• Smart invoicing: The platform can automatically suggest invoice amounts, detect overdue payments, and even issue reminders.
• Receipt and bill scanning: AI matches bank transactions to bills and receipts, removing the need for traditional bookkeeping.
• Cash flow forecasting: AI models predict future cash trends based on historic patterns, helping business owners make better financial decisions.

It's like having a full-time bookkeeper, accountant, and finance assistant working 24/7 - without the annoying clarifications. This kind of automation lets small business owners focus on what matters: serving customers and growing revenue.

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Final thoughts

AI is no longer just for massive tech companies. With the rise of APIs, open-source models, and no-code platforms, anyone can start building AI products that solve meaningful problems. The best part is that AI can also help automate parts of your own business, from accounting to customer service.

If you're considering launching an AI startup, my advice is simple: focus on a real problem, start small, and build something people love. AI gives you leverage - but it's still the quality of your idea, your execution, and your understanding of customers that determines your success.

And if you need a smart way to manage your finances while you build, give Thriday a try. It's built with AI from the ground up to save you time, reduce stress, and help you succeed faster.