The Cost-Saving Power of AI: How Entrepreneurs Can Build Businesses with Minimal Investment

Artificial intelligence (AI) is an integral part of everyday life. This technology powers navigation apps, streaming platforms, smart assistants, and other products or services. But did you know you could use it to start a business on the cheap?

For example, you can create a website with ai website generator even if you have little or no technical know-how. Go one step further and leverage AI-powered tools to streamline core business processes like marketing, accounting, and lead generation.

Think of Amazon or eBay. These online marketplaces use AI to upsell and cross-sell products, manage their inventories, and deliver personalized ads. The result? Increased customer satisfaction, higher efficiency, and lower costs.

Some of the best AI tools are right at your fingertips. Here’s how to use them to build a business with minimal investment.

How AI Can Help Reduce Operational Costs

According to a McKinsey report, 72% of enterprises use AI in at least one business function in 2024. By comparison, only 20% of companies relied on this technology in 2017.

Most respondents (34%) said they use AI-powered tools for marketing and sales. Others are tapping into its potential to streamline product or service development, human resources, IT activities, or manufacturing processes.

Around 24% of companies saw a cost reduction of up to 10%. Another 15% reported cost savings of 10 to 20%.

Depending on your industry, you could save even more by deploying AI. Let’s say you want to start an online travel agency. Consider using AI-powered tools to:

• Build your website
• Generate images
• Streamline content creation
• Edit images and videos
• Automate social media management
• Understand your target audience
• Make personalized recommendations
• Implement a chatbot or virtual assistant

And much more.

For example, you can use AI-driven chatbots to automate customer support. This will allow you to handle customer inquiries around the clock without the need to hire more people.

What’s more, chatbots collect data from their interactions with customers. You can leverage these insights to better understand your audience and deliver personalized experiences. This aspect alone may help optimize your marketing costs.

You can also turn to AI for content creation. For instance, some AI-powered tools are capable of converting blog posts to videos and social media posts. Others can automatically schedule and publish your content across multiple platforms.

Without these tools, you’d have to hire a team of copywriters, video producers, and other professionals. But, thanks to AI, you can automate your marketing efforts and save tens of thousands of dollars in the long run.

Interested to find out more? Here are five ways AI can help reduce your startup costs.

Build a Website without Coding

A custom site can cost anywhere between $2,000 and $55,000 or higher, depending on its size and features. But if you use an AI website builder, you’ll only pay a small monthly fee.

If you go this route, you can build a site from scratch or choose a pre-built template and customize it to your liking.

For example, Wix’s AI tech can generate fully functional websites based on your input. Simply tell the AI about your preferred website layout, colors, images, and overall feel. Then let it do its magic—and watch your vision come to life.

Automate Routine Tasks

Automate data entry, lead scoring, inventory tracking, and other repetitive tasks with AI. Not only does this approach reduce costs, but it can also prevent human error and allow you to get things done faster.

For instance, AI-powered tools like BillingBee and QuickBooks can automatically generate, send, and track invoices based on predefined rules. Stampli, Yooz, and Nanonets can automate accounts payable, financial reporting, and other accounting processes.

You can also deploy AI to put your email marketing efforts on autopilot. GetResponse and other AI-driven apps can automatically send email messages when customers take specific actions, such as joining your list or placing an order.

Increase Sales

Nike and other online retailers display product recommendations based on the buyer’s location, purchase behavior, and other factors.

If, say, you check out a pink bag on Amazon, the site will show you other bags in a similar color. Or it may recommend complementary items, such as a pink wallet.

This level of personalization wouldn’t be possible without AI. As an online seller, you can use AI-driven tools to:

• Upsell higher-value products or services
• Cross-sell related items
• Employ dynamic pricing
• Display personalized offers
• Send automated abandoned cart emails

By deploying these strategies, you can improve the customer experience and sell more without spending extra on advertising. Plus, AI can personalize your offerings for specific audiences, such as repeat buyers or past customers who haven’t purchased for six or 12 months.

Optimize Ad Spend

If you plan to run pay-per-click (PPC) campaigns, consider using AI to manage and optimize ad spend.

For example, AdScale can automatically adjust your bids based on historical performance and other data-driven insights. Adalysis supports automated ad testing and can forecast future ad performance.

CHEQ Essentials and similar tools will detect and prevent click fraud so you can get the most out of your ad budget. Other AI-driven apps can generate ad copy, automate ad targeting, or split-test ads.

Such tools involve a learning curve but could save you thousands and help maximize your reach. In some cases, they can eliminate the need to hire a marketing agency or an in-house PPC specialist. 

Create SEO-Friendly Content

Every website needs content, whether we’re talking about sales copy, product descriptions, or blog posts. But to get results, it’s essential to optimize your content for users and search engines. That’s another area where AI comes in handy.

Take Grammarly, for instance. Its AI writing assistant can generate outlines, rewrite hard-to-read sentences, and identify areas for improvement. On top of that, it will check your content for typos and grammatical errors.

Another useful tool is Semrush’s SEO Writing Assistant. Powered by AI, it analyzes your copy and then makes custom recommendations in four main areas: readability, originality, tone of voice, and SEO.

You can see which sentences are too long or complex, what keywords you should be using, and whether or not your content is original.

These tools cannot replace human writers, but you’ll save time on research, editing, and proofreading. And make your content more discoverable in search results, which can lead to higher conversions.

Moving forward, assess your business needs to identify key areas where you could use AI. Choose a couple of tools that deploy this technology to automate core activities and streamline your workflows. Then compare their features and cost-saving potential to make an informed decision.