Startups embracing artificial intelligence (AI) as a component of their business models are quickly emerging right now. The application of AI technology in business has been going on for a while, even though recent research reveals that new or alternative business models are being implemented.It might be claimed that AI technology has been used to business models for a very long time, which puts into question the uniqueness of these business models. In order to better understand how AI companies' business models may differ from traditional IT business models, this study compares them to each other. The first step is to create a taxonomy of business models for AI businesses using a sample of 162 Worldwide Stratup, from which four archetypal business models are derived: Deep technology researcher, data analytics supplier, AI product and service provider, and facilitator of AI development The following are three main elements of startup business models for AI firms that are discussed based on this descriptive analysis: (1) new value propositions made possible by AI, (2) Various uses of data to create value and (3) How AI technology affects general business reasoning. By defining their key purposes, common instantiations, and distinguishing features, this research adds to our fundamental understanding of the AI start-up business model. This study suggests intriguing directions for further investigation in the field of entrepreneurship. À It is structured to foster entrepreneurial activity. Taxonomies and models are actually instrument.
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