Artificial Intelligence (AI) refers to the capacity of machines to perform tasks that typically necessitate human intelligence, including reasoning, learning, and decision-making. Recent years have witnessed rapid advancements in AI, thanks to the availability of extensive data, robust computing resources, and breakthroughs in algorithms. AI holds the potential to revolutionize various sectors, including the dynamic and innovative startup ecosystem.

The startup ecosystem, renowned for its dynamism and innovation, is equally known for its competitiveness and risk. Startups grapple with numerous challenges, such as identifying product-market fit, validating business models, acquiring customers, securing funding, scaling operations, and outperforming rivals. These tasks demand a high level of expertise, knowledge, creativity, as well as substantial time and effort.

Nevertheless, some of these tasks can be automated or enhanced through AI technologies, thereby aiding startups in achieving higher efficiency and effectiveness. AI can also introduce novel methods for creating and delivering value to customers and stakeholders. It can be used as a tool to assist with, for example, product development, marketing, sales, customer service and cyber security.

Product Development and Marketing

Product Development and Marketing poses challenges for startups, as they must effectively reach and attract potential customers in a crowded and noisy market. The creative aspect of startups involves product development, which encompasses the creation and refinement of products or services designed to address customer problems or needs. AI can, for example, improve product quality and also forecast demand for new products. It can also be used to optimize supply chain management, inventory control and production processes.

AI can aid startups in marketing, for example, by helping startups to understand customer’s needs, matching products to customers and content personalization. Understanding customer’s needs means analyzing customer behavior or their preferences, which can aid startups to tailor their products to meet customer’s needs. When AI helps to match products to customers, it enhances the effectiveness of marketing campaigns. On the other hand, targeted advertising is a great example of content personalization.

Example AI applications: ChatGPT (content generation), Canva (graphic design)


Sales is another critical and demanding aspect for startups, involving the conversion of potential customers into paying ones. AI can interpret customer expressions, gestures, or reactions and provide suitable and persuasive images or videos for sales, such as testimonials, case studies, or presentations. It can also generate visual content or interfaces for sales, including charts, graphs, or dashboards. AI can also assist startups in analyzing customer data, history, or behavior to predict outcomes or actions based on data-driven insights or recommendations, such as lead scoring, churn prevention, or upselling.

Example AI applications: Drift (conversational marketing), Clari (sales analytics)

Customer Service

When startups grow, it is crucial to maintain efficient customer service. AI-chatbots and virtual assistants can be used to assist in routine customer inquiries. This gives human employees an opportunity to focus on more complex issues. Natural language processing allows these AI tools to understand and respond to customer queries in real-time. This can be used to enhance overall customer and user experience.

Example AI applications: Pega (chatbots), Help Scout (customer support)

Cyber Security

AI is able to analyze enormous amounts of data. There for it is suitable for tasks related to cyber security, such as

  1. Detecting actual attacks more accurately than humans, creating fewer false-positive results, and prioritizing responses based on their real-world risks;
  2. Identifying and flagging the type of suspicious emails and messages often employed in phishing campaigns;
  3. Simulating social engineering attacks, which help security teams spot potential vulnerabilities before cybercriminals exploit them; and
  4. Analyzing massive amounts of incident-related data rapidly, so that security teams can swiftly take action to contain the threat.

These elements can help startups to provide cybersecurity for their companies and possibly prevent future cyber-attacks.

Example AI applications: QRadar (threat detection), Darktrace (cyber threat intelligence)

Privacy issues related to AI

AI systems often rely on personal data. The main privacy concerns surrounding AI is the potential for data breaches and unauthorized access to personal information. When so much data is being collected and processed, there is a risk that it could fall into the wrong hands. In addition, people using the AI cannot be completely sure, how the information given to the AI is being used in the future.

Therefore, it is very important to take into account data privacy and data protection matters when using AI. One way to ensure that the personal data will not fall into wrong hands in the first place is to make sure that information is being shared according to the law.

In conclusion, AI is a game-changer for startups, offering valuable tools for product development, marketing, sales, customer service, and cyber security. As startups navigate these opportunities, it’s crucial to address privacy concerns responsibly and ensure data is handled in a legally compliant and secure manner. This combination of innovation and responsibility can help startups thrive in the dynamic and competitive business landscape.

Ready to harness the power of AI for your startup’s success? Explore the possibilities and safeguard your data privacy. Our legal experts are here to guide you on this transformative journey. Get in touch today to unlock the full potential of AI for your startup.

Send your questions our way!

Senior Associate Marko Moilanen, email: [email protected], tel: +358 40 517 0002

Legal Trainee Lauri Saarelainen, email: [email protected]