Challenges and Prospects of Startups Investing in Artificial Intelligence

Abdellah Mahdjoubi, Fouad; Abderrahmane, Djoher

دراسات اقتصادية
Volume 19, Numéro 3, Pages 206-223
2025-11-02

Challenges And Prospects Of Startups Investing In Artificial Intelligence

Authors : Abdellah Mahdjoubi Fouad . Abderrahmane Djoher .

Abstract

This study examines the challenges and opportunities for startups investing in artificial intelligence (AI). AI holds transformative potential to improve efficiency, lower costs, enhance customer experience, and support faster decision-making, making it a strategic tool for innovation. Yet adoption is constrained by limited specialized talent, high development costs, and restricted access to reliable data. Despite these barriers, key sectors such as healthcare, education, and finance provide strong opportunities for AI-driven growth. Global investment in AI exceeded $70 billion in 2019, with startups receiving a large share. Financing options include venture capital, government funding, and angel investors, reflecting global confidence in AI’s disruptive role.