VC investors take leading role in guiding startups through AI disruption

As artificial intelligence (AI) becomes a central driver of innovation, venture capital (VC) investors are stepping up to help portfolio companies navigate the complexities of AI adoption. From advising on strategic integrations to connecting with top-tier AI talent, VCs are offering more than just capital; they are providing the guidance and resources needed to harness AI’s full potential.

 

Experts said the rapid rise of AI tools like ChatGPT, DeepSeek, and Qwen 2.5 has left many startups scrambling to keep up as the pace of disruption accelerates.

 

“AI is evolving at such an unprecedented pace—what was relevant yesterday may be outdated tomorrow. Given this rapid evolution, the best strategy is to focus on what will remain constant: the need for adaptability,” said Preeti Sampat, partner, Eximius Ventures, a leading VC firm that backs companies across fintech, software-as-a-service (SaaS), frontier tech, and consumer tech.

 

 

Sampat said most Indian software companies operate in the application layer rather than the infrastructure layer, unlike China, which has made significant strides in foundational AI models like DeepSeek and Qwen. To stay ahead, she said Indian companies must design flexible architectures that can seamlessly integrate multiple AI models as technology advances.

 

“This is particularly critical now, as the cost of AI is decreasing, making intelligent software development more accessible,” said Sampat. “By maintaining adaptability and focusing on customer needs, application-layer companies can capitalise on these advancements.”

 

When asked how Eximius is supporting its portfolio companies in adopting an AI strategy, Sampat pointed out that it is about enhancing existing software solutions by layering AI capabilities on top to improve functionality. The other aspect is developing AI-native modules, which can be built in a modular fashion. These modules can vary in automation levels, ranging from fully automated to human-in-the-loop systems.

 

“The key is to identify where AI can provide the most value and implement it strategically, ensuring that it enhances efficiency, automation, and user experience in a meaningful way,” said Sampat.

 

For instance, one of Eximius’ portfolio companies, DecoverAI, is transforming the legal tech space by automating legal service providers (LSPs) in the litigation sector, a trillion-dollar market. DecoverAI focuses on litigation support, making legal workflows more efficient through AI-driven copilots and autonomous agents. Initially, they built copilots to assist lawyers in case preparation and real-time courtroom support. However, with the rise of AI agents, they are now incorporating autonomous workflows that can handle certain tasks independently.

 

“This balance between AI-assisted and AI-driven automation not only enhances efficiency but also reduces costs, making DecoverAI a standout player in legal AI,” said Sampat.

 

AI adoption must be strategic

 

Anil Joshi, managing partner at Unicorn India Ventures, believes AI may not be applicable as it is to all businesses. However, he said Unicorn India actively evaluates the potential impact of AI on respective businesses and accordingly advises companies on their AI goals.

 

This includes firms using AI for internal operations to gain an edge over competitors. The other goal is making product offerings AI-compatible so that customers can benefit from cutting-edge solutions.

 

One of Unicorn India’s portfolio firms, Genrobotic, recently worked on a robo-arm leveraging AI. It is helping eliminate risks to humans in difficult tasks while improving productivity.

 

Joshi said having an AI strategy is crucial, as it involves engaging quality resources for building AI solutions, which is expensive. He also stressed the importance of continuously monitoring and evaluating AI’s impact. Otherwise, companies may end up spending excessive man-hours and resources on solutions that lack practical use cases.

 

“Timely intervention will certainly help companies build the right solutions needed by customers,” said Joshi. “We strongly encourage companies to build in-house AI capabilities or intellectual property. It will certainly help in keeping pace with changes in the tech space.”

 

AI specialists: A necessity or an option?

 

Sonal Saldanha, vice president for investments at 3one4, said his firm insists that companies experiment with and embrace new AI tools with urgency—not just for marketing.

 

“Because we’re seeing so many real-world examples of impact,” said Saldanha.

 

3one4 counts fresh meat and seafood delivery startup Licious, shared electric vehicle mobility company Yulu, and Ayurvedic consumer products firm Kapiva among its portfolio companies.

 

As far as building AI-enabled products is concerned, Saldanha said teams at various companies already have too much on their plates. Using closed-source foundational model APIs (application programming interfaces) is often the easiest way to get started. Moving to self-hosting open-source models, which provide more flexibility but require greater technical expertise, can be adopted later in the product’s life cycle.

 

“When it comes to consuming AI products internally, again, the best product wins. Building and maintaining a home-grown implementation of something is often not worth the effort at startups, where focus is especially important,” said Saldanha.

 

However, Saldanha does not buy into the notion that companies need ‘AI specialists’ to succeed. He believes it is as simple as hiring smart engineers who are willing to tinker and learn practical tooling, at least in the beginning. Later, more specialists can be recruited to solve specific growth-related problems.

 

Helping startups integrate AI

 

Gowri Shankar Nagarajan, associate partner at Antler India, said his firm provides advisory support to enable portfolio companies to adopt AI.

 

“We have a bunch of AI practitioners who are available to any founder to brainstorm how they should think about using AI and the right tech stack for AI,” said Shankar.

 

Antler is also actively working with major tech companies to give startups access to AI tools to experiment before setting up a full-fledged product roadmap.

 

Generative AI (GenAI) has the potential to add a cumulative $1.2–1.5 trillion to India’s gross domestic product (GDP) over the next seven years, according to a report by EY. The report, titled AIdea of India: Generative AI’s Potential to Accelerate India’s Digital Transformation, states that in 2029-30 alone, GenAI could contribute an additional $359–438 billion to India’s GDP.   

Guiding Light

  - VCs actively guide startups offering strategic advice and resources

  - Rapid AI evolution necessitates adaptable strategies, especially for application-layer software companies 

- VCs advise integrating AI capabilities into existing solutions and developing AI-native modules

  - Portfolio firms like DecoverAI leverage AI for automation in specific sectors like legal tech