Generative AI as a Tool for Swedish Startups - A qualitative study on how Generative AI can affect Swedish startups

Abstract: In today's rapidly evolving technological landscape, startups are constantly seeking new ways to innovate and stay ahead of the competition. One promising innovation is Generative AI, which uses large datasets to generate original content such as images, music, code, or text (McKinsey & Company, 2022). Generative AI has the potential to significantly impact startups in various areas such as prototyping development, benchmarking, marketing, content creation, and business analysis. However, successful implementation of Generative AI requires entrepreneurs to have strong social skills, broad networks and a flexible business model. This thesis examines the challenges, opportunities, and application areas of Generative AI for Swedish startups. The research questions focus on how Generative AI can affect startups by identifying application areas, examining potential challenges, and exploring opportunities. The research employs a qualitative approach using purposive sampling, and interviews were conducted with four individuals from small, mid-size, and large companies. Thematic analysis was used to identify the application areas, challenges, and opportunities of Generative AI for startups. The research findings suggest that Generative AI can significantly impact startups in various areas such as prototyping development, benchmarking, marketing, content creation, and business analysis. Theoretical implications include contributions to AI and entrepreneurship, social capital and entrepreneurship, and responsible AI adoption. Practical implications recommend startups consider adopting Generative AI but approach it with a thoughtful strategy. Future research recommendations include exploring the social and ethical implications of Generative AI for startups and improving the quality of Generative models. In conclusion, this research highlights the potential benefits of Generative AI while also acknowledging the challenges that startups may face when implementing this technology. By understanding the implications of Generative AI, startups can make informed decisions about whether and how to adopt this innovation to drive their growth and success.