AI is changing the world — according to PwC, the technology could add $15.7trn to the economy by 2030. While many people are nervous at what those changes could look like in the long-term, AI is creating a positive effect too. The technology is an invaluable tool for impact startups looking to solve some of the world’s most pertinent issues, with multiple use cases possible within a single business.
“AI can help bring learnings and best practices together so impact startups can start building on solutions rather than reinventing the wheel every time,” Lisa Hehenberger, professor at the department of strategy and general management at Esade Business School and director of the Esade Center for Social Impact, tells Sifted.
“If you want to convince investors or attract resources to your activities or solutions, it's important to be able to show that it's actually having an effect,” she adds. “Having data that shows causality is one of the big ways AI can be of use.”
Here’s how impact startups are using AI to achieve good — faster.
AI for good in action
Esade Business School supports impact entrepreneurs using AI through its entrepreneurship ecosystem and tailored Masters programmes, as well as opening up the conversation to the wider startup community on how AI can drive impactful growth at events such as 4YFN, a startup event in Barcelona. In this 4YFN, held as part of the Mobile World Congress (MWC), Esade sponsors the GreenTech vertical and organises several roundtable discussions and debate sessions.
As an Esade professor, Hehenberger is at the forefront of this conversation. She is also on the board of the Global System for Mobile Communications Association (GSMA) Foundation, which has an innovation fund that invests in startups that are connecting mobile technology with impact topics like climate change, gender equality and financial inclusion.
One such startup is Crop2Cash, a startup that enables African smallholder farmers to access financial services and connect directly with large buyers, enhancing their productivity and incomes. Its operating system for agricultural lending makes it possible for farmers to pay and get paid, build a digital financial profile and get access to credit.
One of its solutions is a National Hotline for Agriculture, an AI-powered system that can provide real-time, personalised agricultural advice to smallholder farmers in their local languages via a toll-free phone line.
“The AI system uses natural language processing to understand and respond to queries in multiple local languages including English, Yoruba, Hausa and Swahili,” says Michael Ogundare, founder and CEO at Crop2Cash. “It uses its extensive knowledge base to provide contextually relevant advice and continuously learns from user interactions to enhance its ability to address region-specific farming challenges.”
Crop2Cash is also expanding the machine learning capabilities of its AI system to enable it to deliver more personalised farming recommendations based on individual farm conditions and historical performance.
Evening up the playing field
Another example is Methinks, a Barcelona-based startup using AI for stroke detection through the machine learning of medical imaging. The team can detect strokes earlier than a human and the technology has passed clinical trials.
“Other new technologies that we have seen in recent years like 4G and relatively cheap and accessible mobile phones have had a massive impact on developing countries, giving people access to knowledge and the potential of building ventures,” says Davide Rovera, cofounder and manager of eWorks, Esade’s venture creation programme, who also participates in 4YFN. “AI that can be run remotely in the same way is a massive democratiser.”
Thanks to an increase in internet access and related technologies like AI globally, Rovera says he’s seeing more examples of founders breaking through from underprivileged backgrounds. He says many use spare time to learn how to use a new technology – that technology then runs on the cloud and such founders have access to an internet connection, making them on par with founders in Silicon Valley in core aspects.
Ogundare’s advice on adopting AI for your impact startup? View is as a friend, not a foe.
“Just as big tech has marketed their best AI tools, think of AI as a copilot that can enable you to do, think and create twice as fast,” explains Ogundare. “I describe AI as augmented intelligence for humans because what it really does is augment our existing base intelligence and creativity.”
Delegating with GenAI
Rovera says as well as leveraging AI to deliver a certain value proposition, founders are utilising AI to empower them to achieve more.
“Startup founders are extremely limited by resources — and in most cases, time. There is the classic advice to say, ‘Hey, if something is urgent but not super important, delegate’, but founders have nobody to delegate to. Now, there is a way to delegate it via the use of GenAI tools. When used well, AI delivers almost an infinite army of interns,” says Rovera.
Despite this opportunity, Rovera says the adoption of such tools is still fairly low amongst founders — he estimates around 20% of the entrepreneurs he’s worked with understand how to really use GenAI. Mentoring, he adds, is one way to remedy this.
For example, eWorks identifies students at Esade who are interested in entrepreneurship and want to set up a company, supporting them with their network of mentors.
“We have a few founders that have been operating with machine learning years before the big boom that are kind enough to give their time to help our founders develop products, understand what to do and move forward,” he says.
“Mentoring in this way is one of the core areas where we support founders. It's a combination of inspiring people to understand and not be scared of new AI tools.”
