INTERNATIONAL BUSINESS SCHOOL
AI TECH ASSISTANT
Management and Business Context
By: Adrián Carrillo Sánchez
‘’Our AI assistant company offers digital assistants powered by artificial intelligence to
help businesses automate routine tasks and improve customer experience, providing
unique features such as multilingual support, natural language processing, and
customized workflows.’’
Adrián Carrillo
INDEX
Overview of the Business.............................................................................................................3
Products or services:....................................................................................................................3
Products:..................................................................................................................................3
Services:...................................................................................................................................4
Distinctive and attractive qualities:..........................................................................................4
Target market:..............................................................................................................................4
Competition:................................................................................................................................5
Site selection:...............................................................................................................................6
Financial plan:..............................................................................................................................7
Balance sheet:..........................................................................................................................7
Income statement:...................................................................................................................9
Cash flow:...............................................................................................................................10
Conclusion..................................................................................................................................11
References:................................................................................................................................12
Adrián Carrillo
Overview of the Business
Adrián Carrillo (2023). The selected company is a startup that creates AI-driven
personal assistants for companies. Data entry, scheduling, and customer service
enquiries are just a few of the repetitive activities that the product's clever virtual
assistant can do. Additionally, the AI assistant may examine data and offer insights to
enhance corporate procedures.
The service is unique since it provides organizations with a practical way to assign
work, boost productivity, and cut costs. The personal assistant's performance can be
improved over time by using AI to learn from previous interactions.
The amount of money needed to start a company like this would depend on a number
of things, including the size of the team, the price of development, and the cost of
marketing. A tech startup typically needs a sizable investment to cover the initial costs
of research and development, hiring talent, and marketing the product. A rough
estimate for a startup like this could range from $500,000 to $1 million or more,
depending on the scope of the project. The investment may come from venture
capitalists, angel investors, or through crowd funding.
The business will generate revenue by charging a subscription fee to businesses for
using the AI-powered personal assistant service. The subscription fee can be structured
based on the number of tasks or level of complexity required by the businesses. For
example, a basic package could include basic tasks such as scheduling and data entry,
while a premium package could include more complex tasks such as analytics and
customer service.
Products or services:
The following products or services are available on our website, so here it is a
summarized explanation of them:
Products:
A personal assistant powered by AI that is capable of carrying out a variety of
duties, including making appointments, handling emails, arranging files, and
doing research.
A user-friendly interface that enables users to converse with their personal
assistant using speech recognition and natural language processing (NLP).
Options for customization that let customers mold their personal assistants to
their unique requirements and preferences, like choosing favored
communication channels or picking particular task categories.
Adrián Carrillo
Services:
To ensure that clients always have the assistance they need to be productive
and efficient, our team is available around-the-clock to help them with any task
or request.
Data privacy and security steps to safeguard clients' private information and
guarantee adherence to applicable laws and standards.
Ongoing user feedback and new developments in AI technology will be taken
into consideration when making updates and enhancements to the personal
assistant's features.
Distinctive and attractive qualities:
Advanced AI technology powers your personal assistant, allowing it to constantly
improve over time by learning from user interactions. As a result, clients working with
their assistant may become more effective and fruitful.
The personal assistant may seem more like a personal assistant than a generic AI tool if
users have the option to tailor it to their specific tastes, which may appeal to
customers who value a personalized touch.
Finally, clients who work long hours or in different time zones may find the personal
assistant's 24/7 accessibility to be especially attractive because it guarantees they will
always have support available.
Target market:
Commbank (2022) First, as businesses look to streamline their operations and cut
costs, automation and digitization are on the rise across a wide range of sectors. AI-
powered personal assistants could assist businesses in achieving these objectives by
automating routine duties and freeing up staff to concentrate on more complex jobs
that call for human expertise.
Second, the use of virtual aides is already spreading among consumers, as evidenced
by the popularity of Alexa and Siri. Because of their familiarity with AI-powered
assistants, businesses may find it simpler to implement comparable technology in their
own processes.
Coursera (15 July, 2022). Furthermore, as technology develops and becomes more
sophisticated, there may be a rise in demand for AI-powered personal assistants that
can carry out difficult duties and better adjust to user preferences.
Adrián Carrillo
In conclusion, it might be wise to start investigating the possible market for your AI-
powered personal assistant for businesses. To gain a better understanding of the
viability of your company idea, conduct market study and speak with potential clients
or business experts.
Competition:
Here are some potential drivers of competition in the market for AI-driven personal
assistants for companies:
1. Technology: One of the main forces driving rivalry may be the level of
sophistication and power of the AI technology employed by various providers.
Businesses with more sophisticated and advanced AI technology may have an
edge over those with less sophisticated products.
2. Customization: Being able to adjust the personal assistant to meet the
requirements and preferences of each client could give you a competitive
advantage. Clients may find more appeal in providers with more customizable
choices than in those with more generic offerings.
3. Pricing: When selecting a provider, customers will consider the cost of the
service. A competitive pricing strategy may give businesses an edge over more
costly ones.
4. User experience: A differentiator for providers could be the personal assistant's
simplicity of use and general user experience. Customers may find more allure
in businesses with more logical and user-friendly interfaces.
Courtland L. Bovée, John V. Thill (2017). Without knowing particular competitors in
the market, it is challenging to give a thorough overview of competitors' strengths and
weaknesses. Here are some possible benefits and drawbacks for companies that offer
AI-powered personal assistants:
Strengths:
Modern artificial intelligence that can learn from and adjust to user tastes.
Features that can be changed so that users can configure their personal
assistants to meet their particular requirements.
24/7 accessibility and prompt customer requests responses.
Strong data privacy and security controls to safeguard customer data.
Weaknesses:
Limited customization possibilities that might not satisfy all clients'
requirements
Adrián Carrillo
High prices that lesser businesses might find difficult to bear
Limited functionality or powers in comparison to other providers
A lack of faith in technology or worries about the protection and privacy of data
Site selection:
Maptive (January 11, 2022). I had chosen the United States the country for developing
my business.
Here are some of the advantages and disadvantages of the chosen site:
Advantages:
Large market: The personal assistant service has a lot of potential customers in
the United States' broad and varied business sector.
The United States is technologically advanced, and because of its many tech
companies and innovative culture, it may be simpler to locate and hire talented
developers and engineers.
Access to capital: The Company may be able to obtain financing from the highly
developed venture capital market in the United States.
Similarities in culture and language could make starting a company in the
United States simpler and more comfortable for you if you are a native English
speaker or have prior experience working in an English-speaking environment.
Disadvantages:
High level of competition: There are likely to be many other businesses
providing services comparable AI-driven personal assistants given how
competitive the tech industry is in the United States.
High cost of living: The cost of living and conducting business is relatively high
in many areas of the United States, which may affect your running expenses.
Overall, because of the sizable potential market, financing availability, and advanced
technology sector, I suggest expanding the company in the United States. Thoughts
about cost and possible competition should also be kept in mind.
Adrián Carrillo
Financial plan:
The financial projections for this AI-powered personal helper company are based on a
monthly subscription model, with the expectation that it will sign up 50 clients in the
first year and double that number in the following two. The monthly subscription
charge is taken to be $5,000 per client.
Balance sheet:
Here we can see the balance sheet of the company:
Balance Sheet (As of December 31, 2023)
ASSETS
Current Assets:
Cash and cash equivalents $900,000
Accounts receivable 50,000
Inventory 20,000
Total Current Assets 970,000
Property, Plant and Equipment:
Equipment 50,000
Less: Accumulated Depreciation 5,000
Net Property, Plant and Equipment 45,000
Intangible Assets:
Software development costs 800,000
Total Intangible Assets 800,000
Adrián Carrillo
Other Assets:
Investments in other companies 100,000
Total Other Assets 100,000
Total Assets 1,915,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable 50,000
Accrued expenses 30,000
Total Current Liabilities 80,000
Long-Term Liabilities:
Loan payable 600,000
Total Long-Term Liabilities 600,000
Shareholders' Equity:
Common stock, €0.10 par value, 10,000,000 shares authorized,
5,000,000 shares issued and outstanding 500,000
Additional paid-in capital 1,000,000
Retained earnings (265,000)
Total Shareholders' Equity 1,235,000
Total Liabilities and Shareholders' Equity 1,915,000
Adrián Carrillo
Income statement:
Following this financial plan, I will provide an income statement for the first 3 years of
operations:
Projected Income Statement
For the Years Ended December 31, 2023-2026
Year 1 Year 2 Year 3
Revenue:
Subscription Revenue $3,000,000 $12,000,000 $24,000,000
Expenses:
Salaries and Wages 750,000 1,500,000 2,250,000
Rent and Utilities 75,000 100,000 125,000
Marketing and Advertising 50,000 100,000 200,000
Research and Development 500,000 1,000,000 1,500,000
General and Administrative Expenses 125,000 250,000 375,000
Total Expenses 1,500,000 3,000,000 4,450,000
Net Income before Taxes 1,500,000 9,000,000 19,550,000
Income Tax Expense 375,000 2,250,000 4,887,500
Net Income 1,125,000 6,750,000 14,662,500
Adrián Carrillo
Expenses:
The fixed costs consist on: salaries for a team of 10 developers are expected to cost
$600,000 a year, along with wages for managerial staff and customer support staff.
Another fixed cost that we have estimated at $120,000 annually is rent.
The variable costs related to software creation, technology infrastructure, and
customer acquisition is included in the variable expenses. According to our projections,
the first year's expenses for the technology infrastructure will be $200,000, rising to
$500,000 in the third year. The estimated expense of developing the software is
$100,000 in year 1, rising to $30,000 in year 3. Finally, we predict that the expenses
associated with acquiring new clients will start at $50,000 in year one and reach
$150,000 in year three.
Cash flow:
To conclude the financial plan I will provide a cash flow statement for the first three
years of operation:
For the Years Ended December 31, 2023-2026
Year 1 Year 2 Year 3
Cash Flows from Operating Activities:
Net Income $1,125,000 $6,750,000 $14,662,500
Depreciation and Amortization 50,000 100,000 150,000
Increase in Accounts Receivable 62,500 (375,000) (1,312,500)
Increase in Prepaid Expenses 7,500 15,000 22,500
Increase in Accounts Payable 5,000 10,000 15,000
Increase in Accrued Liabilities 25,000 50,000 75,000
Net Cash Flows from Operating Activities $1,275,000 $6,550,000 $14,612,500
Adrián Carrillo
Cash Flows from Investing Activities:
Purchase of Property, Plant, and Equipment $(100,000) $(150,000) $(200,000)
Net Cash Flows from Investing Activities $(100,000) $(150,000) $(200,000)
Cash Flows from Financing Activities:
Issuance of Common Stock 20,000 40,000 80,000
Proceeds from Bank Loan 50,000 100,000 150,000
Repayment of Bank Loan (25,000) (50,000) (75,000)
Net Cash Flows from Financing Activities 45,000 90,000 155,000
Net Increase in Cash and Cash Equivalents $1,220,000 $6,490,000 $14,567,500
Cash and Cash Equivalents, Beginning $100,000 $1,320,000 $7,810,000
Cash and Cash Equivalents, Ending $1,320,000 $7,810,000 $22,377,500
Conclusions:
In conclusion, it should be noted that the business financial plan for this AI-powered
personal assistant is based on conservative revenue assumptions and realistic cost
forecasts. It is encouraging to see from the plan that the company will experience
positive net revenue and cash flow in its second and third years of operation.
The first year of operation may, however, necessitate a sizable investment in
technology infrastructure and customer acquisition expenses, producing a negative
cash flow.
As a result, it's critical for the company to have a sound financial strategy and access to
enough funding to get through the early stage of financing.
Adrián Carrillo
To end the business plan, just a quick reminder that it’s an hypothetical start-up, so
some features and characteristics might not reflect some realism and could be more
theoretical than practical.
References:
Courtland L. Bovée, John V. Thill (2017). Business in action. 8th edition. England:
Pearson.
Adrián Carrillo (2023). Overview of the business, IBS moodle.
Commbank (2022), How to write a financial plan (online), Available at:
https://www.commbank.com.au/articles/business/business-financial-plan.html
Coursera (15 July, 2022). What Is a Target Market? And How to Define Yours
(online), Available at: https://www.coursera.org/articles/target-market
Maptive (January 11, 2022). The Site Selection Process: Choosing the Best
Business Location (online), Available at: https://www.maptive.com/site-
selection-process-choosing-the-best-business-location/
