Artificial Intelligence (AI) has emerged as a transformative force in various industries, reshaping traditional business models and strategies. This paper delves into the profound influence of AI on startups, focusing on how it enables innovation, disrupts markets, and shapes new business paradigms. We explore the ways in which startups are leveraging AI technologies for product development, marketing, customer engagement, and more. Additionally, we discuss the challenges and ethical considerations associated with AI adoption in startups. By examining case studies and trends, this paper provides valuable insights into how startups can harness AI's potential to achieve sustainable growth and competitive advantage.