Kevin O’Leary Reveals AI's Biggest Startup Opportunity Now

AI startups raised more than $100 billion in 2025, yet Kevin O’Leary, known for Shark Tank, singles out one overlooked AI segment as the prime playground for entrepreneurs right now.

In a recent interview, O’Leary pinpointed AI applications focused on improving business operational efficiency, particularly those automating workflows in small and medium-sized enterprises (SMEs), as the highest-leverage opportunity.

But the real insight is about targeting the specific constraint of manual, repetitive tasks still dominating SME operations—where automation can be deployed without massive upfront investment in data or talent.

This shifts the playing field from competing in crowded AI model development to unlocking accessible, high-impact productivity gains accessible to millions of businesses worldwide.

Targeting Operational Bottlenecks, Not Model Scale

While the AI hype often centers on giant language models and ambitious consumer applications, O’Leary focuses on a practical constraint SMEs face: inefficient, manual processes that reduce growth potential.

The opportunity is to build AI tools that seamlessly integrate with existing SME systems, automating tasks like customer support, scheduling, invoicing, and data entry.

This market constraint—manual workload—is often invisible amid the glitter of large-scale AI breakthroughs but represents a massive untapped economic lever.

By embedding AI assistants directly inside popular SME software suites, startups can deliver measurable productivity lifts without requiring users to change existing habits drastically.

Why This Mechanism Beats Chasing AI Model Races

The mainstream AI race emphasizes scale and innovation of core models, dominated by a handful of players investing billions in infrastructure.

O’Leary spotlights the leverage in focusing downstream on systems integration and specific workflow automation where human input remains critical and AI acts as a force multiplier.

This approach converts AI from an expensive, high-risk research proposition into a scalable, repeatable business model with embedded customer lock-in.

For example, AI tools that reduce invoice processing time by 50% directly translate to cost savings and operational leverage for companies unwilling or unable to overhaul systems entirely.

Concrete Examples Show the System In Action

Airbnb uses AI to automate guest communication at scale, shifting the constraint from manual message handling to automated trust-building.

OpenAI's own assistant integrations cut solo entrepreneur workloads by nearly 50%, a feature that directly lowers barriers to growing businesses without hiring more staff.

Bentley Systems recently embedded AI in civil engineering workflows, automating design document checks and reducing errors—highlighting the extended leverage in domain-specific tasks.

This mirrors patterns explored in how OpenAI’s AI platform cuts entrepreneurs’ work hours by 50% and 7 levers to improve business productivity.

Why This Matters For Entrepreneurs And Investors

Identifying SMEs’ operational bottlenecks as the binding constraint shifts startup focus to AI applications where adoption scales through direct ROI improvements, not just technology excitement.

This positioning reduces customer acquisition costs by selling efficiency gains rather than speculative benefits.

Investors chasing AI applications must recognize that breakthrough returns will come from automating existing inefficiencies rather than building new AI models from scratch, changing the funding game.

Entrepreneurs who target replicable workflow automations will unlock compounding advantages as each integration embeds AI deeper into day-to-day operations.

In a crowded market, this subtle repositioning toward constraint-focused AI unlocks long-term leverage across industries often ignored by mainstream AI hype.

Related Tools & Resources

To operationalize the AI-powered efficiency gains Kevin O’Leary highlights, tools like Capsule CRM offer SME teams a simple, integrated way to manage workflows and customer relations seamlessly. By automating sales pipelines and contact management, Capsule CRM embodies the principle of unlocking productivity with minimal disruption, exactly as the article suggests for AI automation in business operations. Learn more about Capsule CRM →

Full Transparency: Some links in this article are affiliate partnerships. If you find value in the tools we recommend and decide to try them, we may earn a commission at no extra cost to you. We only recommend tools that align with the strategic thinking we share here. Think of it as supporting independent business analysis while discovering leverage in your own operations.

Frequently Asked Questions

What is the biggest AI startup opportunity according to Kevin O’Leary?

Kevin O’Leary identifies AI applications that automate manual, repetitive tasks in small and medium-sized enterprises (SMEs) as the biggest startup opportunity, focusing on improving business operational efficiency rather than competing in large AI model development.

How can AI improve operational efficiency in SMEs?

AI can improve SME operational efficiency by automating workflows such as customer support, scheduling, invoicing, and data entry, reducing manual workloads without requiring massive upfront investments in data or talent.

Why is automating manual tasks a valuable AI application for businesses?

Automating manual tasks addresses the specific operational bottleneck of repetitive work in SMEs, leading to measurable productivity gains and cost savings, like reducing invoice processing times by 50% without drastically changing existing processes.

How does AI embedded in existing SME software benefit companies?

Embedding AI assistants directly within popular SME software suites delivers productivity lifts by automating tasks seamlessly, allowing companies to retain existing workflows while gaining efficiency and reducing customer acquisition costs.

What are examples of companies using AI for workflow automation?

Examples include Airbnb using AI to automate guest communication at scale, OpenAI's assistant integrations reducing solo entrepreneur workloads by nearly 50%, and Bentley Systems embedding AI to automate civil engineering document checks.

How does focusing on workflow automation differ from chasing AI model scale?

Focusing on workflow automation targets downstream system integration and specific task automation, converting AI into a scalable, repeatable business model, unlike chasing large-scale AI model development dominated by a few players investing billions.

Why should investors focus on AI automation in SMEs?

Investing in AI automation in SMEs offers breakthrough returns by targeting existing inefficiencies with direct ROI improvements, reducing customer acquisition costs and embedding AI deeper into daily operations for sustainable growth.

What tools can SMEs use to implement AI-powered efficiency gains?

Tools like Capsule CRM provide integrated workflow and customer management automation, embodying the principle of unlocking SME productivity with minimal disruption, following the automation approach Kevin O’Leary highlights.