Your Step-by-Step Guide to Starting an AI Business in 2025

Two years ago, I was stuck.

I’d spent over a decade in AI. I was an engineer, a data scientist, building cutting-edge systems for companies that made millions off my work. But I wasn’t making millions.

I knew AI inside and out, but I didn’t know anything else—marketing, sales, copywriting, design. The stuff that actually makes money.

So, I stayed stuck. Watching the AI boom from the sidelines, wondering if I’d ever figure out how to take my skills and turn them into something bigger.

Then something clicked.

I realized this new AI revolution wasn’t just about building systems. It was about becoming a swiss knife, leveraging AI and solving cross-disciplinary problems (check out my last letter on this topic).

I stopped being just a specialist. I turned myself into an AI generalist and started my own business.

That shift took me from being stuck, to making almost $1 million in two years.

I’ve built four AI businesses, two of which are still alive. One of them earns over $50K every single month.

The AI gold rush isn’t slowing down. The opportunities are massive—but only for those who know how to act now, cut through the noise, and focus on what works.

I’ve learned a lot the hard way: what works, what doesn’t, and what beginners need to avoid to succeed in this space.

That’s what this guide is about.

I’m breaking down everything you need to start an AI business in 2025—step by step, no fluff, no theory, just actionable advice.

Look, this is a huge topic and I can't possibly cover every angle. But I'll give you my honest take on what matters most, based on real experience.

I’ll show you how to:

• Decide if an AI business is right for you.
• Choose the right AI business model based on your skills and goals.
• Master the essential skills (without wasting years).
• Launch step by step in 2025—while avoiding rookie mistakes.

The AI space is pure chaos right now.

Everyone's talking.

Few are building.

If you start building tomorrow, you’re already in the top 20% (I would say).

I'm here to give you a blueprint that works in the real world.

Whether you’re looking to make an extra $5K a month from a laptop at the beach or build something much bigger, this guide will give you a clear plan.

Grab a notebook, silence your notifications, and let’s dive in.

Is Starting an AI Business Right for You?

Before we dive into strategies and skills, let's tackle the big questions most people skip.

This is a big topic, and I could spend several letters writing only about this. The purpose here is not to discuss every detail on whether you should or should not start a business. The internet is flooded with this type of content. Instead, let me give you the real talk about what matters.

Here's my take: The barriers to entry have never been lower. With AI tools becoming more accessible every day, anyone with a laptop, drive and creativity can build something valuable. Each of us sees the world differently, and that unique perspective? That's your USP.

I truly believe most people should consider starting their own business. Find a problem to solve and build a tribe around it.

That being said, let me talk about the other side of the coin.

Starting an AI business is exciting—but excitement alone won't pay the bills. While AI is booming with opportunities, you need to find the right fit for you.

Let’s start with the elephant in the room:

Are you cut out for entrepreneurship, now?

Not everyone is, and that’s okay. Running a business—AI or otherwise—takes a mix of creativity, persistence, and an unshakable ability to learn on the go. It’s not about being a genius or having years of experience. It’s about being willing to solve problems, adapt, and build something from scratch.

Building an AI business will take time. If you’re looking for a quick side hustle that takes an hour a week, this isn’t it. That said, it doesn’t have to consume your life either. Many successful AI entrepreneurs started with just 10–15 hours a week while working full-time jobs.

Why AI?

There are countless online business models out there—e-commerce, content creation, consulting, marketplaces, name it.

Why focus on AI? The answer is simple: Timing.

We’re at the very beginning of a massive AI revolution. The demand for AI-driven solutions is skyrocketing across every industry. AI isn’t just another business opportunity—it’s a shift in how the world works, and the people who step in early will have an edge that’s hard to match.

Do I need a Developper?

This is the #1 question I get from people who want to start an AI business.

The short answer? No, you don’t need a developer.

The longer answer? It depends on the type of AI business you want to build. AI businesses fall on a spectrum. Some require coding skills, others are easier if you have coding knowledge, and plenty need zero technical experience.

My intimate conviction? You don't need a developer. At all.

Here’s why:

The "AI revolution" that started about 2–3 years ago is a democratization revolution. Every. Single. Person. Can do it all with just a ChatGPT window opened. If you can articulate what you want, read the response, and copy/past the output, you'll dramatically amplify your capabilities and skills.

This is why, I’m advocating for AI generalists. You can read my previous letter on this topic.

How Much Time Do You Need to Invest?

Time commitment is the first thing people ask about when starting an AI business.

Here's the truth: You don't need to quit your job. You don't need to work 80-hour weeks. But you do need to be consistent.

There are two paths you can take:

• Fast Track: Dedicate 20-30 hours per week. You'll see results faster, but it's intense alongside a full-time job.
• Steady Path: Commit 10-15 hours per week. Progress is slower, but it's sustainable for most people. Make sure you’ll be ok with slow progress.

Think of it like building a house. You don't need to construct it in a day. Lay one brick at a time, consistently. That's how lasting businesses are built.

Later in this guide, I'll show you how to maximize whatever time you can invest.

The 5 Types of AI Businesses You Can Start in 2025

The AI gold rush is here. 2025 is your year.

Let me show you what works, what's dead, and how to get started.

First up: AI Consulting.

1) AI Consulting

AI consulting is your fastest path to making money with artificial intelligence.

Zero startup costs. First profits within 90 days. Perfect for beginners who want to learn while earning.

Companies need someone to explain AI opportunities, recommend tools, train the team and create implementation plans. That someone could be you.

I've seen friends dive into AI tools like ChatGPT and Midjourney, share their journey online, and before they knew it, they were booking 3-5 consulting calls a week at $500 each.

But it's not as simple as it sounds. If it were, we'd all be sipping margaritas on a beach somewhere.

The real challenge isn't mastering the tools - it's landing those first clients. This is where most people hit a wall and give up.

So here's my no-nonsense playbook for beginners:

Pick one platform you enjoy - could be X, LinkedIn, or YouTube. Then share your AI learning journey openly. Test tools, post your results, show people how to solve real problems. Casually mention you do consulting. Trust me, the calls will start coming in.

This is how I started cohorte.co, and now we serve several large clients worldwide.

Pro Tip: Don't be just another "AI consultant." Pick a niche. Help small businesses automate customer service. Guide real estate agents. Build AI strategies for CEOs. The narrower your focus, the easier you stand out.

Now, let's move to another beginner-friendly option: AI Education.

2) AI Education

The demand for AI education is exploding. I believe AI education is a business that will grow x100 in the next few years.

Entry costs are low—$100–$300 for basic tools.

You can turn a profit within 3 months.

And you don’t need any technical experience to begin.

Why is this such a huge opportunity?

Because while AI tools like ChatGPT feel second nature to you (or not yet), billions of people are just discovering them. AI giants are introducing more and more features and capabilities, expanding even more the wide range of possibilities.

Learning those possibilities is a competitive edge, and survival for businesses and people.

People and businesses are scrambling to learn these skills.

AI education is about turning your knowledge into resources that help others. Courses, ebooks, workshops, membership communities—you decide the format.

People are hungry for this knowledge. You don’t need to know everything—just stay one step ahead of your “students” / audience.

How to Start:

1. Learn the basics (read my previous letter on the key skills and powers).
2. Pick your niche—are you teaching solopreneurs, CEOs, kids, or teams?
3. Create your first product—a simple ebook, webinar, or course.
4. Share content on social media to attract your first customers (this is a must).

Start small. Your first product doesn’t have to be perfect. Maybe it’s a $20 ebook on using AI for content creation. From there, you’ll refine your skills and grow.

3) AI Agencies

If you’re good at managing projects and love working with clients, this one’s for you.

Low upfront investment—about $300 for software.Profits possible within 3 months.And the long-term potential is massive.

Here’s the simplest way to think about it: every time a game-changing technology emerges (websites, social media, mobile apps), businesses need experts to help them adopt and benefit from it. That’s exactly what AI agencies do—bridge the gap between businesses and AI.

What You’ll Need:

• A small team or freelancers to handle technical tasks (if you’re not technical yourself).
• A laser-focused niche, like e-commerce automation or AI-driven marketing.
• Client acquisition skills (we’ll cover strategies later, also check my previous letters).

But here’s the question I hear most: Do I need to be a developer to start an AI agency?

The answer: absolutely not.

You can tailor your services to your skill level. Here’s how:

• No-Code Solutions: Perfect for beginners. Use existing AI tools to automate tasks like customer service or appointment scheduling.
• Low-Code Solutions: For those with some tech skills who can tweak tools to better fit client needs.
• Custom-Coded Solutions: Ideal for developers or teams that want to build advanced AI systems from scratch.

Most beginners start with no-code tools. Platforms like Make, Zapier, and ChatGPT-powered APIs allow you to customize solutions for businesses without touching a line of code. For example, you could build chatbots, automate email workflows, or streamline data entry processes.

You can use ChatGPT or Claude to write code for you, even if you've never coded before.

4) AI SaaS

AI SaaS (Software as a Service) is the big leagues.

High investment.

High effort.

Massive potential.

Here’s the model: You create software that solves a specific problem, and users pay monthly or yearly to access it. Think of tools like Canva, Slack, or Jasper AI.

But let's be real—this isn't for beginners. Building an AI SaaS business requires:

• Significant funding: $50,000+ for developers, marketing, and operations.
• Time: Expect 6–12 months to build and test your product before seeing profits.
• A solid team: You'll need skilled developers, UX designers, and marketers.

However, I would nuance this a little bit. SaaS used to cost $50,000+ for development, but the cost of development has drastically gone down with the rise of AI tools. On the other hand:

NEVER, EVER START A SAAS BUSINESS WITH PRODUCT DEVELOPMENT.

Start by testing the idea with a landing page, Google Ads, and a waitlist subscription (by showing the price)—I learned this the hard way.

Then once you see signs of traction, build as you keep your community engaged.

How to Build an AI SaaS:

1. Find a Problem: Research pain points in industries where AI can make a difference.
2. Validate Your Idea: Talk to potential users and refine your solution.
3. Build the Product: Hire developers or work with a tech co-founder.
4. Test Thoroughly: Fix bugs, ensure a seamless user experience, and iterate.
5. Launch & Market: Target your niche audience with ads, partnerships, or organic content.

I know friends who created a micro-SaaS tool for real estate agents to generate property descriptions using AI. They spent $20K building it, launched in 4 months, and hit $8K/month in recurring revenue within their first year.

Why go through the pain of building SaaS?

Because if you get it right, you’re looking at scalable, recurring revenue and the potential for massive exits. Successful SaaS businesses don’t just solve problems—they become indispensable.

If you think big, SaaS is your path.

5) Freelancing

AI freelancing is a goldmine right now. You need about $200 for courses to start, and within 2 months, you can start making real money.

As an AI developer, you'll build solutions for companies that need them. The best part? You're learning while earning - seeing firsthand how AI transforms businesses.

Start small, grow big. Many freelancers evolve into agency owners or build their own AI products. The opportunities are endless.

Remember: There's space for everyone in AI. You just need to start.

However, be aware that while opportunities are expanding, you'll face strong competition from highly qualified remote freelancers based in India, North Africa, and other regions who often charge lower rates.

Finding Your Perfect AI Niche (That No One Else Sees)

Here are a couple of things where you can get creative.

Here's the thing about AI opportunities - they're hiding in plain sight. While everyone's fighting over finance and healthcare, there are goldmines in places like local farming, indie music production, and small-scale logistics. These niches are begging for AI solutions, with low competition and desperate customers.

Look at old-school industries like manufacturing and car repair. They're years behind in tech adoption. Imagine being the first to bring AI-powered equipment maintenance to your local auto shop. That's the kind of opportunity most people miss.

Another important thing to keep in mind: "personal branding." I know, it's becoming like a buzzword lately, but don't overlook it — it's your secret weapon. Your journey from wherever you started to becoming an AI entrepreneur? That's pure gold. Share it. Build in public. People trust stories more than they trust products.

Here's something counterintuitive: consider going open-source. Yes, give away your core tool for free and then offer premium features that make you money. Companies like Hugging Face are crushing it with this model.

Think bigger than just building tools. Become the curator, the person who brings together different AI solutions into one seamless experience. It's like being the DJ of AI - you're not making the music, you're creating the perfect mix.

Getting people to actually use AI is half the battle. The best tech in the world is useless if people are scared to click the button. Focus on making AI feel natural, maybe even fun. Use simple language, add some gameplay elements, make it impossible to resist.

Another massive opportunity everyone's missing: local languages. Most AI tools suck at anything that isn't English. Build something that works in Arabic, Vietnamese, or Swedish, and you've got an entire market to yourself.

Pro tip: don't build anything until you know people want it. Put up a landing page. Get a waitlist going. Run google ads. If nobody signs up, you just saved yourself months of wasted work.

Last thing - and this is crucial - remember that AI is scary for most companies. Their workers are freaking out. Want to be indispensable? Help them manage this transition. Teach their teams. Show them how AI makes their jobs better, not obsolete.

Essential Skills

Let me share the core skills you need to succeed in AI. These are the exact tools I use daily to build and improve solutions that clients love.

Theory is great, but mastery comes from getting your hands dirty.

Let's start with prompt engineering - the foundation of everything else...

Prompt Engineering

Prompt engineering is the art of crafting precise instructions to get the best results from AI models.

A well-written prompt can mean the difference between mediocre and exceptional outputs.

It starts with defining the AI’s role clearly: for example, “You are an expert email classifier capable of analyzing and categorizing emails.” Adding examples (shot prompting) helps the AI understand exactly what you want, while providing task context clarifies why it’s performing the job, improving results dramatically. These techniques may seem small, but they’re game-changers for getting the most out of AI systems.

Not all good prompts follow this exact pattern. You need to hone your skills through trial and error. You can read a full letter here on prompt engineering secrets.

APIs

Next, you’ll need a solid grasp of APIs, the bridges that allow different tools to work together. APIs enable AI systems to interact with software like Airtable, Voiceflow, or custom platforms.

Think of an API as a digital translator—it sends requests (like asking a database for information) and delivers responses (like returning the data you asked for). Whether you’re connecting chatbots to spreadsheets or integrating data into workflows, understanding APIs is key to making AI solutions functional.

Building Tools

Building AI toolsis another must-have skill. Tools are custom solutions that automate processes, simplify workflows, or solve specific problems.

Thanks to no-code platforms, you can now create powerful tools without writing code. For example, you could build a chatbot that collects leads and stores them in a database or design a content repurposing assistant to transform video transcripts into social media posts.

These tools allow you to standardize processes, making your solutions scalable and efficient for clients.

If you have no idea where to start to build such tools, the starting line is simple. Go to ChatGPT and type: "Guide me step-by-step to do XYZ..." As simple as that.

AI Auditing

Here's a skill nobody talks about: AI auditing. Think of it as being a detective for businesses - you dig deep to find where AI can make the biggest impact. It's not just about analyzing spreadsheets - it's about asking the right questions and spotting opportunities others miss.

The best part? Every audit sharpens your instincts, making you better at turning curious prospects into paying clients.

Software Smarts (The Basics)

Here's the truth - you don't need to be the next Mark Zuckerberg to crush it in AI. What you do need is to understand the basics of how software works. With ChatGPT as your coding buddy and no-code tools like Zapier in your arsenal, you can build pretty much anything these days. Even complete beginners can stitch together powerful workflows with a bit of guidance.

Again, if you have no idea where to start to build such tools, go to ChatGPT and type: "Guide me step-by-step to do XYZ..."

Data Management

Let's talk about data - it's the fuel that powers every AI system worth its salt. If you can't handle data well, your AI solutions will flop. Period. You need to know how to move it around (tools like Zapier are great for this), keep it clean, and make sure it's actually useful. Garbage in = garbage out.

Start by building simple data pipelines—try extracting data from your email, organizing it into a clear structure, and importing it into Google Sheets or Airtable. This hands-on exercise is invaluable for learning.

Content That Actually Matters

Listen, creating content isn't just about filling space - it's about building your empire. Whether you're posting on LinkedIn, YouTube, or X, every piece of content should establish you as someone who knows their stuff. It's like having a sales team that works 24/7. Pick one platform, master it, and watch the opportunities roll in. The best part? You're building authority while you sleep.

The Launch Blueprint

I'm about to share something powerful with you - the exact roadmap to launching your AI business in 2025.

But first, a reality check.

The AI world moves at lightning speed. What works today might be ancient history in six months. You need to stay sharp, stay informed. Read everything you can get your hands on - including my letters and other AI news sources.

Now, here's what really matters:

• Start small, think massive. Skip the complexity trap. Pick one thing - maybe it's finding your niche, maybe it's reaching that first client. Progress beats perfection every time. And here's the golden rule: 99% of the time, start with a landing page. DO NOT dive into building software first.
• Use what's already out there. Don't waste precious months reinventing tools. Grab existing AI platforms, APIs, and no-code solutions to kickstart your journey. Solve problems now, expand your toolkit later.
• Obsess over the problem, not the tech. AI is just your tool, not your end game. Find a specific pain point you can solve - whether it's for a business, creator, or individual. Nail that, and everything else falls into place.
• Guard your deep work time. Carve out distraction-free zones each week for your AI business. Consistency trumps intensity every time. Even 10-15 hours weekly can create magic (I did this while working full-time).
• Document everything. Track what works and what bombs. Learn from every project, every client interaction. The faster you learn, the faster you grow. Trust me: your documentation will become a product you can sell to future clients.

Here's your battle plan:

1. Build something cool to learn. One (or multiple) bold projects you wanted to build. Time-box delivery. Share everything you do online to attract traffic.
2. Build a landing page (or many landing pages) for your "AI business." You'll need to learn how to build them: copywriting, marketing, sales, and funnels.
3. Send traffic to these pages (use Google Ads eventually if you generate low traffic on social media) and see what happens.
4. Once you start getting some traction for your "AI Business" idea, then start building systems and operations (not the other way around).
5. You'll start having your first calls eventually. Prepare for rejection. Learn, iterate, and refine.
6. You'll eventually land your first client(s). Deliver, ask for a testimonial. Learn, iterate, refine, repeat.
7. Stay laser-focused on your goals. Don't let distractions derail you—even when they masquerade as amazing opportunities. Trust me, there will be many shiny objects trying to catch your attention. Keep your eyes on what truly matters.

Opportunities like this AI revolution are rare. The best time to start was yesterday, but the second-best time is right now.

Let’s make 2025 the year you finally launch. The tools, resources, and roadmap are in your hands. Now, it’s your turn to act.

Until next year, with more AI insights, hacks, and SOPs. Wishing you a happy new year!

—Charafeddine