2026, Vol. 7, Issue 1, Part A

Artificial Intelligence (AI) has become a disruptive power within the startup sector that has led to innovation in business models and improvements in performance indicators like revenue increase and valuation multiples. In the proposed study, the effects of AI are explored by conducting a systematic literature review and empirical analysis based on linear regression supported by primary data evidence and illustrated with the example of Shri Vishwakarma Skill University (SVSU), the first government skill university in India. Regression analysis demonstrates that AI adoption has a significant positive correlation with business performance: AI adoption can boost business revenue growth by 96.4 per cent and valuation multiples by 17.4 times with high explanation power (R 2 = 0.767 and 0.894 respectively). The primary data that is provided by SVSU based on surveys on employability of students, as well as on vocational experiments and skill ecosystem studies, also confirms the importance of AI in terms of talent preparedness and the development of entrepreneurial skills. The results emphasize the dual role of AI: it allows the organization of business based on the scale and trains a qualified workforce by providing institutions such as SVSU. The implications are elaborated on among the entrepreneurs, educators and policymakers in pursuit of sustainable AI-driven innovation.