Startups embrace AI revolution: Hiring surges, women leaders rise, and young talent floods the workforce

Startup tech teams increased hiring for AI-driven roles such as machine learning engineers and data scientists by 17% in 2024, according to a new report from RazorpayX Payroll.

Beyond tech, AI adoption has transformed core business functions, including marketing through AI-powered customer segmentation and operations with AI-based demand forecasting. Additionally, nearly a third of startups invested heavily in reskilling employees and streamlining recruitment to adapt to an AI-centric future.

“These changes signal that startups are not just focused on growth—they’re recalibrating their strategies to build more resilient, future-ready organizations,” said Ayush Bansal, Vice President & General Manager, RazorpayX, in a statement.

“Looking ahead to 2025, AI will remain at the heart of innovation, with teams combining human expertise and technology to create impactful solutions. To succeed, startups must drive growth with purpose, harnessing technology to scale,” Bansal added.

The report, based on payroll data from over 4 lakh employees across more than 60,000 companies using RazorpayX Payroll, did not clarify whether individual employees or companies had provided consent for their data to be used.

The findings also highlighted a 19% increase in women’s leadership hiring in 2024, although salaries for women grew by only 12%. In contrast, salary increments for men during promotions rose by a modest 9%.

Finance teams made notable progress in narrowing pay disparities, with women’s salaries reaching 85% of their male counterparts. HR departments in these startups maintained a balanced gender representation.

The report also revealed a significant influx of young talent, with a 27% rise in employees under 30, marking a demographic shift in the workforce.