The AI startup dilemma: To pivot or perish

In the last few weeks, four Indian AI startups have announced that they are shutting in the face of challenges such as scaling up, raising funds and pivoting as technology shifts rapidly. This includes two Y-Combinator companies Wuri and CodeParrot as well as Subtl.ai and Locale.ai. This is not unusual in the world of startups. According to the US Bureau of Labor Statistics, more than 50% of the startups fail within five years.

However, unlike the previous cycles, beyond operational challenges, these closures are coming amid rapid technological…