This study explores the impact of artificial intelligence (AI) on marketing strategies in Indian start-ups, focusing on improving market penetration, customer engagement, and sales performance. Using a mixed-method research design, data was collected from 450 respondents across major Indian cities. Key constructs measured included AI-driven market analysis, customer interaction, predictive analytics, cultural adaptability, and economic scalability. The findings revealed that AI-driven strategies significantly enhance market penetration and sales performance, with predictive analytics playing a crucial role in adapting to diverse market conditions. These insights highlight the importance of AI in crafting effective marketing strategies for start-ups.