AI is no longer a science-fiction fantasy for large corporations and laboratories. It is becoming more accessible and affordable for small and medium-sized companies (SMEs) across industries and sectors. AI can help small and medium-sized businesses improve their efficiency, client satisfaction, decision making, logistics, and innovation.
What is AI and how can it benefit SMEs?
AI is a broad term that refers to the ability of machines or software to perform tasks that normally require human intelligence, such as understanding language, recognising images, learning from data, solving problems, etc. Some of the benefits of AI for SMEs are:
- Increased output through automated processes: AI can help SMEs in automating boring, routine tasks, allowing staff to focus on more strategic tasks. For example, robotic process automation (RPA) can handle repetitive tasks such as data entry, invoicing, payroll processing, and so on, saving time and reducing errors.
- Augmented workforce for productivity gains: AI can also boost the capabilities of human workers by providing them with insights, recommendations, guidance etc., based on data analysis. For example, sales assistants can use AI-powered tools to generate leads, qualify prospects, personalise offers etc., increasing their conversion rates.
- Outstanding personalised service for improved customer service: AI can assist SMEs in providing exceptional service at scale by utilising natural language processing (NLP) to comprehend customer questions and emotions; chatbots to provide immediate replies; and sentiment analysis to watch customer feedback, and so on.
- Predictive messaging for improved upselling and cross-selling opportunities: By analysing customer activity trends, AI can predict cross-selling and upselling opportunities and send the right message to the right consumer at the right moment.
- AI can help SMEs handle their logistics by giving greater insight into end-to-end processes, optimising routes, forecasting demand, spotting anomalies, and so on.
What are some of the current trends of AI for SMEs?
According to a recent report by Salesforce, some of the current trends of AI for SMEs are:
- AI adoption is growing among SMEs : The report found that 51% of small businesses globally use some form of AI today compared with 39% in 2019. The main drivers for adopting AI are improving efficiency, enhancing customer experience, increasing innovation, and gaining competitive advantage.
- AI adoption varies by industry: The report also found that different industries have different levels of AI adoption. For example, the retail sector has the highest adoption rate, followed by manufacturing, healthcare, financial services, and finally, education.
- AI adoption faces some barriers: The report identified some of the main barriers that prevent or slow down AI adoption among SMEs such as lack of skills or expertise, cost or budget constraints, lack of data quality or quantity, lack of trust or transparency, regulatory or ethical concerns.
What are some of the future opportunities of AI for SMEs?
According to another report by McKinsey, some of the future opportunities of AI for SMEs are:
- Increasing revenue growth: The report estimated that by 2030, AI could potentially increase global GDP growth by up to 1.4 percentage points per year. This could translate into significant revenue growth opportunities for SMEs across various sectors.
- Creating new markets and business models: The report also suggested that AI could create new markets and business models by enabling new products, services, and experiences; enhancing existing ones; or disrupting incumbents. For example, AI could enable new forms of personalisation, customisation, and recommendation; create new platforms and ecosystems; or enable new forms of collaboration and co-creation.
- Empowering social good: The report highlighted that AI could also empower social good by addressing some of the major challenges facing humanity such as climate change
As a summary, AI offers many opportunities for SMEs that require a strategic approach to harness its potential. This blog post has covered some of the essential aspects that SMEs need to take into account when embarking on their AI journey, such as data quality, talent development, ethical issues, and collaboration. We hope that this post has encouraged you to discover how AI can transform your business and help you achieve your goals.
