How small businesses are leveraging artificial intelligence to become more efficient and competitive.
There is a tendency to think of artificial intelligence (AI) as a highly advanced technology suitable only for large enterprise organizations with well-staffed teams of data experts and IT engineers. In truth, many small businesses are already finding a variety of ways to use AI to improve efficiency, productivity and profitability.
More than half of small to midsized businesses (SMBs) surveyed recently by American Express report they are currently using AI. Of those not already using the technology, two-thirds say they are evaluating it and will consider using it in the future. Current areas of focus for SMBs include using AI to develop customer service chatbots, create business presentations and write marketing collateral. However, that barely scratches the surface of what’s possible.
“AI is going to be infused into practically every business process," said Paul Roetzer, founder and CEO of Marketing Artificial Intelligence Institute. “It will assist in the generation of content, intelligently automate repetitive tasks, make predictions about outcomes, personalize consumer experiences and inform decisions.
“Every business in every industry will be powered by AI, or they will be obsolete. But it won’t take a decade. More like three to five years in most industries.”
Here are a few of the areas where many SMBs are effectively using AI today:
- Content creation. Generative AI tools such as the popular ChatGPT platform are capable of generating text, images and other media in response to prompts. AI can also convert data sets into visually appealing infographics and charts, and generate video scripts, voiceovers and even fully animated videos.
- Customer service. AI-powered chatbots and virtual assistants can offer initial responses to customer service inquiries and often resolve customer issues without further escalation. Human agents can concentrate on more complex customer interactions. Automation software can also respond to customer emails promptly and assign messages to team members for follow-up.
- Cybersecurity. AI security tools can analyze vast amounts of data to identify patterns or anomalies indicative of potential security breaches or cyberattacks. With the capacity to monitor network traffic, user behavior and system logs in real-time, AI systems can automatically launch countermeasures to contain or eliminate threats.
- Data entry. Many people spend an inordinate amount of time transcribing notes or entering data into spreadsheets and databases. AI systems can extract data from paper documents, emails, images, videos and audio files, validate its accuracy, and export it into business applications. AI algorithms can also standardize data entry formats and ensure consistency across different data sources, making it easier to manage and analyze the information.
- Financial planning. By analyzing historical data, market trends and economic indicators, AI algorithms can generate accurate financial projections and forecasts, helping small businesses make informed decisions about budgeting, cash flow management and investment strategies. AI tools can also identify cost-saving opportunities and recommend ways to improve profitability.
- Inventory management. AI systems can analyze sales data, current inventory levels, market trends and other external factors to accurately predict demand patterns and adjust inventory levels accordingly. This not only saves time and effort but can minimize delays and backorders. Real-time tracking also ensures accurate inventory records and allows businesses to implement just-in-time inventory strategies.
- Invoice processing. Studies show it can take nearly a month to manually verify invoice details, approve and send payments, and enter data into the general ledger system. AI can reduce that time by about 65 percent by automating various aspects of the task. For example, AI can route invoices to the relevant stakeholders for approval based on predefined rules, and compare invoice data with purchase orders or delivery receipts to ensure that invoiced items match what was ordered or received.
- Marketing. AI systems can analyze customer data from multiple sources, including call center interactions, purchase history, website visits, social media posts and email communications. This data can then be used to create highly targeted marketing campaigns featuring personalized content, product recommendations and customized offers.
Artificial intelligence opens up a world of opportunities for small businesses to achieve new efficiencies and competitive advantages. By leveraging AI to streamline operations, make data-driven decisions, improve security and enhance customer experiences, small businesses can gain an edge over competitors and position themselves for sustained growth.
“AI is the ultimate leverage for scaling a small business,” said Paul Ohlson of the SCORE network of business mentors. “If you’re not already using it — or at least learning about it so you can use it soon — you’re going to fall way behind your competitors and peers.”
