How small businesses can leverage AI
Artificial intelligence is often seen as an innovation embraced by big companies with deep pockets. But not only do small businesses have access to the same tech-driven opportunities, they may also have more of an incentive to utilize these tools.
A recent study from Deloitte and Stanford University found that 25% of small businesses are currently using AI in some form or another including chatbots, predictive analytics and marketing automation. And while that adoption may seem a little slower than large enterprises — 40% of which are using AI —small businesses have a unique opportunity when it comes to new technologies.
“In many cases, small businesses are able to be more open to embracing new technology,” says Joseph Cole, chief marketing director at Glider, a skill intelligence platform. “With enterprises, there’s a little more fear, more processes, more bureaucracy. Often, they’ve got legacy programs in place. There are too many unknowns, but that’s less so true with small- and medium-sized businesses.”
Read more: How advisers can embrace AI tools without sacrificing human connection
But the very same freedom and lack of rigidity that makes AI more accessible to them could also be making it harder for small businesses to implement it. Unlike large enterprises, which often have more employees and resources, small businesses don’t always have the luxury of taking the time to learn new processes and programs — even when it will help them eliminate inefficiencies in the long run.
Most business leaders are aware of this push-pull: 80% of all business and IT leaders agree that AI increases productivity and creates jobs, according to Narrative Science, a software company that analyzes business data. Eighty-four percent feel AI will help them gain or maintain a competitive advantage, and 44% of businesses have reported cost savings as a benefit of implementing AI. But the fear of wasting precious time and effort on lengthy trainings that could potentially stunt production often keeps them from expanding their tech stack.
“A lot of the time a lot of time they’re just so busy,” Cole says. “They understand that AI can help them, but they have to keep running their business otherwise they’re going to fall behind. It’s too much to learn and they end up not knowing how and where to implement AI.”
Read more: No more ChatGPT? Here’s what the ‘pause’ on generative AI means for the workplace
The most painstaking processes small businesses spend their time on — administrative tasks, hiring, marketing — can be made seamless with AI. Cole said some of Glider’s own clients, as an example, have been able to use AI for recruiting support, and stop paying to outsource professional recruiters
“What small businesses have to understand is that they have to identify how long things are taking now. What are those current inefficiencies? And can those inefficiencies be addressed through AI?” Cole says. “The answer, in most cases, would be a resounding yes.”
In addition to saving time and boosting efficiency, the embrace of AI can send a signal to employees (present and future) about the values and goals of an organization. Particularly for small businesses struggling to attract and engage top talent, leveraging AI can help send a very clear message that your company is committed to meeting employees’ future needs.
Read more: OpenAI offers new privacy options for ChatGPT
“When you’re responsive to a candidate — and AI can help facilitate that responsiveness — applicants are more likely to have a favorable opinion of your company,” Cole says. “And that is important for small businesses because they’re competing with these big companies that have always had more brand awareness. It’s important for small businesses to get out in front of different employment circles and talent pools and do the same.”
And while even the creators of AI are publicly calling for additional regulations and careful consideration around the development of these powerful and advanced tools, it’s unlikely that companies at large will back away from the benefits. As it stands, 90% of well-known companies are investing in AI, according to tech insights website BusinessDIT, and the market for AI is anticipated to reach $300 billion by 2026.
“AI is getting smarter and smarter,” Cole says. “The biggest thing you can do right now as a small business owner is really learn how to embrace AI and understand how to use AI because it’s the people who master AI that are going to be the most successful.”
