If you speak to business forecasters, they predict generative AI will soon change everything, with businesses large and small having to adopt AI or risk being left behind. Of course, these predictions aren’t anything that we haven’t heard previously. But given how fast information and data flows, it could well be that these prognosticators and fortunetellers are right. Not only will large enterprises need to commit to AI strategies, but the same may be true for AI for small businesses and start-ups. The problem is strategies to use AI for small businesses are not well-defined yet. This is where many are struggling to find their way.
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Like many of us, small businesses have perhaps explored ChatGPT and other generative AI tools for content creation. This can speed up some tasks within a company that might otherwise be mundane and time-consuming. But in order to make a productivity and profitability impact, these are hardly the promise of generative AI. Instead, AI for small businesses and startups should explore more advanced applications. Strategies to use AI for small businesses need to be innovative in order to maximize AI’s potential. The landscape in this regard is certainly challenging currently given so many unknowns surrounding the technology. But companies wanting to excel in the years to come may want to begin experimenting sooner rather than later.
Overcoming Small Business Barriers to AI Use
Before strategies to use AI for small businesses can proceed, there are several obstacles that need to be considered. Notably, the most common ones relate to a natural hesitation to use new technologies. Combined with a lack of insight about how generative AI works, companies may delay experimenting with AI. This is understandable, since time and other resources are limited. No company, especially startups and small businesses, want to utilize these poorly. But committing to some level of education and experimentation is important. Even a few baby steps toward using AI for small businesses and startups could be substantial later.
Some companies may also have some other specific concerns about the use of AI for small businesses and startups. For example, there are risks for false information to be created with generative AI at present. For companies that need to be highly accurate in their communications and information sharing, this is worth noting. However, generative AI can still be helpful in creating initial drafts and summaries. Other concerns may be related to cybersecurity protections. Open sharing of company information may therefore need to be monitored in some instances. This too does not mean strategies to use AI for small businesses need to be aborted. They simply need to be closely regulated and monitored when utilized.
Key Uses of AI for Small Businesses
The statistics related to the use of AI for small businesses and startups suggests few are engaged currently. Some surveys report only about 5% of companies truly leverage AI to their advantage currently. However, about 60% of small businesses have tried it for task automation to some extent. About half of these companies have implemented AI and chatbots to improve reliability and quality of services. But beyond this, the use of AI for small businesses and startups has been limited. For example, less than a third have explored opportunities to expand offerings through generative AI. The figures are even smaller when it comes to companies using AI to reduce costs or to better align with industry standards. It can thus be said that strategies to use AI for small businesses haven’t been very innovative so far.
Without a doubt, the use of AI for small businesses and startups should involve some key areas already. For instance, AI can be used to create better job postings to hire hard-to-acquire talent. It can also be used as a “thought colleague” to jumpstart creativity and to better prepare for meetings and discussions. Beyond this, strategies to use AI for small business could involve enhanced product or service features. If such enhancements provided a chance to generate greater revenues or to be more productive, then experimentation is supported. This will vary from one company to the next as well as from one sector to the next. But either way, it’s important to consider how AI for small businesses and startups might offer new advantages.
Early Adoption Highly Encouraged
Understandably, few companies have adopted strategies to use AI for small businesses so far. Inexperience, lack of standards, and lack of evidence undermines its use overall. But that doesn’t mean AI for small businesses and startups shouldn’t be pursued. According to trend reports, over two-thirds of all jobs will be affected by AI. Already, graphic design, marketing, content creation, legal services, and accounting are seeing task displacement with AI. Likewise, informational and professional services will similarly be affected as generative AI improves. These represent early areas of change and disruption, of course. But they also indicate that changes due to AI will expand significantly in coming years if not months. For this reason, small businesses should start investing in AI applications to gain competitive advantage not just now but later.
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There are many issues regarding generative AI that still must be resolved. For example, data ownership for training AI remains unclear at present. Malicious use of AI and the need for regulatory oversight are also topics of debate. However, generative AI is not going anywhere and will progressively affect all sectors. This means that those adopting strategies to use for small business now will be better equipped to adapt to future advances. While AI for small businesses and startups isn’t well delineated now, in time they will be. This could precisely the boost many small businesses need to get ahead in their market. Regardless of how AI use evolves, knowledge is power. Soaking up as much knowledge now about AI as possible is therefore a great plan to increase future potential.
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