Cross-border trade is the basis of many small and medium-sized businesses’ operations, but in today’s rapidly changing world it requires huge investments in both time and resources. So it’s no wonder that many companies are turning to AI.
In fact, nearly two-thirds (65%) of business leaders report increasing investment in new technologies such as digital transformation and AI, according to a global survey of business leaders. This is in line with a recent Alibaba.com survey that found nearly two-thirds (63%) of small and medium-sized businesses worldwide are considering implementing such tools.
However, some SMEs are still being held back from fully implementing technology due to perceived barriers, mainly knowledge gaps, with only 11% of SMEs feeling that their current training system is sufficient to meet their future skills needs. KPMG research highlights the depth of AI illiteracy, with almost three-quarters (73%) of Brits having no training or education in AI.
However, with the powerful competitive advantage that AI provides, small and medium-sized businesses must find ways to overcome these barriers and leverage its potential.
Leveling up the stadium
The introduction and rapid development of AI presents great opportunities for small and medium-sized enterprises. Just a few years ago, the use of AI in the market was largely limited to large enterprises with the necessary budget and resources. Today, such technology is available to businesses of all sizes.
From evaluating suppliers and negotiating prices to demand planning, AI is already changing the way businesses source goods and services. In fact, research from the British Chambers of Commerce Insights Unit revealed that a quarter of small and medium-sized businesses are already using AI to run their business. This presents a huge opportunity for small and medium-sized businesses to save resources and operate more flexibly. All you need is confidence in change and a clear concept for implementing different applications.
However, technology continues to evolve. One of the key trends is agent AI. This goes beyond simple analysis to product ideation and market analysis to select the right supplier. For businesses, this translates into significant time savings and fewer manual steps. Hyper-personalization is also shaping technology with offers, prices and content tailored to individual customer needs in real time. This is possible by evaluating a variety of data sources, including purchase history, seasonal influences, and external factors such as weather and local events.
Platforms such as Alibaba.com are capitalizing on this trend, deploying suites of AI tools such as AI Mode that automate and significantly shorten complex procurement tasks for small and medium-sized businesses by interpreting buyer needs, understanding technical specifications, and comparing suppliers.
Meanwhile, the platform’s AI-driven search and recommendation capabilities, which support natural language product queries, allow buyers to describe their needs in everyday language and receive more intelligent rankings of supplier and product matches. This is complemented by AI Product Spotlights, which provides insights into sales growth, seller rank, and product profitability.
Many of these tools can be deployed modularly and integrated without the need for extensive infrastructure, allowing small and medium-sized businesses to overcome historical challenges and ultimately compete on a global scale.
What’s next after implementing AI?
The integration of AI through online marketplaces represents a broader trend across business sectors, with increasing adoption of the technology in B2B and B2C businesses. This will continue to be the case as small businesses realize their transformative nature.
In fact, data from Alibaba.com shows that many small and medium-sized enterprises in Europe already recognize that AI provides a competitive advantage, with just under half (48%) implementing the technology for long-term growth, followed by efficiency (46%) and cost reduction (43%).
Alibaba.com’s suite of AI tools offers a similar competitive edge, providing a more accurate, reliable and competitive procurement process, helping small and medium-sized businesses reduce risk, save time, and focus on growth, ultimately allowing them to compete with larger companies on a global scale.
While full-scale adoption is still not practical for some small businesses, online B2B marketplaces can go some way to easing some of the barriers. By providing the right knowledge and tools, SMBs can better understand and adopt AI tools, strengthening their product sourcing efforts.
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