Artificial intelligence has gone mainstream over the past few years and is being implemented in countless business applications. However, according to a Microsoft survey, only 10% of small businesses with 0 to 24 employees “know how to use AI for work-related tasks,” and “67% have little or no knowledge of AI in general.” I don't know at all,” he replied. So what is AI? And how can AI technology benefit small and medium-sized businesses?
AI-enabled features power cybersecurity, marketing, and recruiting software. In a Microsoft survey, nearly 9 out of 10 self-proclaimed AI experts believe AI is a valuable asset or transformative for their companies. Learn what artificial intelligence is and how organizations can use it to improve operations and button rows.
Fundamentals of AI for small businesses
In its simplest form, artificial intelligence refers to technology that can process information and solve problems. This includes subfields such as machine learning (ML), which allows AI tools to sort data and learn from previous datasets. Today's AI, or artificial intelligence (ANI) in the narrow sense, does not think for itself. It relies on human training to learn how to handle calculations such as “if yes, then do this, otherwise do that.”
Deep learning, another subset of AI, is called “scalable machine learning” because it reduces some of the human intervention required to process data. The generative AI technology used in ChatGPT exhibits a form of deep learning. These models take in raw data and produce new output.
Other terms you may have heard that fall under the umbrella of AI include:
- Machine vision or computer vision: This allows computers to process visual data. Consider business applications such as fleet management software that collects and analyzes images, or manufacturing solutions that scan barcodes and products to ensure product safety.
- Natural language processing (NLP): This AI technology is one of the oldest. This allows computer programs to process human language and power business software features such as sentiment analysis and text translation.
- AI automation: Automation itself is not intelligent. But when combined with AI technologies like robotics and ML, they can perform repetitive actions or learn input and respond automatically. Examples include AI-enabled chatbots and business process automation (BPA) features such as automatic user permissions.
- Self-driving car: Self-driving trucks and cars leverage many AI technologies (deep learning, computer vision, image recognition) to assess and respond to their environments. Most vehicles also use AI tools for voice recognition.
- Robotics: Equipped with AI, robots can automatically perform tasks similar to those used on factory assembly lines. Some companies rely on algorithms and sensors to process data and make decisions.
Self-aware AI (artificial superintelligence (ASI) and artificial general intelligence (AGI)) is not yet fully developed and used. This is a type of AI that could theoretically surpass the human brain.
[Read more: How Artificial Intelligence (AI) Is Changing How Marketers Sell Everything From Food to Fashion]
AI and ML make business software smarter and faster
The speed and versatility of this technology makes it a perfect fit for many applications, from RingCentral's AI-enabled video assistant to AI marketing automation tools. In short, AI powers any software used in business today. If you're using cloud-based tools, AI will enhance one or more of your customer relationship management (CRM), email marketing, or accounting platforms.
The most common use cases desired by small business owners include automating repetitive tasks and analyzing customer data and trends. Order tracking and customer service software offers AI capabilities that improve business efficiency while improving the client experience. It's a win-win situation for small and medium-sized businesses.
Business owners can use artificial intelligence without any specialized skills. However, small businesses surveyed by Constant Contact reported concerns about learning curves, data security, and costs. Microsoft's survey also revealed that more than half of small business owners are concerned about financing their AI technology. Additionally, 41% need help prioritizing where to start, and 41% express concerns about training and skills on how to best use AI.
In its simplest form, artificial intelligence refers to technology that can process information and solve problems.
Key challenges that artificial intelligence can solve
Microsoft reports that nearly half of small business owners are “so busy managing the day-to-day aspects of their business that they don't have the energy or means to help their business reach its full potential.” He says he feels it. According to Microsoft's 2023 Work Trends Index report, if you lack the time and energy to do your job, you're 3.5 times more likely to have difficulty thinking strategically or innovating.
Small business owners report the following barriers to success:
- Communication with customers.
- Accounting and budget management.
- Handles administrative tasks such as scheduling and data entry.
- Acquire new customers.
- Employee Hiring and Retention.
- Marketing to target audience.
- Conversions lead to sales.
Furthermore, 43% of executives surveyed told Microsoft that they “cannot afford to prioritize data security.” Instead of taking action, entrepreneurs are “admitting to rolling the dice, hoping to avoid a breach rather than investing enough to provide the protection their business needs.”
Artificial intelligence can reduce or eliminate pain points in all of these areas. However, 46% of executives surveyed by Constant Contact said they had only a beginner's understanding of the benefits of these technologies.
[Read more: 4 Trend-Driven Ways Brands Are Tapping Personalization for Growth]
Benefits small businesses realize after implementing AI-powered tools
There are many ways businesses can benefit from artificial intelligence. Optimize your business operations at a high level, enabling more efficient processes and increased productivity. AI also provides the data needed to make better decisions. Small business owners will (finally) have access to enterprise-level insights to plan their workforce, inventory, and financial resources.
According to Constant Contact research, small business owners realized the following benefits after implementing AI solutions:
- More than 90% say AI has increased their company's success by reducing manual errors, increasing growth, and adding hours to their week.
- One-third of respondents believe they save more than 40 minutes each week on marketing tasks.
- 28% achieved financial gains and estimated they would save at least $5,000 over the next year.
Examples of AI software functions
Vendors are rushing to introduce AI-powered features into their software products to stay ahead of competitors. This competition means that many of our favorite systems may offer new tools based on AI or ML. For example, graphic design tool Canva launched a text conversion feature in 2022 that turns words into unique images.
Other examples of AI in business apps include:
- Business phone system: Voice over Internet Protocol (VoIP) services like Nextiva, Dialpad, and RingCentral have AI capabilities that can assess caller sentiment, transcribe calls, and summarize video conferences.
- Financial applications: QuickBooks offers cash flow forecasting capabilities, while Xero uses AI to categorize transactions. AI tools are included in payroll, tax, and forecasting software.
- Marketing platform: Most CRM, email marketing, and advertising software uses generative AI, automation, and ML. HubSpot has a bot builder, and Freshworks' Freddy AI is a sales assistant in Freshsales CRM.
- Chatbot: Tools like Intercom, Zendesk Support Suite, and Drift provide conversational AI bots. By embedding them on your website or online store, you can improve the customer experience and reduce calls, emails, and texts to your customer service team.
- Cybersecurity software: AI identifies anomalous behavior and vulnerabilities to protect your network from attacks. Most cybersecurity systems use AI technologies such as CrowdStrike, ThreatCloud AI, and Darktrace.
CO— is dedicated to bringing you inspiration from leading and respected experts. However, before making any business decisions, you should consult a professional who can advise you based on your personal circumstances.
CO – is committed to helping small businesses start, operate and grow. Learn more about the benefits of small business membership with the U.S. Chamber of Commerce.
provided by
Grow your business with marketing automation
Did you know that marketing automation can increase lead generation by over 450%? Take action to grow your business and sign up for a free account today.
Sign up now!
issued
