HR functions in small and medium-sized businesses (SMBs) often look external when it comes to using artificial intelligence to improve operations. This is usually because they don’t have the necessary resources to build the in-house infrastructure or hire the AI experts needed to make the technology work.
But there are new options that allow SMBs to start implementing tools like chatbots with less upfront investment. An artificial intelligence as a service (AIaaS) platform. These third-party vendor solutions provide out-of-the-box AI capabilities to organizations in a manner similar to software-as-a-service (SaaS) offerings common today in the HR technology industry.
Widening gap between AI haves and have-nots
Recent research shows that the gap in AI adoption between large and small businesses continues to widen. A 2022 global study by IBM found that larger organizations are twice as likely to deploy AI as smaller organizations, compared to just 69% in 2021. Lack of tools and platforms for developing tags and AI models.
AIaaS platforms to develop and test tools such as chatbots that can answer common questions from job seekers and employees, and create application programming interfaces (APIs) that improve integration between disparate HR systems Empower small businesses to start using AI by providing a ready-made platform for By using these pre-trained AI tools, SMBs can avoid the cost of investing in dedicated hardware such as GPU-based processors and other infrastructure required to create and use on-premises AI.
AIaaS platforms also help SMBs avoid recruitment and compensation issues at a time when there is a shortage of AI programming professionals (who can typically be highly salaried). .
According to HR technology analysts, AIaaS platforms may be a good fit for HR functions in small businesses that are still figuring out how they want to use AI in their operations.
“AIaaS can be a good option for small and medium-sized businesses without large data science teams or advanced infrastructure,” said an enterprise software expert at Boston-based Nucleus Research. said Senior Analyst Alexander Wurm. “These pre-trained AI models have recently gained popularity, whether for creating chatbots used on websites, speech recognition or data classification. We see immediate value from AI experiments.”
Research shows that more SMBs are likely to invest in this kind of platform in the future. A study by Analysys Mason, a London technology research and consulting firm, found that SMBs plan to increase spending on technology by 6% this year over 2022 levels, with some of that increase coming from Intended for technology. For example, the study found that spending on Platform as a Service (PaaS) solutions is expected to grow 18% year-over-year this year.
The authors of the Analysys Mason study wrote: “Early adopters are increasingly using advanced analytics tools such as business intelligence and AI-powered applications.”
Growth of AIaaS providers
While major cloud infrastructure players such as Amazon, Google, and Microsoft typically offer as-a-service platforms that include some AI capabilities, an increasing number of smaller vendors are servicing SMBs’ AI needs. I’m here. Examples include vendors such as H20.ai, Levity, and Odus.
These platforms are often priced on a subscription-by-usage basis.
For example, the prices posted on AIaaS provider Levity’s website show a monthly fee of $49 for a small organization looking to automate simple workflows with AI. This fee covers 500 “actions” per month, where an action is defined each time AI is used to classify an image, PDF, or text (e.g., one email body). Every step in a workflow counts as an action, such as sending an email or updating a record. The monthly fee includes 10 AI “trainings” for him each month, which involves teaching the AI tool new tasks.
“There are also some platforms where you can import your own data and fine-tune the AI model based on that,” says Wurm. “These options are more expensive because you are actually training an AI model instead of using it as-is.”
Lee Sustar, principal analyst at research and advisory firm Forrester, said other options for SMB HR teams include looking for AI capabilities in technology platforms the organization already uses, or looking for industry-specific cloud He said that includes considering options from the larger cloud providers that increasingly have Products that can be equipped with AI functions.
“Some big companies either offer AI for SMBs or have partners who provide those services,” Sustar said. “For some midsize businesses, AI capabilities may also be available in broader systems that the organization already uses, such as call centers and lead generation technology.”
Limitations of AIaaS solutions
AIaaS platforms have limitations that HR leaders should be aware of, say HR technology analysts. Many platforms are designed for general purpose but cannot be easily customized for use with company-specific data, for example.
“HR leaders need to understand that these platforms are often not optimized for specific use cases,” says Wurm. “The platform is easier to deploy and cheaper than other options, but we haven’t built the platform ourselves, so we’re seeing a plateau in performance and accuracy. Performance may be degraded.”
Brandon Medford, senior principal analyst for IT practices at Gartner, said HR buyers need to understand the compliance, data privacy, and security issues that arise when partnering with AIaaS providers.
“For example, you’ll want to know if there are any compliance or regulatory issues with sensitive or proprietary data that third-party providers access, store or share,” says Medford. “There are also data privacy and security concerns, as is when partnering with vendors where system integration is involved.”
According to experts, HR buyers should ensure that they have sufficient visibility into how the AI in these platforms is performing, and that artificial intelligence is not biased or unethical when automating HR processes or making hiring decisions. We need to avoid the “black box” syndrome that can be used in a generic way.
Dave Zielinski is a principal at Skiwood Communications, a business writing and editing company in Minneapolis.
