AI is math, not magic
Business owners may not realize it, but they're probably already using various forms of AI. Ask your phone for directions and the AI will find the best route for you. When promoting your business online, AI can help you target people who might be in the market for your product.
AI may seem like magic, but it is software that can detect patterns in datasets. Once “trained” on specific data to know those patterns, it uses complex calculations and guidelines to make predictions.
There are many different types of AI, some of which have been used in computing for decades.
Types of AI
- narrow AI: These are AI algorithms designed to perform specific tasks, usually repetitive or pattern-based. Narrow AI powers spam filters for email accounts and program recommendations for TV streaming services.
- Generation AI: These are AI algorithms trained on a database of text to recognize patterns in words and sentences. Generate text, images, or other content in response to prompts and recognize patterns to generate answers. This includes services such as ChatGPT, Microsoft Copilot, and Google's Gemini.
After the breakthrough year of 2023, when you think of “AI,” generative AI products may be the first thing that comes to mind. These are among the most common ways companies use AI to assist with time-consuming tasks such as communications, content creation, and market research.
Read CSIRO's commentary on generative AI for business.
How AI can help small businesses
For most small businesses, the AI tools they want to use already exist. Low-code and no-code off-the-shelf services are available. AI services can help enhance business areas such as operations, customer service, and decision-making.
“Most small businesses worry about interest rates and electricity bills. The challenge for small businesses is that they don't have time to consider how AI can help their business,” Duyvestyn said.
Many small business owners may think that AI is too expensive for them. “What we often hear from small businesses is that AI is only for large companies. It's either expensive or it doesn't work for us,” she said.
However, Duyvestyn challenged these notions and emphasized that considering affordable AI options can save businesses time and money in the long run.
“In recent years, a number of new startups have emerged that use AI to help small and medium-sized businesses save time and money,” Duivestin said.
“We have services like AI tax assistants and generative AI for financial, environmental, social, and governance reporting. Analyze customer data to identify when customers are not using your product and are looking to disengage. , there is one service that offers advice on how to re-engage.”
Dr Usman added that more AI services are rapidly becoming available to assist with a huge range of tasks.
“AI is helping in almost every area of the business pipeline. It helps in customer profiling and is also very useful in processing data. It may be possible to automate some of the tasks that used to take time. “No,” he said.
In 2023, CSIRO commissioned research into how Australia's AI ecosystem is evolving, including exploring the potential of AI ecosystems for business.
Duyvestyn said: “The rise of ChatGPT has brought generative AI to the masses. My advice is to try out AI tools and see if it helps your business.”
To connect with Australian companies offering AI solutions that can help your business, search NAIC's AI Discoverability portal.
To learn more about how businesses are leveraging AI to improve their competitiveness, read CSIRO's Australian AI Ecosystem Momentum Report.
Use AI responsibly and manage risk
Responsible AI is the practice of developing and using AI systems in ways that benefit individuals, groups, and wider society while minimizing the risk of negative impacts.
For companies planning to implement AI, it is important to ensure that it is used responsibly. Responsible AI is more than just a buzzword. It is a concept that reflects ethical business practices.
Dr. Usman believes that AI is a tool like any other and that small and medium-sized businesses need to consider how the technology can help them, but also be aware of the possible downsides.
“AI has the potential to bring real benefits to businesses. But there are also downsides and risks that people need to be aware of,” he said.
AI systems do not truly understand the information provided to them. This means that you can and do make mistakes, and that facts should not be considered correct. Businesses must ensure that content is accurate and relevant before using it.
Dr. Usman pointed out that AI is only as good as the database that powers it.
“How an AI is trained determines what it produces. If it is trained on biased data, it will produce biased answers. Similarly, AI tools can be easily fooled. “It is important that the AI tools we use are ethical, accurate, and rigorously tested.”
Businesses using AI systems must also understand and fulfill related legal obligations regarding privacy, personal data, safety, and the potential impact on them and their customers.
CSIRO is partnering with Australian company Red Marble to develop and test prototypes to help businesses use AI safely and effectively.
Responsible AI: Learn more about three tools to help your business.
Introducing AI to your business
Once a company has found an AI tool that they think would be beneficial, it's important to make sure it meets their needs before inputting company data.
This can be achieved by running a pilot program before scaling up across the business. This enables controlled and measured adoption of AI, allowing businesses to understand and manage the impact of responsible AI on their operations.
There are practical steps every company should consider and take before implementing AI into their business. Read CSIRO's guide to responsible AI in small and medium-sized businesses.
Artificial intelligence has the potential to revolutionize business as much as the Internet has. Although this technology is still in its infancy, it is already being used as a tool to help small businesses perform essential tasks, such as gaining a deeper understanding of their customers and their needs. And more programs are being developed all the time.
Want to learn more about AI and how it can support small and medium-sized businesses? CSIRO's National AI Center and the Institute of Digital and Applied Technologies have partnered to award 1 million free 'Introduction to AI' scholarships is provided.
