AI for Small Businesses – Helping You Grow

Artificial Intelligence isn’t new. Computers have been storing data and using it to determine next steps since the technology made it possible in the second half of the 20th century. Maybe, like me, you’re old enough to remember IBM’s computer Deep Blue beating the reigning chess grand master Gary Kasparov in 1997.

Now, though, we’re seeing AI solutions in all areas of our life. With limits on storage and processing power reduced, along with the huge increase in data available for our technology to ‘learn’ from, the use of AI in our tools has become possible, practical, even ubiquitous.

When I asked for feedback from our Your Business Matters members, Jen from SEM Help told me, “I use AI for keyword research and website auditing. Siri for when I lose my phone in the house. Zoho has a built in AI tool called Zia and it can tell you when the best time to email a particular individual is. I use Grammarly as a spell checker for everything that’s not Microsoft Word, and did you know Face ID is AI, so I use it every time I unlock my phone. I use Gmail and LinkedIn’s smart reply options, and obviously pandering to Google’s AI algorithm tools is essential to help my clients extend their search engine reach.”

It seems AI is everywhere.

As small businesses and SMEs, who are continually looking to grow; we are often seeking out effective, efficient tools and solutions which will allow us to perform better, save time, and make more money. In this blog post, we’ll explore the tangible benefits and practical applications of AI for small businesses, while also addressing the risks and challenges that come with integrating AI into your small business operations.

AI Benefits for Small Companies – Helping You Grow

I asked a number of our members to give me their thoughts on AI and how it supports them in their business. I’ve broken their answers down into four areas:

1. Improving Productivity with AI

There are a variety of tools to help your business productivity every day – whether you’re writing emails, social media posts or managing your admin. You may already be making the most of Chat GPT to perform tasks you’d rather avoid, or using AI inspiration for your social media posts to prompt ideas and produce your content quicker.

As well as saving time, creating a first attempt at your task with AI is a good way to avoid the blank page which can cause such a block for so many of us.

Josh, website developer at Yolkk, told me “AI has become an indispensable tool for me and my business Yolkk. We use it in; writing, image creation, coding, and even for strategic advice. Its ability to serve as a launchpad for creativity and problem-solving is what makes us enjoy and rely on its capabilities.

Despite our dependence, recognising AI’s current limitations is also paramount. For instance, ChatGPT acts as a copywriting catalyst to overcome the initial hurdle of a blank page but isn’t used to produce the end result. Generating images for blog posts and social media help add interest but are far from professional photography and graphic design. Even using it for website code can be an incredible experience overcoming specific issues whilst on other occasions producing fruitless solutions.

Currently AI is like getting a string of local buses from London to Manchester. Faster than walking but if you have the funds it’s worth paying for the direct service.”

2. Streamlining Operations with Automation

Again, there are a number of AI tools available to help you automate repetitive tasks in your business – that might be data entry, routine customer enquiries or tedious admin tasks. Using these tools allows you to free up your valuable time for strategic work and decision making.

Shelley Rostlund, of content marketing and brand strategy company Harbour 32, told me “We use it for captions and audio transcription – jobs that are fiddly and necessary; basically, jobs that are on repeat – AI can do these. And it’s getting better. But I don’t trust it enough for many jobs yet.”

3. Using AI to Inform Decision-Making with Data Analytics

Research is another task which can be supported by AI. Not only have our search engines utilised the technology to improve our results and give us information we didn’t know we wanted, telling us what “People also ask” and “Related searches” can be very useful.

AI chat services provide intuitive ways to interrogate data, allowing you to start with one question and keep going until you get to the depth you’re looking for.

Amy, graphic designer and owner of Amy Todd Designs shared “I’ve replaced Google with AI/Chat GPT for both business and everyday questions. I find the response more direct and in-depth and I can build on the answers which I love. A tip from me would be to tell it you want answers based on UK info or data, especially when asking it for something business related.”

Similarly, copywriter Natalie of Writer for You says “I find AI really useful for research. For generic ideas and planning it can simplify things by rationalising articles and giving useful examples. I would say though, if you’re looking for facts it’s important to ask for evidence or references to provide links to actual documents – if the AI tool you’re using can’t find an answer to your question, they’ve been known to make things up.”

4. Problem Solving and Handling Complex Tasks with AI

While it’s easy to see the benefits of having AI manage our simple repetitive tasks, there are also ways these tools can help us with problem solving and handling bigger projects. With bigger projects, these tools advise how to break things down creating plans for an approach and making something new feel achievable.

Our member Chanel, owner of meal prep and catering company Nourished, says “I’ve used it to write plans and processes. I’ve found AI to be really helpful when facing big projects. I often use prompts such as ‘act as an expert in…’, ‘explain how to…’. This saves hours of Google searching to find information and breaks down complex processes step by step so that I can complete projects quickly and efficiently. It’s a great guide, although it’s not perfect!”

Equally, as Josh mentioned above, he sometimes uses these tools to find solutions to problems. These certainly can’t be relied upon without verification, but can provide a simple way to identify options for you to work through.

The Potential Risks of AI Solutions

While the benefits of AI for small businesses are substantial, it’s crucial to acknowledge and mitigate potential risks; and there are a number to consider.

Job Losses
While, for a small business, cost savings can be a huge benefit; when these are achieved by laying people off or taking work from a freelancer there are wider implications. These individuals will likely be providing more than the simple services that AI can take off your hands, and it’s essential you confirm you’re happy with what you’re getting from AI before you make these kind of changes.

Inaccurate or Incorrect Responses
Most AI systems are working on old data and if the service is unable to find the answer to your question it may make something up. It’s essential to verify the data you’re getting from AI if you’re using it for your business.

Data Bias
Like any tool, AI services are only as good as the input they’re given. As well as the input data being outdated, it is also often biased. You’ll need to be very careful if using this biased data to direct your own research or plans.

Ownership of Work
The question of who owns content created by AI is a complicated one. There have been discussions and court cases but there’s currently no easy answer. As Stephen Ruse, Senior Associate in the Intellectual Property and IT team at Howes Percival, told us: “There are a great many unknowns so far as AI, and generative AI in particular, is concerned. That includes the potential intellectual property issues that it gives rise to. For example, is something created by AI protected by intellectual property rights? If so, who owns those rights and protections? Or could there be IP infringements arising from the use of AI, what it generates, or its training? We are already starting to see cases dealing with these points in limited circumstances (and at least one case has answered the question of whether an invention created by AI can be patented). However, with no sign of legislation being advanced to deal with these points, it is very much “watch this space” as cases start to make their way to, and through, the court system.” One thing is for sure, if your AI created content is based on someone elses work it’s important to share references to that.

Loss of Creativity and Skills
In the longer term, is there a risk that – with technology doing the thinking and creating for us – we’ll lose some of our own creative skills and knowledge? Equally, as those who are new to a subject start learning by using these tools, will they ever understand the basic rules and techniques to do the task themselves?

These concerns were articulated particularly well by HR consultant and founder of Gravitas HR, Dawn who shared her own experience. “We carried out a little experiment and asked Chat GPT to list 3 reasons to be cautious when using AI in HR … this is what it had to say:

1. AI in human resources can lead to biased decisions, favouring certain groups of people over others, which can perpetuate discrimination and inequality.
2. The reliance on AI in HR may result in the loss of personalised and empathetic interactions between employees and HR professionals, affecting employee morale and satisfaction.
3. AI-powered algorithms may lack transparency and understanding, making it difficult for employees to challenge or question the decisions made by AI systems in HR processes.

In short, AI is useful, but it isn’t human, and employees are. HR support needs to be able to treat people as people, not data, and AI is a way off that yet.”

To make the most of the opportunities of AI, you’ll need to address these challenges proactively.

AI Technology for Growth

The use of AI offers exciting opportunities for small and medium-sized businesses, helping achieve sustainable growth and competitive advantage by streamlining operations, enhancing customer experience, and unlocking new possibilities for innovation. This, however, needs to be approached with the usual care and consideration of any new tool or development in your business.

It makes sense to explore AI and learn from those who have insights to share. At Your Business Matters, we benefit from a knowledgeable and supportive community, as well as opportunities to learn from each other within our meetings. You’re welcome to join us.