SMALL BUSINESSES AND AI
Artificial Intelligence, also known as machine intelligence, has become a prominent term in the tech industry over the past two decades. Although there were significant breakthroughs about a decade ago that fuelled the hype, there are various ways in which small and developing businesses can leverage this technology to their advantage, and that is the focus of this article.
Artificial Intelligence refers to the process of training machines or computers to respond to information, data, and input in a manner that mimics human behaviour. This enables computers to provide information more accurately with minimal or no supervision. Essentially, it involves programming algorithms or formulas to enable a computer to process large amounts of data.
Artificial Intelligence encompasses four main components, which are broadly categorised into machine learning, natural language processing, robotics, and computer vision. Robotics and computer vision contribute to AI’s cognitive awareness and visual capabilities, while Machine Learning and natural language processing are more focused on communication and human interaction.
In the past, AI was largely monopolised by big tech companies that led the way in discoveries, benefiting from substantial investments in research. Examples include Google’s DeepMind and Waymo, Google Assistant, IBM’s Watson, Apple’s Siri, Microsoft’s Cortana, and Uber’s self-driving technology, all of which demonstrate breakthroughs in artificial intelligence.
The perception that AI is an expensive tool exclusive to large corporations has led many small businesses to overlook its potential benefits. In reality, AI holds significant advantages for small businesses, as it can optimise and automate various business processes, leading to exponential growth within a short period for startups and small enterprises that have integrated it into their operations.
AI presents promising opportunities for both technology startups and non-tech startups with tech-enabled solutions. Technology startups can leverage powerful open-source AI kits and tools, such as Google’s TensorFlow, Caffe, Amazon Machine Learning, and Crayon, to integrate AI into their products. Additionally, there are AI analytics and techniques to track data points and provide detailed reports for business owners to analyze growth and metrics.
One of the key advantages of Artificial Intelligence is its ability to process large datasets and predict user or customer behavioural patterns for new products, using tools to analyse and track data from various sources.
Small businesses are already utilising AI for data collection, and although complex data analysis may currently require the expertise of a data scientist, it is anticipated that small businesses will gain access to predictive data within the next few years. For instance, Google’s Brand Lift assists businesses in conducting advanced A/B testing on ads based on customer interactions, optimising data analysis and implementation.
Customer service is another area where AI is optimising business processes, with many small businesses integrating automated communication tools, such as virtual customer assistants and chatbots, to provide efficient customer support and reduce the costs associated with maintaining 24-hour customer service lines.
AI has also played a significant role in driving marketing strategies for organisations, enabling data-driven advertising based on demographic and user behaviour analysis. This allows businesses to target their audience across various social channels, making programmatic advertising a cost-effective option for small businesses.
Finally, AI has been instrumental in product development and data collection, offering automated feedback loops and various tools powered by AI. Small businesses can utilise these resources to optimise their operations and gain valuable insights.
In conclusion, the adoption of Artificial Intelligence holds great potential for small businesses, offering numerous opportunities for growth and efficiency.
PS: Originally written in 2020, before the 2022 LLM breakthrough.
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