Although 55% of small and medium-sized businesses (SMBs) realise that artificial intelligence (AI) could bring huge benefits to their operations, 43% still have no plans to use AI technology.
Economic uncertainty is making many SMB owners hesitant to make changes since the market is so unstable and budgets are tightened.
This hesitancy can result in businesses falling behind the competition and risking their growth.
In this article, we discuss five different ways that SMBs can introduce AI to improve their efficiency and thrive during the rocky economic landscape.
1. Identify market trends
With economic uncertainty making it more difficult than ever to predict what is around the corner, business owners are scared to take risks.
AI is able to use vast amounts of data to identify market trends in their early stages. Through a combination of search engine traffic, social media, and business data, any shifts in behaviour can be spotted before the trend takes off.
For SMBs with fewer resources and budget, AI has opened up endless new opportunities. Now that they can access advanced data analysis without hiring a skilled professional or paying large sums of money, they are able to compete with larger organisations.
From a business perspective, this insight can offer incredible value. Being able to learn of emerging trends before they reach their peak will allow the business to take action and get ahead of the competition. Whether they launch a new product range, create a new marketing campaign, or simply create some fun social media content, utilising market trends will help increase reach and engagement.
2. Create an optimised marketing strategy
The way a SMB markets itself can be the difference between an unsuccessful business venture and a rapidly growing one. Although marketing is crucial to the growth of a business, it is often one of the first things to see a budget cut when cash flow is tight.
Nowadays, access to AI has made marketing more accessible to a wider range of businesses.
The support of AI means a business is now able to produce a personalised marketing strategy based on their brand image, target audience, business goals, and budget. This means they can improve their efforts without necessarily needing specialist marketing knowledge.
Once the strategy has been put in place, AI tools can also be used to help execute it. From using Surfer SEO to optimise content for search engines to creating short videos using Crayo, brands with limited resources can now maximise their marketing output and improve their online presence.
3. Improve customer service
During tough economic conditions, customers are more cautious than ever when handing money over to new businesses. There has been a rise in the number of people checking reviews and thoroughly vetting a company to ensure they are opting for the best service or product.
Providing a flawless customer service experience can help establish trust among new customers and build up loyalty. If people feel heard and supported when contacting a business, they will have a much more positive impression of the company.
If an SMB is not able to facilitate 24/7 customer service through phone calls and email support, AI can help them offer continuous support.
An AI chatbot uses natural language processing to create personalised responses to a user’s written query. Through a combination of business data, broader knowledge, and the analysis of past responses, the chatbot can provide support on common issues.
In addition to providing customers with a higher level of customer service support, utilising AI to manage inquiries can help take the weight off the shoulders of the businesses employees. By freeing up their time, their efforts can be focused elsewhere in the business.
4. Make data-driven business decisions
Adapting to the ever-changing landscape is vital for businesses. Consumer expectations are forever growing and with technology advancing at such a rapid rate, falling behind can leave a business struggling to keep up with the competition.
SMBs can utilise AI to help make informed business decisions. Whether they are looking to optimise their pricing strategy, stock their inventory, budget for the upcoming period, or make hiring decisions, the support of AI tools can minimise risk and produce a more accurate outcome.
AI tools analyse vast amounts of business data, along with general industry trends, to quickly suggest solutions. Since they are able to identify patterns that otherwise would take hours and hours of manpower, an SMB is able to make informed decisions that don’t require advanced resources that are inaccessible to smaller businesses.
In a time of economic uncertainty, switching to AI when looking to make data-driven decisions will help a business adapt to the times and align with the needs of the modern customer.
5. Automate administrative duties
Nowadays, daily tasks that previously took up hours of time every day can be automated with the help of AI.
Whether it be data entry, payroll processing, generating reports, or inventory management, these ongoing tasks take up a big chunk of time for employees and take them away from other tasks which require more skill.
Using AI to automate administrative duties can take a big weight off the shoulders of employees and allow them to focus their attention on other areas of the business. Since they will now have more time to spend on growing the business and creating a quality customer experience, the overall running of the business is bound to see improvements.
Some examples of popular AI tools among SMBs include Microsoft Copilot for analysing data and creating Microsoft documents, Zoom AI Companion for creating a transcript of a meeting and summarising key points, and Softr for creating a custom inventory management software.
Why SMBs Can No Longer Ignore AI
As economic uncertainty makes it harder than ever for SMBs to tap into new markets, there is no room for hesitation. Businesses need to embrace change and continue to evolve in order to keep up with the ever-changing demands of the consumer.
From identifying upcoming market trends to making data-driven business decisions, utilising the power of AI should be a no-brainer for SMBs in the modern day.
With so many free and low-cost tools out there which can analyse vast amounts of data and produce informed decisions in a matter of seconds, SMBs have an unmissable opportunity to compete with larger businesses.
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