How AI Is Changing How SMBs Do Business

Artificial intelligence is transforming how small to medium-sized businesses (SMBs) run their day-to-day operations.

We are in a very exciting time for businesses and the technology that is available to them. Whether you are an entrepreneur, a CEO of a large enterprise, a teacher, or a software developer, it is impossible to get through a day without hearing about new ways that artificial intelligence tools like ChatGPT or Jasper are being used. In the business world, it is transforming how small to medium-sized (SMB) businesses run their day-to-day.

ECI Software Solutions’s Chief Technology Officer (CTO), Brian Winters, has experienced the emergence of AI and its impacts on small-to-medium sized businesses (SMBs).

“AI is the first technology we have seen in a really long time that truly can level the playing field between small businesses and huge enterprises—it's the slingshot in the David and Goliath story,” Mr Winters said.

“Machine learning, Quantum Computing, and other emerging trends will take years, or decades before they are accessible to SMBs. However, AI is here and accessible today for the price of a Netflix subscription,” he said.

Here are some ways that we see different types of AI reshaping how SMBs can do business:

Automation and efficiency

“I think over the next 3-5 years, we are going to see companies as small as 10 or 20 people able to grow their revenue by using AI to augment and automate much of the sales, marketing, content creation, and back-office tasks that traditionally take human reasoning. Once a process is automated, the scale advantage of the large enterprise becomes neutralised to a large degree.”

Artificial intelligence can automate repetitive tasks and streamline business processes, allowing SMBs to operate more efficiently. A few examples of this include:

• Machine learning (ML) algorithms that learn from machine data and make predictions or take actions without programming. ML can be applied in customer segmentation, demand forecasting, fraud detection, and personalised product recommendations.
• Natural language processing (NLP) enables computers to understand and process human language. SMBs can leverage NLP for automated chatbots and virtual assistants that handle customer inquiries, provide support, and perform tasks like appointment scheduling or order tracking.
• Workflow automation platforms streamline and optimise business processes. These platforms enable businesses to create customised workflows, automate task assignments, and integrate systems. This can improve efficiency and collaboration while reducing manual intervention.

Sales, marketing, service, and personalisation

Artificial intelligence technologies help optimise advertising campaigns, generate content, and automate email marketing, resulting in improved customer acquisition and conversion rates.

• Content creation can be boosted using AI tools. Small businesses don’t always have the resources to create regular content for their website, blogs, or emails. However, ChatGPT or Jasper generate the first draft of an article in a matter of seconds.
• Chatbots, avatars, and virtual assistants that run on AI can help SMBs deliver online personalised customer service at scale, through NLP and ML. These systems can understand the context within a limited scope and can be fully conversant. They can handle customer inquiries, provide recommendations, and offer personalised experiences based on user data, enhancing customer satisfaction and loyalty.

Data analytics and insights

Artificial intelligence technologies can help SMB leaders understand data analytics and make smarter decisions in several ways.

• Process large volumes of business data from every business function using AI-driven algorithms or just inputting the data into one of the tools. This insight can be used to identify patterns, trends, and correlations that may not be apparent to humans.
• Use predictive analytics to forecast demand, optimise pricing, and improve inventory management.
• Financial tools that are driven by AI can analyse financial data to identify cost-saving opportunities and detect anomalies that may indicate fraud or financial risks. These tools are finding their way into enterprise resource planning (ERP) real-time dashboards and visualisations, simplifying data interpretation for decision-makers.

Be Careful: If you are using a public AI tool like ChatGPT or Jasper to evaluate data, make sure it is not confidential data so you can protect your privacy.

The transformative power of artificial intelligence, along with other Industry 4.0 technologies, is reshaping how SMBs operate and compete in an increasingly challenging business landscape. AI is empowering SMBs to leverage many other technologies beyond accounting and ERP software without increasing headcount, unlocking new growth opportunities.

“AI has the potential to really impact a company’s ability to run a well-organised business without needing to hire people,” said Mr Winters.

As AI continues to evolve and become more accessible, SMBs that embrace its potential will foster innovation and compete with greater agility and success.

According to the Reserve Bank of Australia, the manufacturing industry makes up a considerable part of the SMB market (3.4 per cent).

From production scheduling to inventory management, ECI Solutions’s M1 software empowers manufacturers with real-time insights and seamless integration to future-proof their business, increase efficiency and promote productivity.

Learn more about how to embrace digital transformation by getting in touch with ECI Solutions today.