Integrating this evolving technology into businesses has many pros and cons but to discover them all, we must fully understand how these tools work.
Depending on which media you subscribe to, you’re either reading about how Artificial Intelligence (AI) will end civilisation or about how it will revolutionise business.
I believe 2023 is the year we see AI significantly affect small businesses. I’m also mindful we need to approach new platforms with eyes wide open and a dose of healthy scepticism.
Take ChatGPT as an example. I’m the first to advocate for jumping on and testing out everything this platform offers. I’m also clear with my clients that it essentially thinks it’s a toaster until you tell it otherwise. You, my dear business owner, remain firmly in the driver’s seat for how you choose to use it. And, like learning to drive, it is entirely up to you to know the manual back to front, if you want to see real benefits.
“I see a greater increase in jobs occurring because of AI.”
Before you shout “Bah Humbug!” and close your mind to new AI, please consider the AI tools you are already using and the enormous value they have brought to your business.
When was the last time you asked Google to find a new destination? What about locating a coffee shop open near you?
That’s Artificial Intelligence.
Are you using Xero, MYOB, Quicken or another cloud-based accounting platform? Are you running financial reports or generating your BAS? You’re using AI.
Maybe you schedule your social media content or have a chatbot connected to your website or social platforms. Perhaps you’ve already got them answering questions like your opening hours.
Yep, AI.
This latest evolution, particularly the natural language processing platforms (among which ChatGPT has received the greatest publicity), is just the newest development in the tools we are already using.
Once you realise you’re already reliant on some very sophisticated technology, it’s only a small step to test the waters of what else AI can offer.
How would you like to automate some routine tasks? Gather customer insights? Or quickly and easily analyse market trends to make better business decisions?
AI is evolving at lightning speed. You can either grab your surfboard and ride the wave or,, well, pack up your board, go home and tell people how unfair it was that your business never worked out.
I hate being that black-and-white, but right now there’s a line in the sand challenging you to adopt and adapt to new AI.
At this article’s start, I promised a healthy dose of scepticism. So, let’s look at some of the potential pros and cons.
Pros and Cons
Pro: Automation of repetitive tasks
I questioned you earlier about your use of cloud-based accounting platforms. You may have yet to consider a lot of the heavy lifting they do: tracking expenses, generating reports, running wages and spitting out BAS saves you considerable time each month and reduces the risk of errors. Have you ever calculated how much time that one little tool gives you back each month?
What about customer service? Responding to customer enquiries promptly and efficiently is critical to building loyalty and maintaining your reputation. However, handling customer service inquiries can be time-consuming and pulls focus from other essential tasks.
We’ve seen the rise of AI chatbots in handling enquiries and providing quick, efficient responses. These chatbots are easily integrated into a website or your social media and it means your customers get the information they need at a time that suits them.
Chatbots can be programmed to respond to a wide range of common questions, such as opening hours, business location, order status, shipping information and product specifications. They can provide customers with recommendations and personalised information based on their previous interactions with your business. This all builds your relationship with customers and increases their satisfaction.
Let’s call that a win for AI.
Con (kind of): Privacy and cyber-security
We’ve become hyper-aware of the damage to a brand’s reputation when there’s a security breach. Trust takes a long time to build and a short time to ruin.
With the growth of AI and our dependence on the interconnectedness of our systems, data privacy and security should be top of mind. AI technologies can collect and process sensitive data, including customer names, addresses and credit card numbers. How your business handles, stores and shares this information is something for serious consideration.
While I’ve placed security in the ‘con’ category, it’s more something to remain vigilant about. Scammers and hackers are not going away, so we must implement robust cyber-security measures to protect data and comply with relevant privacy laws and regulations.
Pro: The ease with which AI can pull customer insights
AI-powered marketing tools can quickly analyse vast amounts of data to uncover patterns and preferences. This means we can hyper-personalise marketing strategies to provide a more customised experience.
Used well, these insights lead to increased client value, ‘stickier’ customers and new product or service opportunities. AI-powered analytics will quickly and easily allow you to analyse market trends and stay ahead of the competition by making informed decisions around product development and pricing.
Let’s chalk that one up as (another) win.
Con: Potential impacts on jobs or wage stagnation
This is the ‘Chicken Little’ of all AI terror-induced arguments. Let me share my view (which is not necessarily shared by this publication). AI will replace some of the more tedious data entry-style roles but I see a greater increase in jobs occurring because of AI. If you look online right now, you’ll see a new role emerging for ‘prompt writers’. These people are the critical thinkers learning to manipulate and get the best from ChatGPT and the like.
AI may impact your wage overhead if your business has previously required numerous data-entry roles. You will need to consider how to support, encourage and train staff to become the conduit between AI and your business.
Let’s call that ‘the one to be mindful of’.
Pro: Inventory management overhaul
AI-powered inventory management systems can provide valuable insights into your business’s performance. From sales trends to product popularity and customer behaviour, these insights allow your business to make informed decisions about product offerings and marketing strategies. The systems can automate the process of reordering products, reducing the risk of stockouts and improving the overall efficiency of your supply chain.
We’ll take that as a win for productivity and profitability.
Con: AI implementation can be costly and time-consuming
Time will be the most significant con for many small-business owners. With new and emerging technologies, we need to invest in resources to learn how best to use them.
Some platforms require a financial investment up front, while others impact on our productivity while we learn to integrate them with existing systems.
There is no way around this; it will definitely impact your business – at least in the short term.
Let’s wrap things up.
Life is never as simple as saying ‘AI good’ or ‘AI bad’. We must weigh all the pros and cons around further implementing AI into our businesses.
The important thing for 2023 will be to remain curious and look for ways to reap the many benefits AI has to offer. That means we need to learn all about it first.
This article first appeared in issue 40 of the Inside Small Business quarterly magazine
