Small businesses must overcome numerous hurdles to become truly sustainable and successful. The slightest competitive advantage could make the difference between success and failure in the unforgiving business landscape. In this regard, AI and machine learning have immense potential to catalyse growth and arm SMEs with that much-needed edge. AI and machine learning were considered advanced tech meant solely for massive corporates or large organisations and conglomerates with deep coffers.
Now, it is time to delve deeper than superficial overviews and understand exactly how both technological advancements can benefit small and medium-sized enterprises (SMEs).
Enhancing Customer Service
Building, retaining and engaging customers is the cornerstone of success for any business. AI and machine learning are becoming increasingly advanced and making a difference, from automating parts of the process to implementing intuitive chatbots and digital assistants. AI and machine learning are making the customer experience faster and more efficient. From impeccable customer support and FAQs to freeing up valuable time and resources within the team, redundant tasks and queries are easily handled. This helps improve customer experience and allows the business to focus on more pressing matters.
Streamlining Operations with Task Automation
While automation is almost synonymous with AI and machine learning today, this function is extremely helpful for a small business or SME. Dealing with recurring or redundant tasks is a pain point for SMEs. There are various tasks that benefit greatly from AI-based automation. Data entry, invoicing, accounts, and administrative tasks are just some of the tasks that come to mind. Automating these tasks can be a boon to SMEs. Not only does it free up time and human resources, but it also helps reduce operational costs because it reduces dependency on staff. Machine learning algorithms can be refined to interpret data, populate databases or spreadsheets and do so much faster than any human employee.
Data-Driven Decision Making
Data will continue to be critical in the larger scheme of business success. In comparison, AI and machine learning make real-time data analytics possible. Collecting and collating data is only one part of it. The real challenge is to derive useful insights from your datasets. That’s where data analytics comes in. Cutting-edge portals like Pulse can help create easy-to-understand, actionable insights from data. Businesses can embrace informed and rapid decision-making. It also provides you with real-time prompts and reminders in case of any discrepancies or anomalies. All of this culminates in decisive decision-making. Businesses are armed with intuitive, actionable insights and can take swift action to capitalise on opportunities or take precautions to avoid bad situations. These insights constitute valuable business strategy and are invaluable to an SME that is looking to grow and expand.
Data-driven decision-making has great potential and can help streamline resource allocation. Leveraging AI-based algorithms can help transform inventory management, avoid overstocking and ensure that you never run out of essential items. Another useful feature is the ability to forecast demand. This allows a business to manage supply and help reduce costs. All of these advantages culminate with increased customer satisfaction. Machine learning can analyse vast amounts of data and identify patterns or discrepancies. Based on these patterns, it can make predictions and automate tasks. This further empowers SMEs to make data-driven decisions.
AI in App Development
AI tools are used extensively in writing, editing and debugging code. This helps speed up the development process exponentially, as AI-based tools can code much faster than a seasoned human developer. The ideal scenario is when developers leverage AI tools and work in tandem with it. This ensures a massively faster turnaround time while also retaining human supervision for nuance. This utility is especially handy when it comes to app development. It empowers SMEs to create apps much faster while promoting efficiency, cost-effectiveness and quicker timelines.
Challenges in AI-implementation
Cost Factor
One of the biggest challenges of implementing AI and machine learning is cost. Most SMEs have limited budgets and resources, making it difficult to invest in AI and machine learning. To circumvent this challenge, SMEs can start small. There are several economical AI solutions. Investment can be scaled up as per growth.
Lack of Skilled Staff
AI and machine learning is a complex subject. It can be exceptionally difficult for SMEs to implement without a dedicated team in place. Thankfully, there are tech platforms that offer user-friendly platforms that do not require technical knowledge. Pulse is one such platform that helps convert data into actionable insights, along with a suite of features that can help SMEs make data-driven decisions, monitor their financial health, and leverage external funding when their credit rating is strong enough.
Data Privacy Concerns
SMEs need to focus on data privacy and ensure compliance with regulations like GDPR. This not only helps build trust but also helps protect customer data. Clear data governance with AI utilisation is essential for sustained success.
Zalando is a European digital fashion retailer. It uses AI algorithms to recommend products based on customer preferences. This improves the customer experience and helps bolster sales. Analysing customer behaviour allows them to provide custom recommendations and improves conversion rates.
Revolutionary Insurance: It is a small insurance startup that harnessed ML algorithms to assess risks more efficiently. It also helped streamline claims processing. The initiative helped them offer competitive pricing along with improved customer service. In this manner, they were able to compete with bigger brands.
Conclusion
With the evolution of technology, the entry barriers for AI and ML are reducing. It is far more feasible for SMEs to implement AI and ML without burning a hole in the budget. If you would like to harness the awesome power of AI and ML through a cost-effective, economical and user-friendly platform, contact us at info@mypulse.io to book your demo today and take your SME into the big leagues!