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AI allows small businesses to save time and money that can be focused on other areas.
While many business owners are still trying to figure out exactly what artificial intelligence (AI) means for them, a new report from the Small Business and Entrepreneurship Council (SBEC) shows that small businesses The majority use AI tools and have been shown to significantly improve efficiency. And save hundreds of billions of dollars a year.
The SBEC survey found that nearly half (48%) of small businesses started using AI tools in the past year, and 29% reported using AI tools for one to two years ago. SBEC CEO Karen Kerrigan said: “Small and medium-sized business owners are rapidly embracing AI, with a variety of tools and applications helping them increase profitability, productivity, and competitiveness at a time when they need such support. 93% of business owners agree that AI tools provide cost-effective solutions that drive cost savings and improve profitability.”
AI tools for your small business toolbox
The first AI tool to gain significant attention was ChatGPT. Like all AI tools, it can digest vast amounts of data and instantly create articles about the questions asked. (However, it's not always 100% correct, so it's important to verify your behavior.)
There are also AI tools for almost every task a business needs, including marketing and sales, business planning, financial management, and human resources, often at little or no cost. Here are some tools to try.
- up metrics—Business plan creation tool with 400 templates to choose from
- click up—Cloud-based project management tool
- jasper—Content generator for articles, blogs, social media posts, and marketing copy
- Zia from Zoho—Sales tools for lead generation, lead management, data collection, and sales copy writing
- Chatspot by HubSpot—Free sales and marketing tools even if you're not a HubSpot user
- Darui 2—Create realistic images from written descriptions for creative development
- Manatar—HR recruitment tools
- motion—Calendar tool to track time and create itineraries
- lumen 5—video creation tools
- Otter.ai—Meeting assistant tool to record conversations, take notes, transcribe interviews, and create summaries
AI can save small businesses time and money
SBEC's research found that AI has helped small and medium-sized businesses save significant time and money, allowing them to direct resources to different areas, including:
- 41% use AI to free up their time and that of their employees for higher-value work
- 39% are investing in AI tools for innovative solutions for customer engagement and retention
- 37% used AI cost savings to invest in other new technologies
- 36% are keeping prices stable for their customers in this inflationary environment
- 34% are using cost savings to pursue business growth opportunities
- 25% took advantage of cost savings to increase wages and benefits
- 25% are using cost savings to free up capital for emergencies or other purposes.
- 20% used cost savings to pay off debt faster
Workforce issues driving AI adoption
In addition to time and cost savings, the main drivers for the adoption of AI tools are the tight labor market, which is the biggest problem facing small and medium-sized enterprises today. As a result of the coronavirus, more small businesses are having to deal with finding and retaining employees. Unemployment rates are at historic lows and remote work remains widespread, allowing many workers to take jobs across the country and leaving local retailers, restaurants and manufacturing plants with no shortage of talent. There are fewer options.
This has also led to unsustainable wage increases for workers in small businesses, as workers in small towns can work remotely and still earn big-city wages. According to the SBEC report, 25% of small businesses say they are turning to AI tools due to rising labor costs. 19% said they moved to AI to augment the skills of existing workers or because they were unable to find skilled workers.
In addition to employee concerns, nearly one-third of companies surveyed by SBEC cited the need to compete with other companies, including large corporations, as a reason for turning to AI.
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The downside of AI for small businesses
AI tools are here to stay, but they are not without their drawbacks.
Lack of creativity: First, the information provided by AI writing tools is often wrong, and the writing style can be stilted and lacking in the human element (as a writer, I have to say this!). The same lack of creativity is a common problem with many AI tools as well.
Lacking an emotional element: AI also lacks the emotional element that humans bring. Too much emotion in the workplace can be harmful, but when managing people and working as a team, empathy and decision-making based on lifelong experience are key.
Robotics is expensive: If we're talking about robotics, it's still an expensive proposition. While standard robots that can perform a single task have been around for a long time and can be affordable, robots that can think of and perform multiple complex tasks are still very expensive.
Skynet Terror: The horror of Skynet, the AI company that took over humanity in an iconic movie terminator-is real. Our government is working hard to legislate and regulate against a similar dystopian nightmare. We will discuss this in more detail in a future article.
Consider leveraging AI in your business
The onus is now on businesses and customers to consider these AI tools. In our economy, where time and money are both important, AI can help with both. And just for the record, no AI tools were used to write this article.
About the author
Neil Hare is a lawyer GVC strategy, specializes in small business policy, advocacy, and communication campaigns. Follow him on Twitter @nehare And even more linkedin. Read more of Neil's articles and detailed bio allbusiness.com.
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