The AI crescendo is rising up a note with every passing day, and irrespective of the initial excitement and resistance, industries are finally coming to terms and reasoning with this new dawn of technology. I am not going to deny that it is a difficult juncture. On one hand, large conglomerates have adopted AI on a massive scale, which has resulted in magnanimous waves of layoffs, but on the other hand, it presents a considerable opportunity for small and medium enterprises (SMEs) to maximize their profits and grow at a faster rate. According to a report by the U.S. Chamber of Commerce and Teneo, almost 98% of small businesses are using a tool that is enabled by AI, and 40% claimed to be using generative tools for marketing and other purposes. That’s a telling data point. It is a testament that AI is the future of commerce management, and SMEs in countries like India need to adopt it stat.

In this article I want to talk about the possible extent of integration of AI into small businesses and how it can boost the growth of an SME. I am also going to talk about some start-ups that are trying to enhance the use of AI and provide small business owners with curated AI solutions.

Creating new playing fields

Ever since the initial AI chatter in public forums appeared, AI has been seen as the Goliath’s weapon. A destructive corporate force against small businesses and employees, aiming to cause havoc in the job market and business playing field. A super-efficient monster out for blood. But there is another facet to the boom of AI, contrary to the all-encompassing paranoia. We have now entered the era of the democratization of AI. A supercomputer in our palms and on our laps that is proving to be David’s sling – in continuation with the David and Goliath analogy.

SMEs all over the world are adopting affordable AI models to speed up and automate the less exciting aspects of owning a business. AI is helping business owners in significantly reducing the budget and focusing more on the growth of their business. It is creating a new level playing field, even in the face of corporate giants. For instance, some small-scale clinics have adopted Skit.ai for automated calls, follow-ups, reminders, etc., which has helped in significantly reducing no-show rates. It is a model similar to what big corporate hospitals use.

AI for E-commerce SMEs

E-commerce is another major field for the AI magic wand. From personalized shopping recommendations to customer support, AI is helping in a major reduction of cost and effort for small business owners. Many AI platforms like ChatGPT, Gorgios, Tidio, etc. can simply be integrated into Shopify and other e-commerce platforms for seamless AI-based customer support. Platforms like Shopify also provide AI-based tools that give product recommendations to users based on their shopping history and, in turn, increase the conversion rates. There are some other tools like the Zoho Inventory AI that uses past seasonal data to predict sales and help SMEs maintain adequate stock. Apart from this, there are tools like Jasper AI that automate the SEO process and help businesses reach a wider customer base without making a sinkhole in their pockets.

The artificial accountant

AI is the financial assistant of the new world, especially in tasks that take a lot of mechanical time. Small business owners can adopt AI assistants that are capable of keeping up with expenses, syncing bank transactions and maintaining ledgers without the need of a human bookkeeper. These tools not only cancel the requirement of extra resources but also minimize the risk of errors in the bookkeeping. These tools can do what would otherwise take at least 2-3 people to do. These can generate invoices, track dues, and even send gentle reminders – ensuring seamlessness in both B2B and B2C relationships. In India, AI-based and -backed platforms like Zoho Books and ClearTax go a step ahead and sort even GST filings by tracking input credits, calculating liabilities, and significantly reducing compliance stress. Other AI-based tools are also capable of making predictions such as cash shortages and expense leaks, answering questions like, “Can I afford to give XYZ as a Diwali bonus?”

These tools are doing things in a minute that take an accountant hours to do. With absolute accuracy, reducing costs and providing further insights that help an SME owner make better financial decisions.

Turning voices into moves

One of the most important aspects of owning an SME is knowing what you are doing wrong and what you are doing right. Customer feedback, if analyzed and used smartly, can turn Pluto from a dwarf to a planet. This is where AI steps in. Contemporary AI tools are not only capable of a textual analysis of customer feedback, but they can also do a sentimental analysis and flag urgent concerns. Tools like Qualtrics XM, Survicate + ChatGPT Integration, etc., not only provide a detailed analysis of the customer feedback but also suggest ways in which business owners can improve their strategy. These tools are being used all over the world, from salons to coaching centers and from e-commerce to clinics, to ensure improvement in the products and services and overall growth. For instance, an AI-based tool can analyze the Google reviews of a café and provide insights like “better training for staff required” or “add this item to the weekend special menu”.

Free yourself to be yourself

Now that we have discussed most aspects of AI helping SME owners, let’s shift our focus to something that is invaluable – time. Away from the business of cost reduction and efficiency, the most important thing that AI ensures is time. Time to build relationships, time to think, time to understand your customers, to cater to their needs, to welcome them with open arms and make them feel at home in your place of business. Unlike large corporate businesses, SMEs can only have a few departments. Oftentimes, the owner gets buried under the weight of operational chaos, and the growth of the business succumbs. But with AI, such situations can easily be avoided. With AI, a salon owner can avoid manual appointment taking and focus on the care and grooming of their customers throughout the day, a café owner can happily welcome their customer without worrying about running out of supplies, and an e-commerce owner can plan and strategies the growth of their business instead of swapping the phone between their ears. AI is giving SME owners a breathing space, a silent and efficient companionship, and a partner in business that never asks for a share of the business.

As I mentioned earlier in the article, AI is the sling in the hands of David against his fight against the Goliath conglomerate. It is a decisive tool, a revolution after a revolution. I am not a fan of AI in arts, academia, or literature – I am conservative in that sense. But, when it comes to SMEs, I can only see a good and bright future in the embrace of AI. This new technology might reduce the workforce, but on the brighter side of the moon, it can help create more businesses and new types of businesses. Those who are adopting it aren’t just keeping up with the market – they are stepping ahead.