As Artificial Intelligence (AI) becomes ubiquitous and starts to influence every segment of business operations, it is imperative that SMEs embrace AI to gain traction and to remain competitive in the market. What is artificial intelligence? It is the intelligence proved by machines in contrast to the natural intelligence displayed by human beings.
How artificial intelligence helps businesses? Many SMEs are reluctant to adopt AI technology because of the apprehension about high investment and higher technical demand. The fear about machines and technology replacing human workers is also unfounded. The fact is that the benefits of artificial intelligence outweigh the cost of adaptation and the advantages accrue to all SMEs regardless of their sizes. Taking these facets into consideration, here are four ways in which AI can alter the ways in which SMEs conduct their businesses:
Change in HR Processes
HR department is tasked with managing everything from attendance and promotions to payroll of employees in an organization. Maintaining data of this scale is a boring task and may often involve errors. AI has the ability to collect, store and analyze large sums of information, thus, automation of these tasks will improve the productivity and efficiency of the HR department enormously.
HR recruiters can utilize AI-driven recruiting tools like Harver to expedite hiring process by automating the pre-qualification process. These tools screen candidates not only on the basis of skills and experience but also assesses attributes like situational judgment, personality for culture fit, and problem-solving capabilities relevant to the job etc.
Infuse Life into Marketing
Marketing of products is of vital importance for SMEs to create demand for their products and to widen their customer base with the benefits of artificial intelligence. In the contemporary business environment, due to the fast nature of online advertising, there is an increased pressure on SMEs to make their content more personalized and to optimize interaction time since customers expect immediate responses on their queries.
AI chatbots are likely to dominate the online customer-to-business landscape in future as they provide instant and round the clock assistance. They will also help SMEs to better target their market by storing relevant customer data through each interaction.
Forecast Business Trends
Artificial intelligence impact on business by deploying the right AI technology. Data analysts spend massive amount of hours predicting future market trends and economic downswings and yet, human expertise cannot outpace the accuracy and efficiency of artificial intelligence in crafting better strategies for marketing, design, product placement and sale. Use of AI for predictive analysis by SMEs will enable them to increase their market share and to build on their profits.
Overhaul and Modernize Inventory Management
Small business using AI tools needs accurate sales data to manage inventory supplies efficiently. It is important to determine which products are more in demand in order to restock their inventories on time. Incorrect data or wrong market analysis may result in immediate plunge in sales due to lack of supply or may result in overstocking and inventory waste, both of which whittle profits.
To guard against such losses, SMEs should incorporate AI for accurate inventory numbers, to automate supply chain process and to reduce the plausibility of human errors.
Given the multifarious and prolific uses of artificial intelligence in SME businesses, SMEs cannot surge ahead of their competitors without adopting AI. SMEs should recognize that AI can revolutionize their business process tremendously and that AI is a tool, not a threat!