The Impact Of AI On Small Businesses

by | Mar 14, 2023 | General

So let us talk about the robot in the room.  It is not going anywhere, and it will impact you in some or other way.  Initially I looked at it as if it were the enemy, but I have since realised I am already using some form of automation with my WhatsApp quick replies.  And yes, being in HR I will never want the people to be out of work in any country, but specifically in our country where the unemployment rate is 60%.  Yes, 60% if you account the workforce that has stopped looking for work. 

Are we automation ready?  It is important to understand that the prediction is that by 2030 Gen Z will make up 30% of the workforce.  Yes, you might say it will not happen so soon in South Africa, but you may have children that want to work overseas.  All I am saying is that we must not fear AI and or automation, but rather look at ways that you can better your business through it.        

Artificial intelligence (AI) can have a significant impact on small businesses, providing them with tools and capabilities that were previously only available to large enterprises. Here is some ways AI can affect small businesses:

  1. Automation: AI can automate repetitive tasks, such as data entry or customer service, which can save small businesses time and money.  It will never be able to replace the relationship, so let your people be skilled to focus on relationships.
  2. Personalization: AI can help small businesses personalize their offerings to individual customers, creating a more tailored customer experience.
  3. Predictive analytics: AI can help small businesses predict market trends and customer behaviour, allowing them to make better business decisions.  We must analyse our data.
  4. Competitive advantage: Small businesses can use AI to gain a competitive advantage by improving efficiency, productivity, and customer satisfaction.
  5. Cost reduction: AI can help small businesses reduce costs by automating tasks, improving resource allocation, and reducing errors.
  6. Improved customer service: AI-powered chatbots and virtual assistants can provide 24/7 customer service, which can improve customer satisfaction and retention.
  7. Enhanced marketing: AI can help small businesses optimize their marketing efforts by analysing customer data and creating targeted campaigns.

Overall, AI can help small businesses become more efficient, effective, and competitive in their respective markets. However, small businesses should be cautious when implementing AI and ensure that they have the necessary expertise and resources to properly utilize and maintain AI systems.

Let me know if you want to have a coffee chat about this, I would love to hear your opinion.

Arina Fyfer
082 745 6779 /