The effect of COVID-19, the pandemic nationwide, was inevitable and became a catalyst for every business's digital transformation, irrespective of a large, small, or medium-sized business. 2020 saw a boom in digital transformation and escalated demand for artificial intelligence (AI). A few years back, artificial intelligence for small businesses was just a buzzword for owners, and today it is a new reality of our day-to-day life. Many companies have recognized the extensive benefits of AI. As the growing power of AI for small business owners has been considered, they have integrated them to achieve their goals.
Artificial intelligence, also called machine learning, offers small businesses the opportunity to become profitable, efficient, and effective. With time and evolution in technology, AI delivers results and has become affordable for small businesses. The unprecedented nature of the pandemic crisis brought in a set of new challenges and forced small companies to change and improvise their business strategies. This crisis led AI and machine learning to play a substantial role in various aspects of businesses.
According to statistics, the artificial intelligence industry will be worth $190 billion by 2025, with global spending on AI systems already reaching $57 billion by 2021. The machine learning and deep learning segment accounted for nearly 65% of the market in 2019.
According to ReportCrux Market Research, the global demand for artificial intelligence in the IoT market estimated to be around $ 2.64 billion in 2019, revenues are expected to be around $ 15.72 billion by the end of 2027, representing a 25.0% CAGR from 2020 to 2027.
Moving forward, before you hit the core topic of this blog, here are few additional aspects you need to know about AI and small businesses.
AI and small businesses
Today AI is the new headline of every business news and has become a prevalent technology adapted by almost every industry. However, before delving into the implications of machine learning and artificial intelligence for small businesses, let me throw some light on what artificial intelligence (AI) and Machine Learning (ML) are.
AI is creating computer systems capable of performing tasks that generally require human intelligence, such as visual perception, speech recognition, decision-making, and language translation.
Machine learning is defined as “an artificial intelligence application that allows systems to learn and improve based on experience without being programmed automatically.”
AI and machine learning have become a mainstay of the new business world. Yet, as per the common misconception, this technology is still considered for bigger businesses with big budget to spend. However, as technology advances, artificial intelligence for small businesses has become more affordable, making it an industry reality for them as well.
According to the 2018 Vistage survey on the role of AI for small businesses, 13.6% of small-to-medium companies (SMBs) are currently using AI technologies to improve business
operations and customer engagement. In addition, according to another survey of CEOs from small and medium-sized businesses, 29.5% of CEOs support AI technology.
Artificial intelligence has gained trust from few big names such as Bill Gates and Elon Musk.
AI and deep machine learning can be implemented through AI tools and AI software across different parts of business operations. AI tools help streamline all the processes of the business, thus transform the industry. AI tools for small companies benefit in various ways, including helping to improve sales and marketing efforts, improving recruitment and HR activities, and automating customer service and communications.
Here is how artificial intelligence (AI) can help your small businesses improve your performance efficiency.
Top 5 artificial intelligence recommendations for small businesses in 2021
Since the digital approach towards business operations, machine learning and artificial intelligence for small business operations are changing. However, it necessitates a well-planned marketing strategy for small businesses
to maintain a personal touch in their approach. As a result, customer-relationship management (CRM) systems play an essential role in gathering customer data across various omni-channels
such as email, social media platforms, and phone. This customer data aids in the improvement and automation of the sales process.
HubSpot CRM and Salesforce have incorporated AI into their technology; these AI-infused CRM for small businesses can help their owners in analyzing customer feedback. As a result, marketing and lead generation activities will be adjusted based on that information.
AI-infused CRMs not only improve lead generation results, but they have also begun to demonstrate how AI can be used to acquire marketing and sales-relevant insights, as well as to improve the customer acquisition process.
Effortless data-driven predictions and decision-making
Data plays a key role for businesses in the decision-making process. The data-driven approach helps to improve decisions, but for this, the companies need to recognize and adapt artificial intelligence (AI) into their workflow. Data holds the insight that enables better decisions, integration of AI and machine learning in workflow validates effortless data-driven predictions and more robust decision making for further actions.
The question is, how does AI help in the decision-making process based on data? Here is the solution; firstly, AI examines massive amounts of data and then provides insights to business owners, who make decisions based on this information. Then, do you see how artificial intelligence for small businesses in workflow simplifies decision-making and makes data-driven predictions with ease.
Application of artificial intelligence (AI) in human resource
The human resource was the most unexpected department into which artificial intelligence (AI)
crept. Effective implementation of AI tools in human resources helps to streamline the hiring and onboarding process. Furthermore, it is beneficial to obtain employee feedback on how HR can improve the hiring process.
AI tools for small businesses offer their marketing teams to handle repetitive and tedious tasks like data entry, cleaning up extensive data, and testing sales campaigns' efficiency. In addition, artificial intelligence for small businesses empowers them to optimize their staff output.
AI-powered customer service
The big players in online retail are no longer the only ones. Small and medium-sized businesses are also gradually becoming a significant part of selling their products or services on an online portal. In the form of conversational platforms such as chatbots, IVRs, and visual bots, AI can enable proactive customer self-service. First, however, it is necessary to develop personalized customer service for their satisfaction. This can be done with the help of integration of the most used AI-powered chatbots.
Many small business owners are investing in this process to provide customer communication and service. Chatbots use natural language (NLP) processing technology of the machine learning tool.
Since the introduction of deep learning in AI, it has become a need of an hour to deliver better results to customers, as approximately 30% of all online retail transactions are made on a mobile phone. Most small businesses are utilizing AI to provide customers with first-hand product experience.
According to Gartner, “46% of SMBs (surveyed) are currently using or plan to use a chatbot within the next two years.” Another 21% of the small and medium-sized businesses polled were evaluating chatbots for use, according to the study. Chatbots is like a sales and customer rep working 24/7 for you.
Among the many artificial intelligence for small businesses available, this relieves stress and allows you to devote your time to more critical tasks. For example, with AI-powered customer service, you can simplify many tasks, facilitate customer communication and customer experience.
Due to the COVID-19 outbreak, most businesses turned online, giving rise to online data storage by companies both big and small. Thus, exposing them to new cyber threats to business and consumer data, which are called cyber-attacks. One of the most talked-about cyber-attacks in 2019 is ‘Ransomware,’ a form of malicious software that is often deployed via social engineering tactics.
According to the survey, ransomware attacks increased 350% globally in 2018, and ransomware attacks are expected to cost $6 trillion per year by 2021.
For small businesses
with a minimal budget to spend on cybersecurity or sudden ransom, such attacks can be devastating. According to recent reports, 60% of small businesses that suffer a cyberattack go out of business within six months. But luckily, cybersecurity powered by AI may provide some relief from these attacks. AI-powered cybersecurity programs look for unusual activity or cyber threats detected and can stop the attacks or raise alerts earlier.
You can revitalize and empower your small business by employing artificial intelligence for small businesses to meticulously maintain an account database, stay in touch with customers, or protect your company from hackers.
AI is the future of businesses
In the future, AI can transform how businesses interact with customers, compete with one another, and grow in the market. On the other hand, the pandemic served as a catalyst for businesses to embrace the business benefits of artificial intelligence (AI). As a result, what would typically take years to implement on a large scale was completed in a matter of weeks and months. According to survey by Salesforce research, 51% of customers say their expectations of companies are now being influenced by AI.
According to a report, the global artificial intelligence (AI) market was worth 28.42 billion USD in 2019. According to the same report, the AI market will be worth 99.98 billion USD by 2023, with a compound annual growth rate of 34.86%.
Machine learning and artificial intelligence for small businesses help their owners reduce manual work and increase productivity with little effort and in a short period.
Can small businesses use AI?
Yes, small businesses can use AI and need an hour to implement it in their process. Small business owners can use artificial intelligence (AI) to provide the first-hand experience of their products or services to their customers. AI helps small businesses to handle repetitive and tedious tasks with great ease.
How can small businesses benefit from AI?
Implementation of AI in a small business can help to improve sales and marketing, streamline HR tasks, automate customer communication, provide cybersecurity from unpredictable threats, etc. Thus, artificial intelligence for small businesses can completely transform their position in the market.
How is AI implemented in small businesses?
AI technology can be implemented in small businesses using various AI-based tools, applications, or software.