By Nick Mann 🔹
Ever since March 2023 when OpenAI released GPT-4, AI has exploded, forever changing the small business landscape. Now it seems impossible to go even a week without hearing about the next big AI advancement, with countless businesses getting in on the action.
As of late 2024, 40% of companies are already using AI in some capacity to run their businesses, and an additional 42% plan to use it in the future.
But here’s the question. Is AI truly helpful, or is it just hype?
Let’s find out.
The Wide Range of Applications of AI in Business
One of the biggest reasons for AI’s popularity and ubiquity is the sheer number of things it can be used for within a business context. Here are just a few examples.
AI chatbots and virtual assistants to streamline customer service
Content ideation and creation for blog posts, social media, and email
Personalized marketing experiences based on a customer’s behaviors and preferences
Automation technology to speed up redundant, time-consuming tasks like data entry, posting content, and sending emails
Sales automation to suggest other recommended products through upselling and cross-selling
AI-driven analytics to measure business performance and help business owners make data-driven decisions
Sales forecasting where AI crunches huge volumes of data to help business owners see an accurate trajectory
Source: Quixy
And that’s just the tip of the iceberg. AI never sleeps, and new applications are constantly popping up all the time to optimize virtually every aspect of business. If there’s a need, you can almost bet that AI exists, or will soon exist, to meet that need.
How AI Helps
From improving the customer experience to increasing average order value to putting business owners in the driver’s seat when making critical decisions, there’s no denying that AI offers immense benefits.
With customer service, for instance, businesses can provide customers 24/7 access via a chatbot or virtual assistant — something that’s not usually possible with humans. Also, this frees up much of the time for human customer service reps so they can focus on escalated cases while AI handles the more basic requests.
As we touched on earlier, AI can be incredibly helpful for automating repetitive tasks, so your team can concentrate on more pressing objectives like building customer relationships and business growth.
Also, let’s not forget about how helpful AI is for identifying trends and patterns. This technology essentially gives the average person the capabilities of making decisions similar to a data scientist, providing a 30,000-foot view for smart, sound decisions.
Here are some stats for perspective.
“Staff using AI report an 80% improvement in productivity due to the technology.”
“By automating manual tasks with AI, sales pros are able to save two hours and 15 minutes a day.”
“73% of sales pros feel that they’re able to retrieve insights from data they otherwise wouldn’t be able to find without the assistance of AI.”
“One company experienced a 30% growth in customer satisfaction after shifting to AI tools.”
“60% of business owners predict that AI implementation will drive sales growth, while 64% believe it will improve customer relations and increase productivity.”
But what about customer sentiment toward AI? According to research, the vast majority of customers are in favor of it, as it can improve their experience.
One study found that “Consumers are interested in discovering how AI can improve their shopping journey, with 86% wanting to research products or get product information, 79% looking for deals and promotions, and 82% interested in reaching customer service, asking questions and resolving issues.”
Put that all together, and it’s clear that, when used correctly, AI can certainly have some serious benefits for small business owners.
The Hype Aspects of AI
Now that we understand the capabilities and advantages of AI, let’s shift gears and discuss the not-so-great aspects of this technology.
One thing I’ve noticed recently is that because of the high level of competition, many brands are making a mad dash to implement AI in whatever way they can. Even if it doesn’t necessarily tangibly improve operations, they’re still “slapping up” something AI-related to catch the attention of customers because they feel like they have to in order to stay relevant.
When this is the case, it often means time and money end up being squandered to infuse AI into business operations, which only results in a lukewarm reaction. After all, if it doesn’t palpably benefit your business, what’s the point?
Also, some potential drawbacks don’t always get talked about that you should be aware of.
Perhaps the biggest is the initial investment that has to be made to get AI up and running. Say, for example, you wanted to use an AI chatbot to handle the majority of customer service. You would have to pay for a platform, customize it to your specific business operations, train team members on how to use it, and so on.
Another is maintenance. For every paid AI platform you use, there’s an ongoing cost and updates must be continually made to keep it running properly. While most of the maintenance is done by AI vendors, it can still be disruptive at times. And if you’re using several AI tools, the costs can quickly add up.
We should also mention the diminished personal connection that can result from AI implementation. While it’s true that AI can help you serve more customers at one time, there will inevitably be less human interaction and the personal touch that many businesses thrive on. In some cases, the impact will be minimal. But in others, this can potentially erode the foundation that a small business was built on.
Finally, when AI becomes omnipresent in content and marketing, it can limit a business’s creativity. If, for instance, you used to write your own blog posts with your direct perspective and borrowed from your personal experience, this isn’t something that AI can replicate. Or if you inject your unique personality into your marketing materials, you wouldn’t likely get the same oomph when everything is done by a machine.
The Bottom Line
While AI received attention pre-March 2023, that was the definitive moment when it skyrocketed, and it hasn’t slowed down since. Now AI has spread its tentacles to nearly every imaginable area of business, and this is only going to intensify in upcoming years.
Just look at global AI market projections leading up to 2030.
Source: Grand View Research
At the end of the day, deciding whether AI is truly helpful depends on your perspective. But in my opinion, the number of benefits far outweigh the negatives.
You by no means want to haphazardly integrate AI into your small business operations if you don’t truly need it or it’s not going to serve a practical purpose. But it would be foolish to not capitalize on such a powerful technology that’s so abundantly available at least in some capacity.
Therefore, I suggest identifying a few key areas of your business that could benefit the most from AI and exploring options and providers to see what works best for you.
For more guidance on approaching AI and for business advice in general, consider joining Cove. It’s an online community that connects small business owners from all walks of life with opportunities for learning, collaborating, networking, and more. Learn more about how Cove works here.
About the Author
Nick Mann is a freelance writer/content strategist focusing on business, marketing, finance, and tech. Through his content, his goal is to help small businesses generate quality leads to grow and thrive.
