For small and medium-sized enterprises (SMEs), the trend of creating AI divisions might seem out of reach at first glance, but the principles behind this shift can be highly relevant and applicable. SMEs, much like larger non-tech corporations, can leverage artificial intelligence to streamline their operations, enhance customer engagement, and gain a competitive edge—even without the extensive resources of big corporations. By strategically implementing AI, SMEs can adopt a model similar to Disney, ADNOC, or Keppel Corporation on a scale that fits their size and budget.
Building an AI Strategy for SMEs
The first step for an SME looking to integrate AI is to identify specific business areas where AI can deliver clear value. Unlike large corporations, SMEs often need to focus on targeted solutions rather than building an entire AI division. For instance, a retail SME could use AI to optimise inventory management, predicting demand for specific products and reducing waste. A service-oriented SME might use AI-powered customer service chatbots to handle basic inquiries, freeing up human employees for more complex tasks.
AI can also be applied to marketing and customer relationship management. Tools that analyse customer behaviour and preferences allow SMEs to create more personalised marketing campaigns, resulting in improved customer retention and engagement. For example, an AI-driven email marketing tool could segment audiences and tailor messages based on past purchases, increasing the likelihood of repeat business.
Utilising Off-the-Shelf AI Solutions
One advantage SMEs have today is the availability of off-the-shelf AI tools. Unlike larger companies that may develop proprietary solutions, SMEs can leverage readily available tools from companies like Google, Microsoft, and Amazon, which provide affordable, cloud-based AI services. These platforms offer everything from natural language processing (for chatbots and customer service) to predictive analytics and data visualisation tools that can be integrated with minimal technical expertise.
For example, Google’s AutoML tools allow businesses with limited AI expertise to build custom machine-learning models. Similarly, Microsoft’s Azure AI and Amazon’s AWS AI services provide robust capabilities, from customer service automation to advanced data analytics. By using these tools, SMEs can avoid the high costs of developing AI from scratch while still reaping the benefits of AI-driven insights.
Focusing on Core Benefits: Efficiency, Customer Insight, and Agility
SMEs can take inspiration from larger companies by focusing their AI efforts on three primary areas: operational efficiency, customer insights, and agility.
Operational Efficiency: Like large enterprises, SMEs can use AI to automate routine tasks, allowing employees to focus on higher-value activities. For instance, using AI-driven tools to manage invoices, handle payroll, or process orders can reduce human error and cut down on time-consuming manual work. This approach is especially valuable for SMEs that may have limited staff and need to maximise productivity.
Customer Insight: AI-powered analytics platforms can help SMEs better understand their customers without needing a dedicated data science team. With tools like Google Analytics, HubSpot, or Salesforce’s Einstein AI, SMEs can gain actionable insights into customer preferences and behaviour patterns, enabling them to tailor their products, services, and marketing strategies more effectively.
Agility: One of the significant advantages SMEs have is the ability to be agile. While larger companies may take time to implement new AI strategies across massive structures, SMEs can often pivot faster. By adopting AI in areas like demand forecasting, inventory management, or even personalised marketing, SMEs can respond to changes in market conditions more quickly than their larger competitors.
A Scalable AI Model for SMEs
Ultimately, the model larger companies are using to integrate AI—by creating specialised units or task forces—can serve as inspiration for SMEs. However, instead of building an entire AI division, SMEs can think of AI as a flexible, scalable tool they can gradually expand as needed. A dedicated AI “function” might begin with just one or two individuals or even an outsourced team, focusing on projects with measurable returns.
As technology continues to evolve and AI tools become even more accessible, SMEs have more options than ever to implement AI solutions. By embracing these technologies thoughtfully and focusing on manageable, targeted applications, SMEs can adopt a similar AI-driven approach as industry giants, enhancing their business operations, improving customer interactions, and staying competitive in their respective markets. AI, once viewed as an exclusive asset for large tech companies, is now an achievable and powerful tool for businesses of all sizes.