In a world where machines are able to learn and make decisions, AI has completely transformed human perception of reality. Due to its revolutionary impact, AI has permeated the business market, enabling small and medium-sized businesses (SMBs) to compete with large corporations.
Contrary to popular belief, AI is not exclusively reserved for large companies. Thanks to its affordability and accessibility, SMBs have also utilized it to enhance operations, optimize marketing with analytics, and deliver personalized customer service.
However, many small and medium-sized businesses struggle to utilize AI due to costs, lack of in-house expertise, and uncertainty about its integration into their business models. With so many AI options available, these businesses often feel overwhelmed and unsure whether to invest in ready-made solutions or create custom ones. AI should be seen as an investment that increases the efficiency and productivity of a company, and neglecting AI adoption could mean trailing behind competitors.
This blog piece explores how small and mid-sized firms can leverage AI effectively starting small, aligning with their goals, and developing a long-term strategy for sustainable growth.
AI as a Competitive Advantage for SMBs
All over the world, small and medium-sized businesses (SMBs) are increasingly adopting AI to handle repetitive tasks, saving time and money. It helps companies make better decisions by analyzing vast amounts of data, understanding customer needs and spotting irregularities. According to the survey conducted by the U.S. Chamber of Commerce and Teneo, 98% of SMBs are reported to use tools enabled by AI, and 40% said they’re using generative AI tools like chatbots and image creation, which is roughly double from previous year’s survey.
Despite encouraging figures, many small and medium-sized businesses with teams of 10-15 people are still grappling with the idea of whether AI is the right fit for their business and often find it hard to opt for necessary in-house expertise. The focus of a company should be to use AI to complement and not to replace, and that is to find the right balance between automation and the human touch.
Here are some examples to show how SMBs have incorporated AI in their systems to help the business expand, and stay competitive and productive:
- 3 Men Movers: More than 25 million Americans move each year, and as such there’s always demand for a company to help moving things from one place to another securely and effectively. 3 Men Movers uses AI-driven cameras to detect distracted drivers and optimize route planning, leading to 91% accuracy in detecting distracted driving and preventing 80% of distractions. This has allowed 3 Men Movers to identify optimal routes, avoid liability and reduce risks.2
- Amarra: In the ever-changing e-commerce sector, companies need to be creative, competitive, and nimble, and AI in recent years has proven to be of a great service. Amarra, a New Jersey based company, specializing in manufacturing formal gowns and dresses, has incorporated AI to write about product descriptions, cutting down content creation time by 60% with no loss in quality. It also integrates AI to analyze customer review data across platforms, which helps the company to understand shifts in buying behaviors and customer preferences.3
Readiness & Data Quality Matter
- Get your data in order: Utilizing AI in small and medium-sized businesses (SMBs) demands a foundation of clean, accurate data. One of the major challenges these small businesses face is the lack of structured data. Unlike large corporations, which have dedicated teams for data management, SMBs need external help and support to clean and prepare their data for AI adoption. Outdated data can generate poor data quality which leads to wrong predictions and imprudent decisions. Therefore, SMBs should focus on organizing their data before adopting AI tools to ensure accuracy. According to Forbes, focusing on the data quality right from the onset allows SMBs to make smart business strategies and be financially stable and successful.
- Start small: It is advisable to start with small, manageable AI projects, and focus on specific areas like automating customer inquiries or analyzing sales trends. Through this method, SMBs can examine AI tools, learn from their functioning, and make necessary adjustments before expanding their operation. This approach strategically minimizes risks associated with data processing, enables SMBs to build trust and confidence in AI technologies.
An investment, not a Cost
Many small and medium-sized businesses (SMBs) hesitate to adopt AI, fearing it being inaccessible and expensive. However, the fear of high costs often sidelines the long-term benefits, and efficiency gains that AI offers. AI should be viewed as a strategic investment that saves time and cost, increases efficiency, and boosts productivity. By automating repetitive tasks, businesses can focus more on growth and efficiency.
The misconception that AI requires high upfront costs and technical expertise is common among SMBs. Many AI solutions operate on pay-per-use or pay-as-you-grow model, making them affordable. Cloud-based AI services allow SMBs to scale up AI adoption based on their needs and budget without worrying about the need for heavy infrastructure investment.
Studies show that those who do not adopt AI run the risk of costing more in the long run. Small & medium-sized businesses already using AI are making better market related decisions, boosting their operations, and outperforming their competitors. According to Salesforce, 75% of SMBs are at least experimenting with AI, with growing businesses leading in adoption (83%). This gap appears to widen as 78% of growing SMBs plan to increase their AI investment next year.5 To stay competitive, SMBs need to view AI as an investment that fuels productivity and long-term success.
AI Talent Augmentation & Choosing the Right Partners
Many small and medium-sized businesses lack in-house AI expertise, meaning they need to adopt AI tools that complement their existing skill force rather than replacing employees. This enables them to harness the potential of AI without changing the outlook of the company or overhauling the team structure.
Instead of focusing solely on building AI solutions on their own, SMBs should partner with experienced AI providers to save time and resources. Outsourcing AI requirements is way more budget-friendly than hiring a full in-house team, enabling SMBs to divert their energy and focus on more pertinent issues. iQuasar offers AI augmentation services that provide businesses with quick access to AI Engineerssacross emerging and core technologies, without the overhead of hiring. Their AI support integrates seamlessly with existing workflows, ensuring no disruption, and they offer continuous delivery support for quality assurance and in-depth security testing. A study by Deloitte shows that businesses can save up to 60% in operational costs by outsourcing AI development.6
In choosing an AI partner, SMBs should opt for providers with industry-specific experience and a proven track record. It is also important to prioritize partners who provide end-to-end services, from strategy to execution, and more importantly align with your company’s culture.7 By keeping these important steps in mind, SMBs can effectively use AI for growth and competitiveness.
AI: A Long-Term Vision
Adopting AI is a strategic, long-term goal for small and medium-sized businesses (SMBs), requiring patience and realistic expectations. Many companies expect an instant result, but AI becomes beneficial when it is refined over time. Instead of viewing AI as a one-time solution, SMBs must acknowledge it as an evolving tool that improves with experience.
Effective AI adoption doesn’t take place overnight. SMBs should start with small, manageable projects, learn from early experiences, and progressively scale. Testing AI in low-risk areas like customer support automation or internal workflow optimization allows businesses to incorporate AI into more essential tasks over time. By adopting AI’s iterative nature, SMBs can expand their operations and stay competitive in an evolving market.
At iQuasar Software, we offer AI augmentation services with a flexible talent pool that seamlessly integrates into your workforce, saving time and money. With our co-development approach, we collaborate with your team guaranteeing continuous delivery and data quality control, without the cost of hiring in-house experts. Get in contact with us for a free consultation to explore how AI can transform your business and begin your journey toward a smarter, more efficient future.
