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How Artificial Intelligence Impacts Small Businesses

Written by     on    04 Jan, 2020     0      

New technologies have been introduced to the business world at a rate faster than we are aware of. From online shopping to product tagging and customer chatbot support, artificial intelligence (AI) has actually penetrated the management and operations of businesses in more ways than one.

As corporations and widely known successful entrepreneurs continue to invest in AI, more strategies will be discovered on how to utilize such technology in different business processes. Continuous improvements in technology will also make it easier for small businesses to adapt, making their system more accessible and user-friendly.

Still not convinced on the revolutionary contributions of artificial intelligence to businesses? Perhaps defining artificial intelligence and enumerating its different adaptations in various business processes will help. Read on to learn more.

What Is Artificial Intelligence?

AI is a branch of computer science that deals with smart machines that have sets of commands programmed to mimic human intelligence. It is designed to process information that requires a higher level of critical analysis which would otherwise seem like a skill that is learned only by humans.

Countless studies have produced a lot of fruitful results; we are now living in a world with efficient artificial intelligence Even now, professionals are still adamant on improving the quality of artificial intelligence that we have at present.

It is important to invest in this because any progress in the field shall bring about a revolutionary change in our lifestyle. Working experience is bound to change drastically wherein data management becomes easier as artificial intelligence saves us the hassle of such a factor. In fact, there are countless methods on how artificial intelligence has changed different processes in business management.

How Is AI Implemented in Business Management?

As discussed earlier, artificial intelligence is a wondrous and efficient system that has a built-in task assistive feature. The business world has already caught on to how important it is to stay updated on the latest breakthroughs in science and technology to integrate innovations in their business.

Indeed, it is a given that business management is not an easy task. But it is also a thing that could either make or break one’s business. Being able to invest in an actual appropriate method of managing one’s business can tremendously affect its status among the competition. As critical of a decision it is, different entrepreneurs, then, are dedicated to discovering variables that are to be introduced to deviate from the traditional business management. Likewise, they are committed to being able to integrate the task assistive features of such systems brought about by science and technology.

Currently, AI has proved itself to be of great help, having a system that has been programmed to carry out a higher level of analysis that is designed from the human level of thinking. As such, different businesses have started to introduce this system into the different processes of their business management. From the data management needed for their product conceptualization and actualization, to service operational inventory, marketing, and customer assistance, AI has truly proven itself to be vital in the business world.

Here are major processes in business management where artificial intelligence is widely implemented:

● Data Management

Managing official documents, receipts, and other countless data is a challenging task. It is a tedious task that requires total concentration from human resources, greatly depending on numerous soft and hard skills. It is a critical process that involves handling raw data and summarizing these data for interpretation.

This can affect the management of businesses. Data mismanagement can lead to wrong investments and may, later on, lead to operational failures.

Humans as we are, it is normal for us to create mistakes, especially in dealing with sensitive critical tasks like data management. It requires constant rechecking and cannot be done in a short amount of time. However, with the modernization that has gifted us with revolutionary breakthroughs, artificial intelligence as a programmed system can help in the data management process.

The new data management process with integrated AI is a huge help to businesses. The hassle of having long hours taking raw data from product conceptualization and actualization, to the list of resources needed in the business, as well as the operational data, among others, can all be tracked and organized by AI. Gone are the days of traditionally taking the documents and arranging them one by one in different categories. The AI’s system can automatically do the organizing for us and it only asks of us to simply encode the raw data to be organized and analyzed. Such great help can actually decrease the probability of human error in data management, which would lead to more accurate findings that shall bring more efficient solutions.

● Product or Service Marketing

Modernization has changed lifestyle trends. From the traditional setting, one of the most notable changes that had been introduced by the developments of science and technology. Our century is now dependent on mobiles and the Internet. As such, scientific technological creations have successfully brought people closer with the real-time exchange of information done in a split second no matter the distance. Therefore, the trend is focused on the online world.

Entrepreneurs, as vigilant for opportunities they are, have observed the trend in the online setting and have decided on introducing the concept of online shopping and online business. Aside from having a physical store where one can avail products and services through actual buy and sell, business transactions can now be made through the online world. Different products can now be posted online for potential customers, and after making a quick purchase, products shall be delivered as soon as possible. The buyer and seller may even agree to meet up for a transaction if their locations are relatively close enough.

Having an online business is appropriate for small brands since new entrepreneurs can get the chance to buy and sell without investing a whole lot of money for a physical store. Also, small businesses would no longer deal with the hassle of choosing an appropriate location;  they would not have to worry about rent and the link either. The internet itself — the whole cyber world — becomes their business location. This allows them to reach more people, and for prospects to find them more easily as well.

Most customers prefer online shopping because of the edge it gives to them. Customers are no longer limited to buying whatever quality is offered in the closest physical stores. They are able to continuously search for the different products and services that they want and find it at the most affordable price. But how are interested consumers able to track down exactly what they want in the vast world of the internet with countless products in the competitive business world of online shopping?

Product tagging helps business owners and buyers alike in online shopping. Putting on keywords on your products as “tags” can help your product show up in people’s search results upon typing in the actual or similar word. Having an efficient “tag” is made possible by choosing as many words as you can that are related to your product, which may enable you to grab as many potential consumers as possible. Indeed, the wonders of product tagging are only possible due to the system of artificial intelligence.

Furthermore, AI is a smart system that figures out the algorithm and discovers the patterns of an internet user’s frequently searched tags. In the process of discovering what the user needs, push notifications and push advertisements are integrated into their system. If a person frequently searches for a “leather bag,” when they visit another site, they may be able to see different site ads for leather bags. It is not an uncommon happenstance or a coincidence; this is actually a result of how smart machines are designed to study the pattern of your interests and online behavior as they automatically offer you what you need without you having to search for it anymore.

 ● Customer Support

Traditional businesses in the physical world have a tight competition and more so with online businesses on the global market. Having the most competitors from different parts of the cities, regions, or even countries, an online seller must have so much to look out for. The lag time in availing the product for consumers is the golden time for convincing them to buy the offered services and products. Therefore, the faster a seller replies to an interested buyer’s inquiries, the greater the probability that they may actually sell their product. Likewise, slow replies are discouraging for other buyers and may actually lead to them opting for another seller.

However, not at all times can an online seller hold their phones and reply to anyone interested 24 hours a day, 7 days a week. Therefore, chatbots are created in order to help sellers deal with their buyers’ inquiries even when they’re offline. Chatbots, which are a product of artificial intelligence, provide programmed answers to different questions and automatically respond to interested buyers. It is a great help for customer support. As starting entrepreneurs, owners of small businesses who choose various online platforms tend to have no large capital.

Therefore, all capital should be used for the product availment itself since human resources will not be needed as much. AI provides a digital resource that can aid you in your business management.

Effects of Artificial Intelligence on Small Businesses

Having been enlightened on how artificial intelligence is integrated in business management, let us now discuss the effect of such an implementation. How does AI affect the management of a business?

 ● Artificial intelligence increases efficiency.

Artificial intelligence is a great help for small businesses lacking in manpower because the integrated programmed system itself helps in decreasing a starting entrepreneur’s workload. AI can do different tasks accurately in a short amount of time; thus, efficiency is increased.

● Artificial intelligence bridges the gap in accountancy literacy.

Not everyone in the business setting has the opportunity to have a formal background or education on business management and accounting. However, it is a reality that knowledge in such areas is needed in successfully putting up and maintaining your business. It is an edge in the business competition to have accountancy literacy. But, worry not, since artificial intelligence got your back. AI will become the bridge to the gap in such areas.

● Artificial intelligence provides an organized business framework.

As artificial intelligence makes way for built-in task assistive features, business management is reassured to have an organized business framework. Ultimately, the smart system is helping small businesses in terms of data management and organizing.

● Artificial intelligence lessens the hassle for start-up business owners.

Starting entrepreneurs who are often alone in the implementation of their business are carrying all the burden in the management themselves. AI shall carry the burden with you as the smart system shall integrate its task assistive features to the fullest, reducing the hassle in one’s business management.

● Artificial intelligence lets you cut costs on resources.

As previously mentioned, online businesses are now becoming a trend. It is the most advisable option for starting entrepreneurs since the capital shall only be spent on the products to be marketed. There will no longer be a need to invest in the building of a physical store and fewer costs in investing in human resources.

● Artificial intelligence decreases the consequences of human error.

Business management is a tedious task, and as critical it is, it demands much concentration. However, humans can only execute so many tasks at once, and managers always have to take into consideration the margin of human error. However, since artificial intelligence is ready to help you in your business management, the accurate and efficient data management brought about by technological advancement brings the edge of lesser risks and decreased unwanted consequences through the lesser probability of human error.

In conclusion, small businesses can benefit from using AI for various reasons. AI allows start-up owners and local entrepreneurs to increase their efficiency, bridge the gap in accountancy literacy, and lessen the hassle and financial investments. It also provides them with an organized business framework and decreased chances of human error. These factors can lead to better outcomes, allowing your small business to grow, develop, and succeed.

Tags :  AIai for small business marketingArtificial IntelligenceHow Artificial Intelligence Can Help Small Businessessmall businesses using ai

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