AI: The Game-Changer for Small Businesses in Australia

Artificial Intelligence (AI) is reshaping the business landscape in Australia, particularly for small businesses. With its ability to automate tedious tasks, provide insightful data analysis, and improve customer service, AI is a game-changer. Discover how your small business can leverage AI to reap these benefits and more.

Artificial Intelligence (AI) has evolved from a concept in science fiction to a crucial component of our everyday lives. The term ‘artificial intelligence’ was coined back in the mid 1950’s, when a number of academics and professionals in the field of technology first proposed a study of the term.ⁱ In that same year, the first AI program was developed.

Previously seen as a tool for large corporations, AI technologies have become more affordable and accessible, making them a popular choice for small businesses. You may already be using AI without realising it.

Not just for big business

Recent research by Deloitte and Stanford University reveals that approximately one in four small businesses are utilising AI in various forms, such as chatbots, predictive analytics, and marketing automation.ⁱⁱ

While that adoption may seem a little slower in the context of large enterprises’ use of AI which sits at around 40%, many small businesses have the edge on the bigger players when it comes to embracing innovative technologies.

The benefits

The appeal of AI lies in its capability to automate tasks that are time-consuming or mundane for humans. Some areas of the business where AI can play a powerful role include:

Administration: AI can help small businesses reduce the time spent on administration tasks, eliminate duplication, and minimise human error, ultimately freeing up resources for other activities. AI can be used for time and task management, bookkeeping activities, scheduling meetings, managing emails, and generating reports. Another area where AI is making an impact is in data analysis, which can be time-consuming, especially when dealing with large data sets. AI-powered analytics tools can make it easier for small businesses to extract insights from data and make more informed decisions.

Sales and client support: One of the most common applications of AI is the use of chatbots to answer frequently asked questions. These can include questions on available products, delivery dates, the status of orders and more, freeing up your resources to focus on more complex enquiries. AI also has the potential to assist with lead generation, marketing automation, client engagement and sales forecasting.

Supply chain enhancements: AI’s capacity for data crunching makes it ideal for identifying supply chain trends and making predictions to assist in the optimisation of a supply chain.

Strategies for Integrating AI into Your Small Business

These examples illustrate some of the prevalent ways Australian small businesses are leveraging AI. For your business to get the most out of AI, the first step is to identify your specific business needs and then choose the applications that can help you meet those needs. Take advantage of the wealth of online resources available to familiarise yourself with the potential AI offerings.

It’s important to also recognise the potential risks of using AI. Some review of the information generated by AI is needed as mistakes can occur. Also consider security risks and take the appropriate steps to keep your customers’ details and information about your business secure.

When it comes to implementing AI within your business consider the business case for its deployment (it’s easy to get carried away when it comes to new technology) and how it will be managed, what resources will be required including internal processes that need to be refined before you get going.

The true value of AI lies in its ability to liberate your team from tedious tasks, allowing them to focus on what they excel at. Consider how AI can optimise your team’s productivity by reducing administrative burdens and freeing up resources for critical operations.

i http://www-formal.stanford.edu/jmc/history/dartmouth/dartmouth.html
ii https://aiindex.stanford.edu/report/

This article is intended as an information source only and to provide general information only. The comments, examples, words and extracts from legislation and other sources in this publication do not constitute legal advice, financial or tax advice and should not be relied upon as such. All readers should seek advice from a professional adviser regarding the application of any of the comments in this article to their particular situation.