AI Essentials for SMBs: Myths, Tools, and Tips
Artificial Intelligence (AI) has come a long way, if you haven’t noticed, and it’s become way more than just a sci-fi concept. It’s real, and it’s here to stay. Today, it’s becoming an essential part of many businesses of every scale, acting as a tool they can leverage for greatly improved horsepower across the board. According to Pymnts Intelligence, nearly 61% of SMBs say they’ve implemented it to automate daily tasks, while 53% report they use the technology to improve the quality and reliability of processes. Furthermore, 46% leverage it to improve the quality or reliability of the goods or services they sell. But with the rush of hype, there have been endless myths that blur the real potential of AI for SMBs. Today, we’ll break down what AI is, debunk some of the most common myths, and share practical insights on which AI tools might actually make a difference for your business.
Understanding AI and Its Benefits for SMBs
What is AI?
At its core, AI refers to systems or software that can perform tasks typically requiring human intelligence. This includes learning from data the model is fed, recognizing patterns, making predictions, and automating repetitive processes. For SMBs, this means they can automate things such as customer service, inventory management, or even make a push to enhance marketing efforts.
A common misconception is that AI will immediately transform a business, but, in reality, AI is the most effective when it’s woven gradually and strategically into everyday operations.
What’s the Current AI Landscape Look Like for SMBs?
As of now, AI technology is more accessible and affordable than ever. Many of these tools tend to cater specifically to smaller businesses, often in a user-friendly format that doesn’t require a PhD in AI technology, data science, etc. It’s better to get in now too as Deloitte recorded data that states 57% of businesses have already adopted AI in some form, and even among SMBs, the adoption rate is steadily on the rise as well. What’s this mean? SMBs are using AI-driven solutions to handle repetitive tasks, provide data insights, and improve their customer engagement.
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Three Common Myths Vs. The Facts Surrounding AI
This happens a lot: something takes the world by storm, everyone becomes an expert, and then there’s just a slew of false ideas and myths. AI is no different considering the current buzz around it. We’re not going to discuss the myths like “AI is going to make your computer come alive and take you out,” but more grounded myths such as unrealistic expectations.
Myth 1: AI is only for big enterprises
False. AI is more democratized now than it has ever been with more entry-level tools tailored for SMBs across industries such as retail, service, and marketing.
Myth 2: AI will replace jobs in my business
Once Again, False. AI is more likely to be used as a tool to assist employees than it is to replace them.
McKinsey reported in a study that,
McKinsey reported in a study that,
60% of all jobs have at least 30% of tasks that can be automated, freeing employees to work on higher-value work.
Your job still needs you – most AI tools tend to compliment the human touch we all provide.
Myth 3: AI delivers immediate results
Not True. AI adoption and then implementation is something that takes time. Think about it, you have to identify where you’re going to optimize AI. You then have to train your departments on AI and its uses. There are so many more steps until you can sit back and say “Okay, do this!” It’s also a good idea to keep in mind that results often improve over time as the tools learn from data and adapt to the needs of the business.
Types of AI-Driven Tools Made for SMBs
We all love a match made in heaven. All of those touchy RomComs thrive on palpable chemistry like that. Some tools are made just for SMBs – depending on the nature of their business. And that’s what we call a perfect match.
Here a few entry-level apps that are affordable and effective for SMBs:
Here a few entry-level apps that are affordable and effective for SMBs:
1. Customer Service Automation:
Chatbots and any form of automated response tools can handle common customer questions 24/7. This means you’ll have better customer service and experience while also reducing the human workload for customer service reps. The only issue with customer service is you have to be wary as to how far you take it.
Yes, data suggests that chatbots are the future with 95% of all customer interactions being managed by chatbots by 2025 (next year!?).
On the other hand, a study conducted by hiver found that over half of their respondents would prefer to still speak to a human.
Yes, data suggests that chatbots are the future with 95% of all customer interactions being managed by chatbots by 2025 (next year!?).
On the other hand, a study conducted by hiver found that over half of their respondents would prefer to still speak to a human.
2. Predictive Analytics for Marketing:
AI-driven data analytics can help SMBs in many ways.
One, it’ll help them to make more data-backed marketing decisions such as identifying ideal customer segments to even predicting product demand at different times throughout the year. Tools like Google Analytics and HubSpot’s AI-powered features help to make marketing more effective without the requirement of a data science degree.
One, it’ll help them to make more data-backed marketing decisions such as identifying ideal customer segments to even predicting product demand at different times throughout the year. Tools like Google Analytics and HubSpot’s AI-powered features help to make marketing more effective without the requirement of a data science degree.
Image Directly from HubSpot: HubSpot has unveiled their recent AI-driven tool “Breeze”
3. Inventory and Demand Forecasting:
For the product-based SMBs out there, AI can help forecast demand, optimize your stock levels, and prevent over or under-stocking. By analyzing any form of historical data and consumer trends local to you, AI solutions can suggest how much inventory you need to stock, when you need it by, and when to re-up. All of this to save you more money and improve efficiency.
4. Dynamic Ad Personalization:
Using AI, personalization is much more than just a merge tag of the customer’s name in an ad or an email. AI tools such as Dynamic Creative Optimization (DCO) on advertising platforms such as Google and Meta, allows for real-time adjustments in ad content based on user behavior and preferences. This means that if a user has shown interest in specific products or services, the AI can automatically adjust the ad to showcase relevant offerings. Dynamic ads ensure that customers are seeing content that’s tailored to their interests, which increases click-through rates and conversion rates.
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5. Ad Performance Monitoring and Recommendations:
On top of that, AI doesn’t just help with ad creation and targeting, it also monitors performance and suggests optimizations in real-time. Tools like AdEspresso and Revealbot offer AI-powered monitoring and recommendations, identifying which ads are underperforming and providing suggestions for improvement. For SMBs, this level of insight can be incredibly valuable, as it removes much of the guesswork from digital advertising and allows businesses to focus on the ads that deliver the best results.
An additional tool to help ease your advertising is 4XDigital, which makes advertising simpler by using AI to empower you to create, launch, and manage campaigns across multiple ad channels — all in one platform. Our AI generates ad creatives, optimizes campaigns, and consolidates performance metrics across channels. Additionally, we provide comprehensive, actionable insights to help you make informed business decisions.
An additional tool to help ease your advertising is 4XDigital, which makes advertising simpler by using AI to empower you to create, launch, and manage campaigns across multiple ad channels — all in one platform. Our AI generates ad creatives, optimizes campaigns, and consolidates performance metrics across channels. Additionally, we provide comprehensive, actionable insights to help you make informed business decisions.
Realistic Expectations with Entry-Level AI Apps
For SMBs looking to get in the mix with AI, setting realistic expectations is the majority of the battle. AI tools can enhance efficiency and improve your decision-making, but it’s also important to view AI as a compliment to your existing skill-set – not an all-in-one magic bullet that you can retire on while it prints money for you. Here’s what SMBs should look forward to or expect:
- The Learning Curve: Many AI tools out there are user-friendly, however, it can still take some time to adjust to them. You might get the hang of it within hours of usage. For other tools, it might take you a few weeks or months to fully understand the ins and outs of the tools capabilities.
- Improving: It isn’t a one-off approach. AI improves with data; the more data you feed it, the better it can refine its predictions and outputs.
- The Importance of Human Oversight: AI won’t replace your judgment as a human – it isn’t meant to do so. For example, an AI tool can analyze customer data but your insights and understanding of the business context remain essential. Another example is with blogging. AI can write a blog in the snap of your fingers, however, AI cannot mimic human emotion and cannot persuade someone to make a decision like a human can.
Takeaways
AI is opening a lot of new doors for SMBs in ways that were unimaginable just a few years ago. From automating mundane tasks to providing insightful data analytics, there’s an AI tool that fits almost every business need. The key is to start small, manage your own expectations, and choose AI solutions that align with your business goals.
