Capitalising on the AI story: What the SME needs to know
Artificial intelligence (AI) has moved at a pace of innovation and change that has astonished even its creators[1]. From early experimentation to essential business infrastructure, AI has become as much a part of the business environment as email and calendars. It has slipped into the cracks, sped up processes, automated workflows and simplified working life, but the pace of its evolution and adoption has put the small to medium enterprise (SME) under pressure. Companies want to know how to integrate AI into their daily operations, says Neda Smith, founder and CEO of Agile Advisory Services, and how they can benefit from its capabilities, but the scale of choice and variability of technology make this choice overwhelming.
“Where does the SME start?” she says. “Is it with a simple solution that’s easily integrated, or do they need to think big and invest in tools that can transform how they work? What tools will be the right fit, and how do they know if these tools have longevity and value?”
Choice paralysis is very real, and something that SME’s are grappling with. The rapidly expanding range of AI tools, platforms and vendors that are both industry-specific and general-purpose, combined with a lack of clear guidance, leaves many companies unsure of what to adopt or where to begin[2]. Fortunately, this sense of overwhelm is not the full stop at the end of the AI sentence – it’s the perfect starting point.
“Finding the right AI solution comes down to understanding the pain points within your business,” says Smith. “If you have clarity into the areas of business that need optimisation, visibility, speed, agility, data, insights or automation, then you’re halfway to making the right choices.”
There is little doubt that making a choice is essential. Gartner believes that by 2027, most companies will be using small, task-specific AI models at least three times more often than larger, general-purpose models, while IDC predicts that 50% of SMEs will be prioritising AI-specific budgets over the same time frame[3][4]. Companies not embracing AI are, in a very real sense, facing the risk of being left behind their competitors who are benefitting from the value it brings. And there is measurable value with proven gains felt by SMEs embracing these AI tools – research from the University of St Andrews Business School found that these are as high as 133%[5].
“The most successful implementations are often the simplest,” says Smith. “SMEs are seeing value without custom software or complex infrastructure. They are leveraging the technology to improve productivity, automate administrative tasks, reduce waste and streamline resource planning.”
Stepping into this potential means building a clear roadmap. If you don’t have clarity into how your business can embed improvements through AI, it’s just going to be an expensive mistake. The problem is that many SMEs don’t understand AI enough to apply it and are unsure how to evaluate the risks of AI tools that rely on third-party data or cloud storage. There are also legal concerns, weak digital maturity, resistance to change and limited technical leadership.
“The key is to approach AI as a long-term business capability and not a one-time technology upgrade,” says Smith. “A phased strategy will lower risk and build confidence. Once you know your pain points, then you need to deepen your understanding around what AI can or cannot do and how it aligns with your goals. Then, pilot tools which solve these problems and meet these goals, gradually progressing to more advanced tools for specific functions.”
From automating simple workflows to customer segmentation, fraud detection, stock forecasting and document processing, you can explore tailored use cases that are specific to your industry and needs once you are more confident in use cases and understanding.
“You don’t need to be a developer or AI genius to benefit from AI right now,” concludes Smith. “It looks daunting, but it’s as simple as a methodical approach to exploring use cases, leveraging trusted partners to help you expand your knowledge and applications, and then moving, with intent, into embedded functionality across your ERP and CRM platforms.”