by Jacek Korneluk

I have been preparing to write this article a few months ago, started draft exactly in November 2023, but then other ideas came into my mind, and I paused and postponed it. In the traditional sense of time understanding seems almost recent, but in terms of how emerging technologies roll out, it may look like ages.

Nevertheless, a few months ago, the topic was “taboo” sort of, and not too many people were happy to talk about it.

“What are you talking about mate, AI, and small business? What AI and for what business, bloody nonsense mate.”

The Rising Tide of AI in Business

But very soon, in almost no time the idea getting constantly more and more attention and even traction. The concept of AI made as a tool for business owners gaining more recognition, interest, and signals of acceptance. Integrating elements of AI with a “business of one” individual entrepreneurship, small firms, and Small and Medium Entrepreneurship (SEM) becoming clearer and more understandable.

AI slowly acquired the status of a new general-purpose technology and doing exceptionally well then tailored for a specific use-case.

Why has AI triggered interest?

The reason is obvious, people reading and trying a variety of new digital solutions, AI included. The early adopters pioneered and experimented with it sometimes not even knowing what they precisely doing.

Quite common it is like the story I wrote about an Old Granny who proudly owned a couple of bitcoins and did not know of Web3 existence.

“Which Web3? I know nothing about it, and not sure I even like it! But Bitcoin is Bitcoin!”

Similar with AI, many people using and even like it without noticing that it is an AI-based solution.

Media soaking our brains with innovative news first, then access points coming.

“It is a bit like with priming and then prompting”.

“Whatever the reasons we are getting notice that AI is almost everywhere.”

“I like AI, I always liked it, and I think AI likes me.”

My journey with AI started in 2016, If you think it was early, you are wrong, mate. I was born in 1964 – the same year where the Eliza project was up and running. The fact is that 60 years ago, MIT researchers developed an early natural language processing software to stimulate conversation by using pattern matching. The most famous script used by Eliza was named DOCTOR, and the doctor-stimulated psychotherapist. Interesting, mate, is it?

Why SMBs Can’t Ignore AI Anymore

Back in 2024, the year I am writing this article, we are almost submerging deep into AI.

Whether when watching Netflix, texting, writing, browsing, or shopping, AI is involved. So, tell me why not use it in your business?

Usually, the answer has two variants.

“No, I do not like it and I will not do it, and Yes, not sure how but I will find how to do it.”

Probably many of you already started something, but still learning and struggling to make sense and money from it.

The truth is, no one wants to be first, but it’s better to be familiar with AI before your competition successfully utilises it.

As artificial intelligence rapidly progresses, small and medium sized businesses can not ignore its potential anymore. There is a need to change the culture of how we work and run our company more efficiently.

The Big Giants know it and have used it for ages, but recently AI was released for us – the masses, so we can reform ourselves, learn, and reestablish ourselves.

There is no point in competing with AI, but we can use it. This way we can be more productive, creative, and time-savvy.

AI proposals for small businesses are constantly changing, and the list of AI platforms is constantly growing. I am receiving about 20 new tools in 24 hours’ time frame. With so many newcomers, not properly curated, I do not have time to check even 10% of it. However, I am collecting most of the attractive links and applying a filter on what is relevant to me.

Each day I am using at least three or four different AI models depending on the task and intended reason. Sometimes I use it separately as one tool, and sometimes in collaboration, combining a few AI tools activities. Always, double-checking and correcting delivered outcomes. So, you can say I am always a Human-in-the-loop with AI” activities.

“Not all of them are gold, but not all are dodgy.”

Another issue is the privacy and sustainability. How safe my data is and how long the platform will exist and deliver.

In the case of third-party Apps/platforms built on top of ChatGpt only an educated guess, due to diligent research (DYOR), and practical personal experience seems to be the working, commonsense remedy.

Apart from that, there are the Big Boy’s Tools. They offer well-designed and established solutions. Focusing on maximum benefits and minimum of learning.

The selection includes but is not limited to OpenAI – ChatGPT, Google – Gemini, Anthrophic – Cloude, Inflection -Pi, Mistral, and a big family of LLAMas … and do not forget about Grok!

Not all of them are offered globally, and not every option is offered for free. Also, I do not see the need to use them all.

Nevertheless, I am using and promoting to use of not one but at least a few AI platforms, learning how to operate them, and then prompt to receive a desired outcome.

Choosing the Right AI Tools: From Chatbots to Data Analytics

Some AI tools are good for some jobs, others are better for different assignments, as usually the is not one solution that suits all.

It is important to identify the problem first, and then look for an adequate AI solution. Not opposite! The problem is to be recognised first, and AI tool next. This way we can estimate 5 – 10 times improvement.

Generally, AI can be used to improve our own business or improve other people’s businesses.

Sometimes consulting a genuine AI specialist may be essential. It would save time, headache, and money if learned top-down and guided by adequate Digital Mentor. Then you should know what you are doing, and what is your strategy to AI your problem.

Be aware that ChatGPT especially when combined with some smart plugins may deliver significant and deeply wanted improvements. Sometimes, a mix of AI tools is needed to make a real difference and increase business performance.

Also, what is important to mention, asking a proper question is key to success! We call it prompting, and the prompt is a question. Prompting is an Art that needs to be acquired, usually by learning. Prompts are specifically tailored to the AI tools and models. What is good for Claude may not work for LlaMa.

Additionally, priming is extremely important, some people call it the Seed Phase. For me Priming is Priming. It is the process of providing the information about the subject you are going to ask, and then elaborate.

It may be a service, product, or targeted audience. Remember to Always Prime before asking for an outcome. It works like with a cold car when you are starting the engine on a winter morning.

The difference is that usually, you need to prime it manually, like the older cars’ models of movers.

“Priming is a good habit, so remember priming!”

This applies particularly to all AI users not to Businesses only.

Another dimension that I find important is to choose between AIPs or web chat interfaces.

Both have some pros and cons for Business owners. Choosing between API or a web chat depends on the use cases.

Generally, for direct user interaction and support web chat interface may be more suitable.

For backend integration, automation, and customised implementations, an API is probably a better way to go.

Using API (Application Programming Interface) usually requires a steeper learning curve and some developers and provider dependencies.

Web chat interfaces like for example ChatGPT are much more user friendly, deliver instant communication, and multimedia support a plus big benefit – No development required.

In Real Life (IRL), applications may use a combination of booths. For example, a customer support platform might use an API to collect user data and a web chat interface for real-time communications with customers and users.

Artificial intelligence (AI) is changing how companies of all sizes operate. While large enterprises have the resources to develop custom AI solutions, small and medium businesses can also benefit from AI’s capabilities.

Implementing AI does not have to be costly or require advanced technical skills.

There are many affordable off-the-shelf AI tools you can use to automate tasks, gain insights from data, and enhance customer experiences.

Practical AI Applications for SMBs

One of the biggest ways AI can impact business is through customer service chatbots.

These bots can handle common customer inquiries, freeing up human agents to handle more complex issues. Chatbots are usually inexpensive, not so difficult to implement, and can be integrated with existing systems. They can also analyse customer conversations to identify trends and opportunities.

We can also use AI for market research and competitive analysis.

AI tools can monitor online content like social media, reviews, and discussion forums to gain real-time insights about customer sentiment, new trends, and what competitors are doing. This market intelligence can help us to adjust strategies and identify new opportunities.

Many companies have underutilised data from sources like their website, sales records, and inventory systems.

Feeding this data into AI algorithms can uncover hidden patterns and insights to improve decision-making. For instance, inventory data could be analysed by AI to better predict upcoming demand. Or AI could determine which product bundles and recommendations drive the most sales. Business owners don’t need advanced data science expertise to implement these capabilities. User-friendly AI tools make it accessible for any size business.

Computer vision is another emerging AI application relevant to small businesses.

It allows AI systems to identify, categorise, and understand visual content like images and video. Computer vision can enable use cases like identifying defects in manufactured products, monitoring store shelves for empty slots, checking for spoiled food items, or scanning ID cards for age verification. It brings automation to traditionally manual visual inspection tasks. Quicker, cheaper, and saving time on manual labour.

I research AI scenarios for small businesses using an AI-powered browser/search engines. Below is a list of potential use cases I received in seconds:

“Customer Support, Sales and Marketing Automation, Financial Analysis & Forecasting, Inventory Management, Human Resources and Recruitment, Personalised Customer Experiences, Operational Efficiency, Product Recommendations, Data Security and Fraud Detection, Market Research and Insights, Content Creation, Business Process Automation, Predictive Maintenance, Quality Control,  Real-time Analytics,  Employee Productivity and Wellness, E-learning and Training, Price Optimisation, Natural Language Processing for Document Analysis, Virtual Assistants for Task Management, Creating marketing material, Writing a perfect Tenders, Making a quick summary of big documents, and the list is expanding.”

Overcoming Challenges: Privacy, Security, and Sustainability

When evaluating AI tools and platforms, we should look for solutions that are easy to implement, have understandable results, and don’t require specialised skills to manage.

The AI should integrate well with existing business software. It’s also important to consider data privacy and security when dealing with customer data. Exploring open-source AI libraries can help us avoid vendor lock-in and have more customisation options.

AI adoption is a fact now. It will become table stakes for businesses of all sizes in the coming years. New models becoming more “Agentic”. I mean more assertive competitive, independent, and full of courage in achieving tasks. Soon, Large Action Models (LAM) will be commonly available for example on RabbitOS R1 gadget waiting to be already preordered. Such models are designed to perform actions on behalf of the user by understanding complex user intention and operation user interfaces, just awesome!

**So, the future looks very interesting in the times ahead. **

With the right strategy, even small teams and budgets can significantly benefit from AI automation and insights. Those who implement AI wisely will be well-positioned to survive, grow, and rip AI-associated financial and non-financial benefits.

That is my view formed on the day of writing,

Warm regards, Author

Originally published on February 19, 2024 at

https://spektrumlab.io/ai-for-small-and-medium-businesses-strategies-and-tools-for-innovation/