The future is here. But instead of anthropomorphic robots cleaning our kitchens and driving our kids to school, artificial intelligence looks like computations, algorithms, and data. Within the realm of small business, while scaling drives innovation and economic growth, AI can also act as a key catalyst for acceleration.
In a recent U.S. Chamber of Commerce analysis, an overwhelming number of small businesses — 98%, to be exact — say they’re using an AI-powered tool1. Four in 10 businesses (40%) report folding in generative AI tools, like image creation, copy, and chatbots.
The fastest-growing small businesses are riding a recent growth spurt, with accompanying spikes in revenue, market share, and/or customer base, thanks to these evolving tools. Here, we’ll walk you through AI’s potential role in accelerating growth for your small business, regardless of sector, industry, niche, or size.
Factors That Contribute to Fast Growth
By folding AI tools into your business, you can automate tasks to save time, money, and resources. That way, you can carve out more time to explore novel business ideas and products.
Case in point: I am acquainted with a financial planning firm working to use AI to automate processes such as invoices and general client queries. This hack will save them both time and money, allowing the firm to cut costs and, in turn, charge lower fees, expanding their customer base to include those who couldn’t previously afford their services.
You can also use generative AI tools to create copy and imagery, springboarding the initial stages of product development. For instance, a good friend owns a business that creates and launches outdoor and board games. Before hiring professionals to create the art for his products, he’ll use generative AI to explore and manipulate different imagery, saving money in consultation fees.
As a small business owner, you can harness AI’s capabilities to craft clever copy for personalized marketing strategies. Then, you can tap into your strong leadership and management to make the most of AI-supported data and tools, easing your adaptation to market changes.
AI-Driven Tips for Small Business Owners to Accelerate Growth
AI can tap into machine-learning algorithms to spot and analyze patterns and trends in large sets of data, nudging your business in the direction the industry is headed.
For example, as an emerging online sticker shop owner, I use AI to identify which types of stickers trend at different times of year and perform well with particular demographics. I can also cull through data to decide whether to focus on online transactions, brick-and-mortar sales, or both. From there, I can leverage AI tools to set goals and objectives for my new endeavors.
If you’re a small business with employees, AI tools can analyze various sources of data that matter to you — think team feedback and year-end reviews—to foster a more supportive, enriching company culture. Leveraging these insights can spotlight opportunities for improvement in your human resources spaces.
Beyond boosting employee morale and enhancing company culture, chatbots and virtual assistants can foster team collaboration. Plus, they can make it easier to network with other small businesses, cultivate connections with potential partners, and form strategic partnerships.
Challenges and AI Solutions for Fast-Growing Small Businesses
If your small business is primed for expansion, artificial intelligence can move you towards that goal in multiple ways. AI can help manage your cash flow, track invoices, and manage bookkeeping and general accounting; in addition, its analysis of your financial data can help predict cash flow and support planning. For instance, the gaming company above has a seasonal business, with most sales occurring during the holidays. Its owner can use AI to plan for expenses related to online marketing, shipping, and inventory during peak periods.
Further, AI can serve as your in-house marketing professional, deftly and quickly combing through data from different sources (i.e., customer reviews, industry reports, and social media trends) to analyze competition and market saturation. These types of in-depth competitive analyses can unearth surprising opportunities in crowded markets.
Critically, tapping into the power of this data can also support quality control. AI can automate and streamline processes and perform QA checks at critical points, ensuring smooth and efficient operations, top-quality products, and superior services.
Last, artificial intelligence promotes efficient resource allocation, filtering massive amounts of information to make recommendations that protect your investment from waste or unnecessary costs. If you’re a product-based business or run a restaurant, you can do an inventory check to minimize waste. You can also gauge which ingredients and materials are the least expensive to ship and purchase at different times of the year, making for a more sustainable, cost-effective business.
Reshaping the Landscape of Small Business Growth
In countless ways — some we can only imagine — AI is reshaping how small businesses pivot, evolve, and expand. Consider exploring and adopting AI tools and solutions to scale and foster innovation within different aspects of your small business.
Remember: it’s not about man versus machine. AI doesn’t necessarily have to replace manpower — or ingenuity. By creating a synergy between human creativity and AI tools, you can drive success in your business and uncover hidden opportunities for growth.
References:
- https://www.uschamber.com/technology/artificial-intelligence/new-study-reveals-nearly-all-u-s-small-businesses-leverage-ai-enabled-tools-warns-proposed-regulations-could-hinder-growth ↩︎