AI in Business | July 13, 2024

Welcome to the 33rd edition of our AI in Business newsletter, where we explore the latest developments in artificial intelligence (AI) and their impact on businesses.?

This week, we examine several key trends: the modification of tech companies' terms of service for AI training; YouTube's innovative AI tool for copyright management; and the rapid adoption of generative AI across industries. We also provide practical tips on leveraging AI for customer data analysis and introduce Notion AI as our featured productivity tool.?

Whether you're new to AI or already using it, we hope you'll find something useful here. Happy reading! And if there's anything about AI you want us to write about, just let us know.

Top AI in Business News Stories

NYT: When the Terms of Service Change to Make Way for A.I. Training

Tech companies are subtly modifying their terms of service to facilitate AI training using publicly available data. Google, for instance, updated its privacy policy to explicitly state that public information can be used to train its AI models and services. This trend extends across the industry, with companies like Snap and Meta also adjusting their policies to encompass AI-related data usage. These changes range from minor wording adjustments to the addition of entire sections explaining how generative AI models access and utilize user data

Implications for Average Businesses

It's crucial for businesses to remain vigilant about how AI companies are altering their terms of service. These changes could potentially impact how a company's data or its customers' data is used for AI training. To stay informed, businesses should regularly review the terms of service of their technology providers, particularly those offering AI-related services. Consider setting up Google Alerts for key terms like "[Company Name] terms of service update" for the AI services you use. Regularly schedule time, perhaps monthly, to review the terms of service of your critical technology providers. Consider using free or low-cost legal tech tools that can help track changes in terms of service. Additionally, review and update your own privacy policies to ensure they align with current practices and protect your business interests.

YouTube Upgrades AI Feature to Help Creators Remove Copyrighted Audio?

YouTube has enhanced its AI-powered tool that allows creators to remove copyrighted audio from their videos. The upgraded feature can now isolate and remove specific audio elements, such as background music or ambient sounds, while preserving the original speech or intended audio. This improvement addresses common issues faced by creators, including accidental inclusion of copyrighted music in vlogs or background noise in public spaces. The tool aims to help creators avoid copyright strikes and maintain their content's integrity without the need for complete re-edits or video removals.

Implications for Average Businesses

This AI feature upgrade presents significant opportunities for businesses engaging in video content creation. It allows companies to easily correct copyright issues in marketing videos, product demonstrations, or event coverage without costly re-shoots or specialized editing skills. Businesses can now confidently create content in various environments without fear of accidental copyright infringement. This tool not only saves time and resources but also helps maintain a professional online presence and avoid potential legal issues. For SMBs with limited budgets, this free feature effectively replaces the need for expensive audio editing software, making high-quality content creation more accessible.

McKinsey: Gen AI’s rapid uptake

A recent McKinsey survey reveals that most businesses can deploy generative AI within one to four months. Industries such as IT, software engineering, and HR are leading the charge, with 36% achieving quick implementation. The rapid adoption reflects the growing importance of AI in enhancing operational efficiency and driving innovation across various sectors.

Implications for Average Businesses

Rapid AI deployment, as seen in McKinsey’s findings, mirrors the efficiency gains and swift implementation we’ve facilitated for organizations like the Clemson Area Chamber of Commerce, who saw a $20,000 revenue increase in just three months, and Tucson Metro Chamber of Commerce, who spent 33% less time on content creation in the first week after our training. Both saw significant improvements in operations and revenue within a short period by participating in our training and implementation. SMBs can achieve similar results by strategically planning their AI adoption, focusing on both off-the-shelf and customized solutions to meet their unique needs.

AI in Business 101 -? Leveraging Customer Data to Drive Growth and Engagement

Leveraging AI for data analysis and reporting can significantly enhance your customer base or membership. AI processes vast amounts of data swiftly, uncovering patterns and insights that human analysis might overlook. For SMBs, this translates into the ability to:

• Understand your customers better
• Predict future behavior
• Personalize your marketing efforts
• Optimize your resources for maximum impact

Key Benefits of AI for Customer and Member Analysis:

Segmentation and Personalization:

AI analyzes customer data to segment your audience based on purchase history, engagement level, demographics, or behavior. This segmentation can be visualized in dashboards, allowing you to:

• Tailor marketing messages to each segment
• Identify high-value customers or members for special treatment
• Create personalized product recommendations or content

Churn Prediction and Prevention: AI models identify patterns indicating a customer or member is likely to churn. This enables you to:

• Proactively reach out to at-risk customers/members
• Develop retention strategies for different risk levels
• Analyze common factors leading to churn and address them

Lifetime Value Prediction: AI predicts the potential lifetime value of customers or members, helping you:

• Focus resources on acquiring and retaining high-value prospects
• Develop strategies to increase the value of existing customers/members
• Optimize marketing spend based on predicted returns

Cross-selling and Upselling Opportunities: AI suggests products or services a customer might be interested in by analyzing purchase history and behavior patterns, including:

• Optimal timing for upsell offers
• Bundled offerings that appeal to specific segments

Engagement Scoring: AI creates engagement scores based on various interactions, allowing you to:

• Identify your most engaged customers or members
• Target less engaged individuals with re-engagement campaigns
• Understand what drives high engagement and replicate it

Trend Analysis and Forecasting: AI analyzes historical data to identify trends and make predictions, helping you:

• Anticipate future demand for products or services
• Identify emerging customer needs or preferences
• Plan resources and strategies based on projected growth

Sentiment Analysis: AI gauges sentiment by analyzing communication data (emails, support tickets, social media), allowing you to:

• Identify potential brand advocates
• Address negative sentiment before it leads to churn
• Understand overall satisfaction levels and areas for improvement

Lookalike Audience Creation: AI analyzes your best customers or members to create profiles of ideal prospects, helping you:

• Target marketing efforts more effectively
• Identify new market segments with high potential
• Refine your ideal customer profile for business strategy

Customer Journey Mapping: AI analyzes touchpoints and interactions to map typical customer journeys, allowing you to:

• Identify key decision points in the customer lifecycle
• Optimize the onboarding process for new customers or members
• Develop targeted interventions at critical stages of the journey

Predictive Lead Scoring: For B2B businesses or member-based organizations, AI scores leads based on their likelihood to convert, helping you:

• Prioritize sales or outreach efforts
• Tailor nurturing campaigns based on lead quality
• Improve conversion rates by focusing on high-potential prospects

Getting Started with AI:

To implement these strategies, you need to:

• Ensure your customer/member data is clean, organized, and accessible
• Choose appropriate AI tools or platforms (or work with data scientists)
• Develop clear objectives for what you want to achieve
• Continuously test, refine, and validate the AI's insights
• Balance AI-driven insights with human judgment and ethical considerations

Example Use Cases:

Local Bookstore: AI Analysis: Customer purchase history and browsing patterns Insights: Identified a segment consistently buying cookbooks Actions:

• Created a "Cookbook Club" with special events and discounts
• Sent personalized recommendations for new cookbooks
• Partnered with local restaurants for cross-promotions Potential Impact: Increased cookbook sales and customer engagement

Fitness Studio: AI Analysis: Class attendance data and member survey responses Insights: Correlation between attending varied class types and longer membership retention Actions:

• Developed a "Class Explorer" program to encourage trying different classes
• Sent personalized class recommendations based on preferences and attendance history
• Created a loyalty program rewarding diverse class participation Potential Impact: Improved retention rates and increased class attendance

Local Hardware Store: AI Analysis: Seasonal sales data and customer purchase frequency Insights: Identified DIY enthusiasts making frequent small purchases Actions:

• Launched a "DIY Pro" membership with special discounts and early access to new products
• Created targeted email campaigns with seasonal project ideas and required materials
• Developed predictive inventory management to ensure popular items are always in stock Potential Impact: Increased customer loyalty, higher average purchase value, and optimized inventory management

Remember, AI is a powerful tool, but it's your unique understanding of your business and customers that will drive success.

Featured AI Tool of the Week - Notion AI

Notion AI is an integrated artificial intelligence tool designed to enhance productivity and streamline workflows within the Notion workspace. This powerful AI assistant is tailored to help small and medium-sized businesses optimize their operations, improve content creation, and boost overall efficiency.

For small and medium-sized businesses, Notion AI offers several valuable features and use cases:

• Content creation and editing: Notion AI can help generate drafts, brainstorm ideas, and assist with writing tasks. This can be particularly useful for creating marketing copy, blog posts, or internal documentation.
• Task management and planning: The AI can help break down complex projects into smaller tasks, suggest action items, and even assist in creating project timelines.
• Data analysis and summarization: Notion AI can quickly analyze and summarize large amounts of text, making it easier for teams to extract key insights from reports, meeting notes, or customer feedback.
• Meeting assistance: The AI can help generate meeting agendas, take notes during meetings, and create action item lists based on discussion points.
• Knowledge management: Notion AI can help organize and categorize information, making it easier for teams to find and access relevant data within their workspace.
• Customer support: The AI can assist in drafting responses to customer inquiries or creating FAQ documents, improving response times and consistency in customer communication.
• Ideation and problem-solving: Notion AI can help generate ideas for new products, features, or solutions to business challenges, stimulating creativity and innovation within the team.
• Language translation: For businesses working with international clients or multilingual teams, Notion AI can assist with quick translations of text within the workspace.
• Process optimization: The AI can analyze existing workflows and suggest improvements or automations to increase efficiency.
• Onboarding and training: Notion AI can help create comprehensive onboarding documents and training materials, ensuring consistent information delivery to new team members.

Benefits of Notion AI:

1. Increased productivity: Notion AI can significantly speed up content creation, note-taking, and task management processes.
2. Enhanced creativity: The AI can help generate ideas, outlines, and even creative stories, potentially overcoming writer's block.
3. Improved organization: AI-generated summaries and action items can help teams better organize information and prioritize tasks.
4. Language support: Notion AI can assist with translations, making it valuable for multilingual teams or international businesses.
5. Time-saving: By automating repetitive tasks like formatting, spell-checking, and summarizing, users can focus on higher-value work.

Drawbacks of Notion AI:

1. Potential for inaccuracies: As with all AI systems, Notion AI may sometimes produce incorrect or outdated information.
2. Learning curve: Users may need time to adapt to effectively using AI prompts and integrating the tool into their workflows.
3. Over-reliance risk: There's a potential for users to become overly dependent on AI-generated content, potentially impacting original thinking and creativity.
4. Limited context understanding: The AI may not always grasp the full context of a project or discussion, leading to potentially irrelevant suggestions.
5. Privacy concerns: While Notion has privacy measures in place, some users may be hesitant about AI processing their data.

Cost of Notion AI:

Notion offers a Free plan for basic use, paid plans (Plus, Business, and Enterprise) with additional features starting at $8 per user per month, and an optional AI add-on for $10 per member per month with a 20% discount for annual subscribers on higher-tier plans

Conclusion

Notion AI presents a powerful tool for businesses looking to enhance their productivity and streamline their workflows within the Notion ecosystem. Its wide range of functionalities, from content creation to process optimization, makes it a versatile asset for various business needs. Overall, Notion AI offers a promising solution for small and medium-sized businesses aiming to leverage AI technology in their daily operations, potentially leading to improved productivity and innovation in the workplace.

Stay Tuned and in Touch

That's all for this edition of the AI in Business Newsletter. We hope you found the insights and information useful for your business.

Don't forget about our upcoming AI for SMBs Conference on September 17, 2024 in Summerville, SC - the ONLY conference of its kind tailored to the unique needs of small and medium businesses. Checkout our website to learn more and to purchase tickets.

In the meantime, feel free to share this newsletter with any other business owners or managers in your network who could benefit. The more we can spread helpful information about AI, the better.

Thanks for reading, and we'll catch you next time!