AI, Solution for everything?

The benefits of AI are undeniable. From Generative AI to process automation or data analysis, there is a use case for almost all industries.

Literacy around technologies often paints them as the universal solution to all business problems. Many entrepreneurs, particularly small business owners, invest in digital products hoping for transformative results which more than often never come.

I have been approached by a friend of mine, the owner of a construction company. He was pitched about AI Bot and wanted to integrate it into the company’s website. He believes that AI will help boost sales, and the website’s visitors will have a tailored experience customized to their exact needs, automatic bookings, and all kinds of features.

The problem he wants to solve. -

Every entrepreneur today faces the challenge of attracting customers in a digital landscape filled with competition. The business environment has been reshaped, creating access to a broader audience, and in the meantime raising competition from around the world.

We have also to take into consideration a shift in consumer behaviors. Customers are more informed and connected than ever. They heavily rely on online research – 8.5 billion daily searches on Google – and reviews to make purchase decisions. Small businesses must adapt to meet these customer expectations for a seamless online and offline experience.

What was sold to him? -

In today’s digital age, having an online presence has transformed from an option to an absolute necessity. A well-constructed online presence allows small businesses to reach new customers, showcase their products and services, and provide essential information. Furthermore, websites serve as a platform for online sales, creating an additional revenue stream. However, the challenge lies in developing an online presence that can effectively compete in a crowded digital space. Business owners have been inundated with offers of user-friendly visually appealing websites, digital marketing, and now AI solutions as the ultimate problem solver for every issue.

Artificial Intelligence is on steroids, what the Internet was in the early 2000s. Its rapid adoption is phenomenal – ChatGPT has 180.5 million users and 1.43B visits in August 2023 – AI is the fixer.

The reality. -

The benefits of AI are undeniable. From Generative AI to process automation or data analysis, there is a use case for almost all industries.

Thus being said, the reality is like any other technology out there, it's essential to recognize AI as a tool crafted for a specific task, not a one-size-fits-all business solution. Successful integration of technologies like AI should align with a larger business strategy, addressing specific objectives and challenges. Business owners must have a clear vision of what they are trying to accomplish, understand the challenges, identify the roadblocks, and determine solutions and to-dos to reach their goals and overcome blocking elements.

As my friend's business objective was getting more customers, we dug into the data to see what they said:

• The company’s website traffic is absolutely low. Almost no visits for the current year.
• The company’s Google Business Profile is not claimed.
• The company has no social media presence.
• 80% of customers are from leads the company bought.

The data revealed a lack of online presence, low website traffic, an unclaimed Google Business Profile, no social media presence, and reliance on purchased leads. The focus should be on building an online presence as a new channel to bring more customers. The insights show it would make more sense to invest in a digital marketing tool, driven or not by AI, that could boost the company’s online presence and make it rank better on search engines.

In this context, the investment in an AI-powered chatbot wouldn't yield results. Without a robust online presence to drive traffic, the chatbot wouldn't be utilized effectively.

The conclusion. -

The digital age is evolving rapidly, and small businesses must harness technology to capitalize on opportunities and address challenges. When considering AI or any information system, it's crucial to evaluate not only its technical aspects but also its alignment with the business's strategic needs. Always assess the current situation and obtain second thoughts from digital transformation experts for a well-informed decision.