How AI’s Disruptive Potential Could Reshape Business Models

#ShoryuWill Newsletter #16 By William Zhang

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What This Edition Will Cover:

• AI’s Disruptive Potential in Reshaping Business Models
• Ethical Considerations of AI in SMB Leadership
• Leadership Adaptability: Balancing AI with Human Intuition
• 3 Book Recommendations to Dive Deeper into AI and Leadership
• 1-2-3 Punch to Help You Level Up Your Leadership and AI Strategy

Imagine if every one of your team members had access to data insights that could elevate their decision-making abilities by tenfold. What would that mean for your business? AI is no longer a distant dream—it’s here, transforming the landscape of business strategy and operations. Whether you're running a small business or leading a strategic department, you need to grasp how AI can be a game-changer for you.

The Common Problem and Why It is Important:

For many SMB owners, AI feels inaccessible—reserved for large corporations with deep pockets and massive tech departments. The common perception is that AI implementation is costly and complex, making it out of reach for smaller operations. This mindset is not only outdated but can also hold your business back from immense opportunities. As Tony Robbins and Ben Lamm have highlighted, the barriers to AI adoption for SMBs are crumbling. AI is now an affordable tool that can help you reduce repetitive tasks, increase efficiency, and unlock new revenue streams.

Failing to leverage AI could mean being left behind in an increasingly competitive business environment. With AI, you can streamline operations, enhance customer experiences, and free up your team to focus on more strategic initiatives.

Proof of Concept:

Take the example of Grammarly—an AI-powered tool that initially started as a writing assistant but now plays a crucial role for businesses, large and small. By using natural language processing (NLP), Grammarly helps SMB owners handle tasks like drafting emails and correcting documents, saving time and reducing errors

. Another strong example is the shift in software development through Generative AI, where developers are seeing a 35% to 45% improvement in productivity, significantly cutting down costs and timelines.

For small businesses, these tools help you not only compete with larger players but also level the playing field by providing affordable solutions that automate mundane tasks, freeing up resources for growth and innovation.

Where We Went Wrong:

At Palantir Consulting, when we first explored AI, we made the common mistake of relying heavily on external consultants. We outsourced too much and found that our internal capabilities suffered. As Professor Shinkle from UNSW mentioned, one of the biggest risks with AI adoption is losing the ability to innovate from within. We learned that while consultants provide valuable guidance, building internal knowledge is critical for long-term success with AI.

Why the Problem Was Challenging to Resolve?

There are a few reasons why implementing AI felt like an uphill battle:

• Time: Learning AI tools and integrating them into our daily operations took more time than anticipated.
• Cost: Although AI tools are more affordable now, the initial investment in training and infrastructure can still feel overwhelming.
• Human Factor: Resistance from the team was significant. People feared job losses or felt AI might overcomplicate their roles.

Why It’s Easier to Resolve Now?

Today, integrating AI into an SMB is easier than ever before. The rise of SaaS platforms and open-source AI tools means you don’t need a tech department to start leveraging AI. There are countless affordable, easy-to-use AI solutions available that can streamline your processes. Tools like Salesforce Einstein and Zoho CRM allow you to automate customer management with minimal setup costs.

The New Thing That Makes It Solvable at Low Cost but High Returns:

The most exciting aspect of AI right now is generative AI. This type of AI can create content (like this newsletter), analyse data, and even predict outcomes based on historical data. OpenAI’s ChatGPT, for example, has already helped many businesses improve customer support by automating routine queries, allowing human staff to focus on more complex issues. For a small investment, you can integrate tools like these and see significant returns in productivity and customer satisfaction.

What Knowledge, Experience, and Network You’re Missing (and How to Fulfill It)

To successfully integrate AI into your SMB or entrepreneurial ventures, you need a strong foundation in knowledge, practical experience, and a relevant network to stay updated and competitive.

Knowledge:

AI can significantly enhance decision-making, automate mundane tasks, and optimize operations, but SMBs often lack the foundational understanding of AI tools. Here’s how you can build that knowledge:

• Chatbots: AI-driven chatbots, like Intercom, can reduce customer service costs by up to 30%, while also improving customer satisfaction by automating responses to routine queries. Similarly, Drift has shown that chatbots can lead to 67% more qualified leads from website interactions.
• CRM Automation: According to Salesforce, using AI-driven CRM systems can increase sales productivity by 34% and improve forecasting accuracy by 42%. Implementing AI in CRM allows businesses to personalize interactions and automate lead follow-ups, thus freeing up time for sales teams to focus on high-priority leads.
• Predictive Analytics: Predictive analytics, driven by AI, can increase operational efficiency by 25% and cut forecasting errors by 50%. Tools like Google Analytics 4 (GA4) and IBM Watson provide SMBs with the ability to forecast customer behaviors, optimize inventory management, and enhance marketing campaigns.

To build this knowledge, platforms like Udemy and LinkedIn Learning offer affordable courses. For example, Udemy’s "Artificial Intelligence for Business" course is priced at under $30 and provides a comprehensive introduction to AI and its business applications.

Experience:

Gaining hands-on experience with AI is essential to understand its value and impact on your business.

• Automate Mundane Tasks: Start small by automating customer service or repetitive tasks. AI chatbots, such as Chatbot.com or AlfredAI , can handle up to 80% of routine customer inquiries, freeing up your team to work on more complex issues.
• Use CRM Tools: By implementing AI-powered CRM tools like Zoho or Salesforce, SMBs can improve lead conversion rates by 300%. These systems provide AI-driven recommendations for best times to reach out to prospects, track client interactions, and automate administrative tasks.
• Start with AI-Powered Analytics: Predictive analytics can enhance decision-making by predicting customer churn rates with 95% accuracy. This allows businesses to take pre-emptive actions and reduce customer turnover, potentially saving up to 15-25% in revenue losses.

Pro Tip: Implement one AI solution at a time. Begin with automating a task such as email responses or lead generation, and track performance improvements.

Network:

AI is evolving fast, and staying updated is crucial for future-proofing your business. Your network is key to accessing the latest developments, best practices, and collaboration opportunities.

• Attend AI Events: Attending industry events like the AI Leadership Summit in Melbourne gives you access to top minds in the field. Events like this discuss the latest advancements in AI, governance, and ethical adoption. In Australia, the AI industry is projected to contribute over $22.17 billion AUD to the economy by 2030.
• Join Online Communities: Platforms such as AI Australia on LinkedIn and Reddit’s r/MachineLearning have thousands of active members. For instance, AI Australia has over 14,000 members, providing access to case studies, AI tools, and industry connections.
• Collaborate with Experts: Universities like INSEAD and other executive programs offer AI partnerships, where businesses can collaborate with AI researchers to explore cutting-edge applications. By building relationships with academia, you gain access to thought leadership and innovative tools to apply in your own business.

How to Fulfill It Step-by-Step:

1. Take an Introductory AI Course: Start with Udemy’s "AI for Business" or LinkedIn Learning’s AI Essentials course to familiarize yourself with the basics of AI tools. These courses are available for less than $50, providing excellent value for SMBs on a budget.
2. Implement One AI Tool: Choose a single AI tool like HubSpot CRM or Chatbot. Track how much time and cost you save within the first month. This step allows you to test the waters before committing to more advanced AI applications.
3. Attend AI Events: Register for the AI Leadership Summit in Melbourne or similar events. This will help you network with AI experts, understand the latest trends, and find tools that can directly impact your business strategy. Engaging in these summits also provides an average of 200% ROI through partnerships and industry insights
4. Join AI Communities: Participate in AI-focused LinkedIn Groups or Reddit forums. Active engagement in these communities will keep you updated on new tools and strategies that are working for other businesses.
5. Collaborate with AI Consultants: If possible, hire or collaborate with AI experts to help you build and implement a more comprehensive AI strategy tailored to your business’s specific needs. Companies that invest in AI expertise see 10-15% faster revenue growth compared to those that do not

By following these steps, you can ensure that your business is not only equipped to integrate AI but can do so in a way that maximizes return on investment, efficiency, and future growth potential.

Final Words:

AI isn’t a futuristic concept anymore—it’s a tool that can reshape how you run your business, from improving operational efficiency to creating more personalized customer experiences. The time to act is now, and the cost of waiting could mean losing out on massive competitive advantages. Start small, but think big. The AI revolution is here to stay, and the sooner you embrace it, the quicker you’ll see transformational growth in your business.

3 Book Recommendations:

1. Competing in the Age of AI by Marco Iansiti and Karim R. Lakhani This book offers a roadmap for understanding how AI can reshape business models.
2. The Fourth Industrial Revolution by Klaus Schwab Schwab’s book provides insight into how technology is transforming the global economy.
3. Superintelligence by Nick Bostrom A look at the long-term implications of AI on human society and leadership.

1-2-3 Punch:

1 Quote: "AI will either be the best or worst thing ever to happen to humanity." — Elon Musk

2 Questions:

What part of your business could benefit most from AI right now?

How are you preparing your team for the AI revolution?

3 Actions:

Identify one area where AI could automate repetitive tasks.

Explore AI tools like Grammarly, Gmass or Chatbot to see immediate returns.

Attend an AI-related conference or event in the next three months to stay updated.

Reminder to Subscribe:

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Your friend,

William Zhang