Smart Business: Practical AI Solutions for Modern Challenges

There’s so much noise about AI in 2024.? Barely a day passes without another AI story in the news.? New applications for AI are being discovered daily.? It truly is the golden age for artificial intelligence.

Modern business owners are now faced with a big dilemma.? Do they consider AI to be nothing more than hype, like NFTs or the Metaverse?? Do they understand the benefits but lack implementation skills?? Do they embrace AI into their company and if so how and where?

A brief history of AI

Is AI here to stay?? Well it’s been subtly entering into our lives for some time.? One could argue it started with Alan Turing in the 50s although lacked the computing power needed until the 80s and even then was very expensive.? However, as computing power dramatically increased we start to see big moments occurring, such as IBM’s Deep Blue beating a world chess grand master.

Even when our algorithms aren't keeping up, the sheer scale of big data coupled with the muscle of massive computing power enables artificial intelligence to muscle its way through learning, brute force style.

UK business AI adoption

Today AI has been embraced across a host of industries.? The UK government believe around 15% of businesses have adopted at least one AI technology. *1 ?

The worrying point here is that 85% of business have yet to use even their first bit of AI to help them.? Some may not be affected much & certain sectors are less suitable for augmenting with AI such as hospitality or construction. ?

However many companies are ripe and you’ll have probably been in them; picture large open-plan offices with admin or service teams shifting data from one legacy system to another.? Long-winded computer-based roles that have been around for two, three decades (often with the same software).? Our children will marvel at images of them just like we wonder at a 60s human-filled telephone exchange.

Why haven’t all businesses adopted AI?

Readiness?

AI enhances existing systems, a bit like a turbo makes an engine spin faster.? Problem is, many business don’t have the digital engine in the first place.? There’s no point boosting a business process that isn’t digitalised in the first place. ?

These businesses need to digitise their processes & workflows first, connect their systems and applications (typically industry specific required software) before they can take full advantage of AI.

This is the most important hurdle to overcome & is often beyond the event horizon of business owners.? I say that with no disrespect; this is a new era and we can’t all be expected to be experts.

Once a business is connected, legacy systems, industry-specific applications, from the initial customer instruction to the money coming in, then it will be ripe for some AI turbocharging.

Waiting for the future

There is a perception that the AI technology talked about in the media, will be available in the future.? “Our children will be able to…”? The reality is, most of us have been interacting with AI for a number of years, whether via social media, Amazon, credit card companies, etc and that there are tonnes of AI apps currently in use across the world.? It’s a case of finding out what’s out there that can actively help a business.

Understanding

Cutting through the noise can be tricky, and the term AI covers a wide range of disciplines from natural language models, to machine learning or computer vision so having a good understanding of your expected outcomes is important before going shopping.

AI, for business, is such a new subject for most, that it tends not to appear on the chairman’s radar.? Few in boardroom will have any professional knowledge of how it works, what it does or how to apply it, meaning the risk-averse companies will loose out to the entrepreneurial trailblazers.

AI and indeed many technological advancements don’t just make existing things go faster; sometimes they change the fundamental way of doing things. Think of a sail boat tacking into the wind; add a motor & there's no need to zigzag, it's quicker in a straight line that having a motor now allows.

Sluggish Culture

Corporations tend to be cautiously slow leviathans when it comes to incorporating new technologies.? Stricter rules mean that staff are unable to try new tech.? Experimenting with AI allows business to test what’s possible, which is how less stringent companies, start-ups for example, gain huge advantages. ? Think of Xero or Quickbooks taking on decades old Sage, using AI & technology in their Goliath beating slingshot.? By the time an idea has been discussed by the pyramid of managers, directors & the board, the boat has sailed & any advantage lost.

Cost Awareness

The perception of cost can be worrying.? CEO’s may assume that adopting AI could cost millions.? The reality is most useful business AI applications cost a few pounds (or more likely dollars) per month.? OK it will need a tech team to implement but once up & running the real cost savings come into stark contrast when compared to staff:? Let’s say a useful bit of AI costs $30 per month or an hour’s salary of an administrator.? Now teach it to perform that staff’s admin tasks & suddenly it becomes a very cost effective tool.

Tech never has a day off, doesn’t finish at 5pm and is consistent in it’s approach to every client, every task, every aspect of what it does.? Add instant data & management information, the environmental impact of not needing a member of staff to drive to work, and a reduction in work for support managers (HR, office managers, etc) and the advantages become clear. ?

Don’t want staff replaced by robots

This is a justified concern.? There’s no denying that AI is significantly more efficient than human staff when it comes to office work.? However, it allows a business to reduce its recruiting, letting natural staff churn reduce numbers.? A business can also concentrate on fee earning staff rather than legions of administrators.? It also allows the re-skilling of people into more tech orientated roles.

Afraid to fail

We learn more from our failures than our successes.? This isn’t just a cliché.? A racing driver pushes the boundaries of grip.? It is only when he pushes too far & spins out that he truly knows where the absolute limit of grip lies. ?

With any new tech there is an element of trial & error, seeing what works & having the discipline to restart from the beginning after a fall. ? This philosophy extends beyond technology, in my opinion, and should be inherent within a company’s culture.? Allow people room and a safe space to fail.? It’s not a negative thing, it actually helps.

At Laird we’ve implemented around a dozen AI apps over the last couple of years with probably a similar number which we’ve trialed & rejected.? The thought of 50% of say a production line failing would be catastrophic; with tech it’s barely noticeable other than the useful lessons it’s gifted us.

What advantages does AI offer a business?

The obvious answer is the massive cost savings over staff.? At Laird, we’ve reduced our staff by more than half over the last three years, but increased our productivity by about a third.? Works out around 330% more efficient. *2

Additionally AI works round the clock, no going home, no holidays, which is great for the supply-chain and consumers who are used to doing business at any time of the day or night.

Staff training is important for many reasons not least of which is providing a consistent approach to clients.? AI can be told once and it will not deviate.

To re-skill an employee to a decent level can be costly in terms of both money and time.? Upgrading tech is much easier and normally a low or no cost.

• Significantly cheaper than staff
• Much quicker
• Works 24/7
• Multitasking abilities
• Consistent outputs
• Easily adjusted / upgraded
• Less environmental impact

What are the first steps for a business?

Firstly a business needs to assess how much of its operation is digitised.? It’s not imperative for the full company to be digital & indeed many businesses start with the most inefficient areas.? From a practical point of view it’s often easier to digitalise or automate in stages.

From there it’s important to ensure that ‘if this, then that’ type automation controls as much of the administration as possible.? From there AI can be introduced and start to work its magic.

If you would like to have an initial chat about digitising a business, automating workflows or augmenting with artificial intelligence, please contact me here.

Nik Ellis founded Laird Assessors in 2000 and has used technology to give the company a competitive edge.? He is also the co-founder & director of Livepoint Software who make the automation & AI powered business platform, Swiftcase.

1 https://www.gov.uk/government/publications/ai-activity-in-uk-businesses

2 https://www.laird-assessors.com/streamlining-the-claims-process