The world of AI and its impact on SME

In business, artificial intelligence has a wide range of uses. In fact, most of us interact with AI in some form or another on a daily basis as AI develops and becomes more commonplace in our daily lives.

Most businesses are swimming in data right now – but less than 1% of most organizations’ data is being used at all – much less being analyzed for meaningful decision-making.

AI technology promises to revolutionize the way businesses operate, but what is it?

This article is for business owners and employees who are looking to understand how the use of artificial intelligence transforms the business sector. It aims to explain what AI is, its business applications, and its potential impact on SME activities.?

What is AI?

AI, or Artificial Intelligence, is the ability of a machine to perform cognitive functions we associate with human minds, such as perceiving, reasoning, learning, problem-solving, and even creativity. It consists of a variety of technology subfields that are often interrelated. Examples include natural language processing, speech recognition, image processing, and robotics.

With the help of AI, machines can formulate predictions, make recommendations, or draw decisions that can influence the business environment according to desired objectives.

Enablers of AI

These enablers have created a foundation for the growth and expansion of AI applications

• Increased computing power and storage capacity with greater data availability. With Cloud Computing, AI systems are able to process and analyze data at unprecedented speeds and volumes
• Advancement in complementary technologies: robotics, Internet of Things (IoT), autonomous vehicles, computer vision, language, virtual agents, and machine learning. These technologies have allowed businesses to collect and process large amounts of data, as well as to automate processes and tasks that were previously performed manually

Business applications of AI relate to automation, data analytics, predictive capacity, image/face recognition, and natural language processing.

What is ML?

Now that we know what AI is, let us understand what ML is. Machine learning is a subset of AI that allows a machine to automatically learn from past data without programming explicitly.

Machine Learning can be categorized into three subsets of learning methods:

1. Supervised learning: This is a machine learning approach where the model is trained on labeled data. Labeled data refers to a set of input data that is already paired with the correct output, allowing the model to learn to make accurate predictions when given new, unseen input data.
2. Unsupervised learning: on the other hand, unsupervised learning is a machine learning technique where the model is trained on unlabeled data. The model is not given any predefined output data to learn from, but rather is left to identify patterns, structure, and relationships in the input data on its own.
3. Reinforcement learning: This is a machine learning approach where the model is trained to make decisions based on a reward system. The model is trained through a series of interactions with an environment and receives rewards or penalties based on the actions it takes.?

Why Transform Your Business with Artificial Intelligence

The benefits of implementing AI in your business are immense. AI enables technological shifts in SME practices and business environments allowing businesses to increase productivity and outreach, and scale-up

• AI can drive greater efficiency in the SME sector through innovation
• AI can improve SME business conditions and help level the playing field

Companies can use AI to boost their business results in three primary ways:

• delivering smarter services
• creating intelligent products
• improving business processes.

AI System illustration

AI system is comprised of three key elements: sensors, operational logic and actuators. Raw data from the environment is collected by sensors. Data is then processed according to a given set of objectives that are encoded into an operational logic. An AI model constitutes an important part of the operational logic as it reflects the environment and describes its structure and/or its internal dynamics.

An AI model can be built based on knowledge and data generated by humans, automated tools, or a combination of both. Model inference shapes the model outcomes in the form of predictions, recommendations, or decisions.

Benefits for Businesses

Some of the key benefits of AI are

AI enables the automation of a broader range of tasks

• By identifying patterns in datasets and learning from tacit non-structured knowledge, new AI systems make it possible to automate non-routine tasks that previously required human intervention.
• AI-enabled automation could free workers from repetitive low value-added tasks, provided their jobs could be re-organized and their skillset upgraded

AI increases efficiency in predictive analytics for decision making

• AI facilitates data-driven decision-making in the business context
• Predictive maintenance can increase efficiency in asset maintenance and management
• Enhanced prediction capability allows for a greater market segmentation and price differentiation and gives SMEs a possibility to innovate and adapt business processes

AI Applications in Business

Here are some application areas of AI in businesses

• Hiring and Recruitment- It is a tedious task for the Human Resources team of a company to go through every single resume in order to shortlist the perfect candidate.
• Cybersecurity- Every business requires security online since all important company including financial data, strategies, private information etc are stored online. Cybersecurity is a necessity for all companies and hence, is one of the most important applications of AI.
• Market prediction- Stock markets are one of the most popular and unpredictable markets due to its dynamic nature. Many people invest in Stock markets as they have also proved to be very profitable.?
• Billing and Invoice- Companies often have bills, payment checks, and invoices exchanged with others. These accounting and financial processes could turn out to be very burdensome if handled manually.
• Virtual Assistants and Conversational Interfaces- Businesses are inculcating virtual assistants and chatbots in their websites and applications, that can answer any queries that the user might have about the company and provide 24/7 customer service.?
• Predicting Vulnerability Exploitation- Companies can predict any sort of malpractices that might risk the system being exploited. AI can also help in identifying credit fraud and insurance claim fraud in real-time. This saves the company from scams and big losses.?
• Customer Analysis- It is extremely important for companies to analyze their customer base and strategize for more engagement and improvement in any other field.?
• Social Media Insights- Through AI, brands can know their position in the market and get insights into their customer base. This will help the brand to strategize and improve and build its social media game!?
• Targeted Marketing- Targeted marketing or Targeted Advertising is a method of online advertising done with the help of NLP and AI that shows ads to only specific audiences.

In conclusion, AI is a game-changer for businesses of all sizes, enabling them to transform their operations, enhance decision-making, and drive growth. However, the benefits of AI can only be realized if businesses invest in the necessary infrastructure, expertise, and culture to harness its potential. As the technology evolves and becomes more accessible, businesses that adopt AI early will have a significant competitive advantage over those that lag behind.