AI is not just for giants: How small businesses can harness its power

As artificial intelligence (AI) reshapes business processes, a common misconception has prevented its more widespread implementation — that AI is a luxury reserved for tech giants and Fortune 500 companies.

This misconception has left many small- and medium-sized businesses (SMBs) hesitant to explore AI’s potential. Recent data illustrates the depth of this knowledge gap: 61% of SMB leaders said their company lacks a vision for AI implementation, according to Microsoft, while PYMNTS found 69% of SMBs with decreasing revenues have never considered AI adoption.

Their reasons for reluctance vary, but the reality is that AI isn’t just for the big players. SMBs armed with AI can level the playing field.

The ROI of AI

The true value of AI lies in its impact on business processes and bottom-line results — and recent studies paint an encouraging picture of AI’s prospective return on investment (ROI).

A study by Gartner reported that businesses recognize a 15.2% cost savings and a 15.8% surge in revenue after implementing AI solutions. Perhaps most tellingly, 91% of SMBs believe using AI will help their business grow, according to a report commissioned by the U.S. Chamber of Commerce.

Beyond these immediate gains, AI adoption offers you long-term advantages. It enhances competitiveness by enabling you to operate with the efficiency and insights traditionally reserved for larger enterprises. AI-driven personalization and automation can significantly improve customer experiences, thereby fostering loyalty and driving growth. And, as AI streamlines operations and reduces manual workloads, SMBs can redirect resources toward innovation and core business objectives to set the stage for sustained success.

The roadblocks to AI integration

While AI’s potential for SMBs is immense, several perceptions hinder its adoption. Limited resources and budget constraints top the list, with 22% of SMB leaders citing cost concerns as a reason why they haven’t integrated AI tools, per the Chamber of Commerce report. However, cost-effective AI solutions are available.

You can leverage the cloud to access large language models (LLMs) and only pay for what you use as opposed to paying per user for solutions like OpenAI’s ChatGPT. When adoption is low in the early stages, and you’re trying to learn what’s possible, this allows you to dip your toe into AI and get the whole power of the latest LLMs without spending a fortune.

Technical expertise is another hurdle. The Chamber found 31% of SMB leaders don’t know enough about AI and 13% lack properly trained employees. Plus, data privacy and security concerns also loom large. One-quarter (25%) of SMB leaders told the Chamber they’re worried about legal or compliance issues related to AI.

Despite these challenges, many SMBs are leaning into AI. Two in five SMBs (40%) told the Chamber they’re using generative AI — an improvement of 17 percentage points from 2023. According to PYMNTS, 51% of SMBs with increasing revenues say they’re using AI tools.

While obstacles exist, the right strategic approach, security measures, and resources can help your business harness AI’s power to drive innovation, efficiency, and growth.

Quick wins build momentum

How can your SMB start its AI journey without stumbling? Start small with achievable goals. For instance, in a recent conversation with a collision repair shop, we broke down a complex multi-step engagement into smaller parts and focused on just solving the first step. Instead of identifying specific car parts and repair costs from a photograph after an accident, we concentrated on a system that first detects whether that car has actually been in an accident.

Think of it as planting seeds rather than trying to grow a forest overnight. Prioritizing quick wins and “six-figure problems” instead of complex “million-dollar problems” allows for faster implementation and ROI, as well as valuable learning experiences.

Look at practical applications, like using AI to draft emails, transcribe meetings, track expenses, or implement customer support chatbots. These solutions address common pain points without overwhelming resources and will likely lead to stronger employee AI adoption as they streamline tedious tasks.

By focusing on these smaller, impactful projects, you can build confidence in AI capabilities and demonstrate tangible benefits to stakeholders while preparing for more ambitious AI initiatives in the future.

Capitalize on your expertise

One misconception is that successful AI implementation requires a team of machine learning (ML) engineers. It’s actually more about change management than a technology overhaul — leveraging existing domain expertise and enhancing AI literacy across your organization, not the presence of technical specialists.

The people who know your business inside and out are your secret weapon. They are best positioned to identify uses and implement AI effectively. They know what makes the business tick and what the biggest pain points are. With simple prompt engineering and retrieval-augmented generation (RAG) technology, you can customize models with your own data without exposing yourself to unnecessary risk or needing to turn to traditional ML expertise.

That said, there’s still a clear need for additional AI education. According to Microsoft, only 33% of SMB AI users have received proper training. How can someone who’s unfamiliar with a tool use it to its fullest potential? They need a safe space to learn how to interact with AI.

Consider upskilling your employees, rather than hiring specialized AI talent, and giving them access to AI tools. That way you can tap into their existing knowledge and build your AI capabilities — all while making AI more accessible and ensuring it’s tailored to your company’s specific challenges and opportunities.

If you’re still searching for answers, it helps to have a trusted partner to go on this journey with you. Let SHI be your guide.

Partnering for AI success

Our AI readiness assessment and generative AI blueprints for success provide comprehensive frameworks that orient your team to AI concepts, develop your roadmap, deploy solutions, and educate and empower your workforce. We can help you adopt secure, robust generative AI solutions that meet all your most pressing business needs. Best of all, we’re here to support you every step of the way.

Don’t let the opportunity to accelerate your business processes and boost productivity pass you by. Discover how your business can leverage AI to transform operations, increase efficiency, and thrive.

Ready to unlock the potential of AI? Connect with SHI experts to learn more and kickstart your AI journey today.