Small businesses are increasingly looking at ways they can leverage this technology to save valuable time and effort. A recent NSW Small Business Commission survey found that one in four businesses are currently using AI tools, with almost half of these users reporting a positive impact on their business. Yet there are some things to be mindful of when looking at ways to implement AI in a commercial setting. 

This guide provides an overview of how AI can help your small business as well as some of the risks and challenges you may encounter. You will also discover how three small business owners have integrated AI tools into their operations.

What is AI and how does it work?

AI is a term used to describe technologies which enable computers to perform tasks that usually require human intelligence. While AI tools use a range of different technologies, many newer technologies utilise real-world data to mimic how humans learn, reason, and make decisions. In recent years, a range of new AI tools have emerged and become available for use within commercial settings. These are described below:

Generative AI models: Services which can create new multimedia content (text, image, and video) based on user inputs or prompts.

Example: Large Language Models such as ChatGPT can generate new text based on user prompts.

Customised generative AI tools: Services available to businesses which leverage generative AI to perform a specialised service.

Example: Tools which leverage services like ChatGPT in the back end to perform a specific task such as search engine optimization (SEO).

Narrow AI: Goal oriented tools which are highly effective at performing a specific task.

Example: Smartphone assistants are programmed to perform specific tasks such as making a calendar entry and can become familiar with user preferences over time

Algorithms and automation: Tools and techniques which apply a set of rules and responses to minimise the need for human involvement in a process (though may not always be classified as an AI tool).

Example: A smart form which automatically populates the details of its user based on information previously provided.

What can AI do for your small business? 

AI has been revolutionary for many small businesses. Here are some ways it can help your business: 

Increased productivity: AI can automate many time-consuming routine and repetitive tasks. This can range from managing your emails and scheduling appointments to managing your inventory or even quality control of your products. 

Improved decision-making: AI tools can help analyse large amounts of data that your business generates to provide actionable insights. This can assist you in making more informed decisions, whether it’s identifying market trends, enhancing your product or service, or streamlining your processes. 

Enhanced customer experience: AI can also be used to improve your customers’ experience. For example, chatbots can provide 24/7 customer support, and recommendation systems can help personalise your customers’ shopping experience. 

Source: Can Artificial Intelligence help your business? | NSW Small Business Commissioner