AI presents opportunities for SMBs, but demands careful execution

AI presents significant opportunities for small businesses, but it demands careful execution to mitigate risks.

According to Elise Balsillie, Head of Thryv Australia and New Zealand, attention to data quality is fundamental for successful AI integration. "Many small businesses underestimate the importance of data hygiene. AI needs clean and reliable data to function effectively. Investing in regular data audits and updates is a necessity," she stated.

Ensuring AI is fed with high-quality data can yield valuable insights, preventing businesses from making decisions based on compromised data.

Balancing automated solutions with human interaction is vital, as automation should complement human efforts rather than replace them. A recent Thryv study in the United States suggests AI can save small businesses up to 20 hours per week on tasks such as customer communications and data management. Balsillie noted, "Customers crave genuine human interactions. While AI can handle routine tasks, it's essential not to lose sight of the human element. AI should be an enhancer, not a replacement for human engagement."

She continued, "Small businesses must strike the right balance between automation and personal touch. Implementing feedback loops and maintaining human oversight in customer interactions can help ensure that AI enhances rather than detracts from the customer experience."

Balsillie emphasised the need for continuous training and updates for AI systems, warning that AI is not a static solution. "AI evolves quickly and so should your approach. Many small businesses falter by neglecting to update their AI tools and retrain their algorithms based on new data and shifting market dynamics," explained Balsillie.

Regularly reviewing AI performance and incorporating advancements ensures alignment with evolving business requirements.

Implementing AI without a strategic plan can lead to inefficiencies. Balsillie advised, "AI must also align with your broader business objective. Every AI implementation should have a defined purpose, whether it's enhancing customer service, optimising marketing or streamlining back-office functions." Clear goals can enhance the impact of AI and prevent unnecessary diversions.

The transition to AI can affect existing workflows, necessitating adequate staff training to foster effective use. "AI is only as powerful as the people using it. Investing in staff training not only boosts AI adoption, but also empowers your team to leverage these tools effectively, turning them into AI advocates," Balsillie remarked.

The customer experience is also an important consideration in AI deployment. Poorly managed AI tools can negatively impact customer interactions. "AI should make things easier for customers, not frustrate them. Small businesses need to be mindful of how AI tools affect the customer journey and be ready to step in when things don't go as planned," she stated. Monitoring interactions and collecting feedback helps businesses refine their approaches.

Balsillie summarised, "Imagine reclaiming hours of your week, time you could spend with family, pursuing personal passions or strategising your next business move. AI makes this possible. By approaching AI with a strategic mindset, committing to continuous learning and maintaining the human touch, small businesses can harness AI's power to create more personalised, efficient and impactful operations."