Should You Use AI for Growing Your Business?
Weighing the Pros and Cons of AI For Small Business
In the past 50 years, technology has brought us some incredible innovations. From the computer to the internet to iPhones and beyond, our lives as business owners have been forever changed. But, in the past year, the changes have been enormous. Artificial intelligence (AI) stands out as one of the most discussed and influential tools. Today, I still speak with people who talk about it as something that is coming. But it’s more than that. It’s here now and has been for some time. At our sister company, ASMM Digital Marketing, we have been using generative AI for almost 5 years and even so, we are amazed by the developments in the past year.
But the question remains. Should you use AI to grow your business? Today, I will share my thoughts on AI and small businesses. I hope that I can clarify the landscape for you. As with all technological advancements, there are some pros and cons to implementing AI in your business. Let’s jump in to help you make your decision.
The Positive Side of AI in Business
I spoke with the CMO of a large financial institute recently. He told me that in January he was tasked with bringing 56 newly acquired businesses under the brand umbrella of the main company. He was given two years and a budget of $2.5 million to complete this project. Using AI, he completed it in 2 months for $250,000. As a business owner, numbers like this are hard to resist. There are some real benefits to using AI, including:
1. Enhanced Efficiency
There is no doubt that AI can help your team be more efficient. AI can automate routine tasks, from customer service via chatbots to data entry and analysis. This automation can lead to faster processes and more time for value-added activities. At ASMM, we use it to help build outlines for blogs, to build out a more in-depth persona for your target audience, and to uncover the pain points your customers are facing. AI has made us more efficient and has added value for our clients.
2. Improved Decision-Making
AI's data analysis capabilities mean businesses can glean insights from large amounts of information, leading to more informed decisions. It can help you find trends in your sales or understand better what your data is telling you in a matter of minutes. Tasks that used to take hours can be done in a day.
3. Better Customer Experiences
AI can personalize customer interactions, offering recommendations or solutions tailored to individual needs, and enhancing customer satisfaction and loyalty. I had the privilege of previewing the way Service Titan is using it for their home service clients. The example that astounded me was a phone service that asks a customer who is waiting for the next service agent if they would like to schedule an appointment. It made it clear that it was an AI service but it could handle this task for them. In a matter of minutes, the customer had scheduled the appointment and it was immediately in the service company’s dispatch board. Home service companies cannot keep up with call volume and lose business at an alarming rate because when your AC is out you just don’t want to wait. This AI software is going to be a game changer.
4. Cost Savings
In the long run, AI can lead to substantial cost savings, especially where manual processes are replaced by automated ones. This cost savings does not have to mean letting your employees go. As we know, good employees are hard to come by. So, when AI starts taking on more and more tasks, your employees will be more available to interact with your customers, be more creative with growth solutions, and perform tasks that only humans can do.
Ethical and Security Dilemmas of AI in Business
The story of the Fortune 100 company above can tempt you to jump right into AI for your business. But should it? Consider the story of the Samsung data leak. Members of their staff uploaded data into ChatGPT in order to gain some insights. Unfortunately, it was sensitive data and put the company at risk. This is a very real problem and should be addressed. Let’s take a deeper dive:
1. Data Privacy Concerns
AI systems often rely on vast datasets, which can include sensitive customer information. Without stringent safeguards, there's a risk of data breaches or misuse. Until the data leak at Samsung, most Fortune 100 companies did not have a policy for AI. Now, most of them have a preliminary policy and are working toward creating something that allows their employees to use AI but keeps its data safe. Understanding the risk that it can pose, we, as business owners, need to create safeguards around AI. We need to speak to our employees and create a policy that both benefits and protects our businesses.
2. Job Displacement
The fear I hear expressed most often is that AI will replace much of the workforce. I understand this fear. Automation, though efficient, can lead to job losses in certain sectors. This displacement can have social implications, leading to discussions about the ethical responsibilities of businesses using AI.
3. Bias and Fairness
AI only puts out what has been put in. If not carefully managed, AI systems can perpetuate or even exacerbate existing biases. An AI model trained on biased historical data can make biased predictions or decisions. For example in the medical field, if the data that is put in refers to all doctors as he, data out of AI will be reported as he. The same goes for people of color. Biased information in leads to biased information out.
4. Transparency and Accountability
AI should only be used in conjunction with a human. As AI systems become more complex and people become more reliant on them, understanding their decision-making processes can be challenging. This lack of transparency can lead to trust issues, especially when AI makes decisions that impact human lives or livelihoods. It is important that you let humans do what they do best, creativity and decision making. Using the data provided may be helpful when making decisions but don’t rely on it solely.
5. Security Vulnerabilities
Like any other digital tool, AI systems can be vulnerable to cyberattacks. Sophisticated attackers might manipulate AI models, leading to skewed outcomes. With so many smart people working to build AI software, it is important that some of them are working equally hard to protect the systems from cyberattacks. But do we have that capability yet? Do we even understand the cracks in the system that would allow a successful attack?
To AI Or Not AI, That Is The Question.
The decision to integrate AI into your business operations isn't black and white. While the benefits are numerous and potentially transformative, they come with a set of ethical and security challenges that need addressing.
For businesses considering AI, a thoughtful approach is crucial. It involves staying informed about the latest developments, understanding the specific risks and rewards relevant to your industry, and continually evaluating the balance between innovation and responsibility.
In the age of AI, being forward-thinking doesn't just mean adopting the latest tech but ensuring it aligns with a broader vision of ethical and sustainable growth.
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