AI in small business: Cutting through the hype
Artificial Intelligence (AI) is making noise in the business sector, promising to revolutionize operations and drive growth. However, many small business owners are left wondering how these advancements can be practically applied in their day-to-day operations. They are not so much interested in the future potential of AI, but rather in its current capabilities and relevance to their businesses.
Richard Moloney, Senior Director, Marketing at Sage, a leading provider of business management software and services, shares this sentiment. He understands that small business owners are looking for practical solutions rather than extravagant promises.
“Many small business owners feel that the conversation around AI isn’t meant for them,” Moloney shares. “It can sound technical with big promises that don’t feel relevant if you’re running a plumbing business, a flooring company or a coffee shop.”
AI technology is indeed all around us, but there seems to be a disconnect when it comes to its application in smaller businesses. However, Moloney argues that the real question should be whether AI can help run a business more efficiently.
AI for small business: Solving real problems
The core purpose of introducing AI into small businesses should be to solve real, existing problems rather than focusing on the capabilities of the technology. The main challenges facing most small businesses include cash flow management, regulatory compliance, and saving time.
AI becomes genuinely valuable when it can tangibly assist in addressing these challenges without requiring business owners to invest a significant amount of time to understand it. This practicality is demonstrated in the everyday operations of a business, rather than in futuristic scenarios.
“The biggest wins we’re focussed on are really the least glamorous. Chasing invoices, categorising expenses, reconciling bank transactions, pulling together reports. All of these can build up and create a burden of admin that eats away at evenings and weekends – taking time away from the things business owners are really great at,” Moloney explains.
Cash flow, control, and confidence
Managing cash flow is crucial for small businesses, and this is where AI can have an immediate and significant impact. Automated payment reminders, for example, can improve cash flow and strengthen customer relationships. Furthermore, getting paid seven days sooner can make a huge difference for a small business, reducing stress and increasing financial security.
From admin burden to headspace
Admin is often the biggest time thief in a business. By automating mundane tasks such as writing and sending invoices, generating reports, logging expenses, and reconciling bank transactions, AI can free up a significant amount of time for business owners to focus on more critical aspects of their businesses.
Trust, data, and staying in control
When it comes to financial data, trust is paramount. Moloney emphasizes the importance of transparency, control, and accountability in earning this trust. AI tools like Sage Copilot can provide insights, flag risks, and suggest actions, but the final decision always rests with the business owner.
From reactive to proactive decisions
One of the most significant benefits of AI is the shift from reactive to proactive decision-making. Real-time visibility of cash flow can help business owners identify patterns early on, enabling them to make informed decisions rather than reacting to crises.
AI for small business: where to lean in
While the potential of AI is immense, Moloney suggests starting with repetitive, rules-based tasks that require time to tackle in large volume. He also advises being prudent when choosing an AI provider, ensuring they can adequately answer important questions about data storage, sharing, and usage.
Moloney concludes by emphasizing the real value of AI: “I expect small businesses to find the real value of AI when it is built into secure tools and with deep domain-level expertise. That’s where it can add real, tangible value and it’s where Sage’s 44 years of experience is un-matched.”
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