It was in 2023 when artificial intelligence (AI) finally gained mainstream popularity. After the launch of OpenAI’s ChatGPT 4 and other large language models (LLMs), everyone was suddenly talking about how AI would disrupt business and the workplace. A year later, a lot of businesses, especially small and medium-sized enterprises (SMEs), are still scrambling to figure out how AI fits into their business processes.
In the US, small businesses are adapting at a more rapid pace than anywhere else in the world. According to the survey on AI Adoption conducted by the Small Business & Entrepreneurship (SBE) Council in October 2023, 75 percent of the businesses surveyed were already utilising AI tools in their operations.
Meanwhile, many small businesses in Singapore are still in the planning stage of AI adoption and implementation. Some businesses cite a lack of skilled workforce and budget constraints as challenges to fully utilising the capabilities of AI. However, with Singapore’s SMEs making up 99 percent of the country’s total proportion of businesses and accounting for 71 percent of total employment, it’s vital for the country’s economy and status as a Smart Nation to get SMEs on board with AI adoption as soon as possible.
Integrating AI into your business processes may require investment in customisation of tools and upskilling of workers, but the return on investment may be worth it in the long run. From improved efficiency and substantial savings, AI can streamline and revolutionise your business operations.
6 Reasons for Integrating AI into Your Business Processes
If you need more convincing, below are compelling reasons why entrepreneurs should consider adopting AI technology in their businesses:
1. Improves Efficiency and Productivity
AI excels at automating repetitive tasks, allowing your employees to focus their time and energy on strategies or productive capacities with greater business impacts.
An example where AI technology proves invaluable is in automating data entry processes within your system, including tasks like transcription and record updates. With an automated system, your business will be able to process vast amounts of data, a task that was previously impossible with just human data encoders.
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2. Reduces Manual Errors
Human errors can be costly for businesses, leading to wasted time, wasted financial resources, and potential reputational damage. By integrating AI into your workflows, you can minimise the risk of manual errors.
In data entry, for example, encoders can simply scan documents into an AI-powered data entry system. Using optical character recognition (OCR) and natural language processing (NLP), AI can extract information, validate its accuracy, and update databases with minimal human intervention. This can reduce common errors like typos and incorrect data entry.
3. Generates Substantial Savings and Revenues
Cost-saving and revenue-generating opportunities abound with AI-powered automation. In fact, according to the study by global management consulting firm, McKinsey & Company, generative AI technology has the potential to add USD 2.6 trillion to USD 4.4 trillion to the global economy annually. Note that this is limited to 63 use cases that the firm analyzed.
With the reduced need for manual labor and streamlined business operations, you can gain significant savings in areas such as payroll, inventory management, and energy consumption. What’s more, new business models borne from this AI revolution can provide new job opportunities as well as revenues from services and products that never existed before.
4. Provides Better Data Insight
Data is the lifeblood of modern businesses, but extracting actionable insights from vast amounts of data can be challenging, even for a seasoned data scientist.
In this case, you need AI algorithms that excel at processing and analysing large datasets. These algorithms are designed to uncover valuable patterns, trends, and correlations that can inform strategic decision-making. With AI-driven analytics tools, you can gain deeper insights into customer behavior, market trends, and competitive dynamics.
5. Enhances Customer Service
Delivering exceptional customer service is essential in today's highly competitive market. However, the cost of outsourcing or establishing a call center to take care of customer service can be cost-prohibitive.
As a solution, AI-powered chatbots and virtual assistants were created to enable businesses to provide round-the-clock support while personalising interactions based on individual preferences. Data from IBM reveals that chatbots handle 80 percent of routine tasks and customer queries. Moreover, chatbots had a 90 percent success rate in 2022.
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6. Delivers High-Quality Leads
Identifying and nurturing high-quality leads is essential for driving business growth. Before AI, companies have to hire teams dedicated to generate leads from superficial data, resulting in non-targetted marketing campaigns with mixed results.
With the adoption of AI algorithms, mining and analysing vast amounts of customer data to identify potential leads, predict buying behaviour, and tailor marketing campaigns accordingly are now automated. You can increase conversion rates and maximise your return on investment by targeting the right audience with personalised messages and offers.
Integrating AI into your business processes offers a multitude of benefits that can drive innovation, efficiency, and growth. Through proper utilisation of AI technology, you can position your businesses for success and seize opportunities for competitive advantage.