Description of small businesses
There are many indicators used to describe a small business, the number of employees, the sales volume, or the budget. Independently of the definition used, it is certain that it can too leverage the artificial intelligence revolution that is now happening. Yes, small business owner, you too can leverage AI just like the big guys.
The trickle-down effect of AI
Artificial intelligence has actually been around for a long time. Launched in the 50s, it was first used to translate between languages, for example from French to Chinese or in the other direction. Technological advancements happened every decade to allow machine learning to be used in almost every industry.
Much like the development of new technologies in other fields, after a while, the cost decreased as the capabilities developed. For example, the race to the moon helped the overtime cost of computer chips to drop significantly. In addition, as the luxury segment of the automotive industry has developed new safety technologies, the costs have come down, which today allows the technology to spread into moderate and even low-end car models.
In addition, the cloud, an IT concept that allows individuals and businesses to access software that they may not have on their own computers, has reduced the costs of using technology.
In addition, as the power of computers doubles every 18 months, it is possible to access more powerful and less expensive processing capacities. This means that there is greater potential to implement AI solutions.
Thanks to these advancements, 45% of work activities could potentially be automated using current technologies, and machine learning can provide 80%, according to a study by McKinsey and other big consulting firms.
Segments that use AI effectively
Today, AI or machine learning can be used profitably in many aspects of a business. For example, companies are using AI to improve their relationships with customers. Its use reduces costs while personalizing customer support.
It is also used in the field of human resources to automate certain elements of the hiring process and to help managers make decisions.
AI is also used to train a workforce and improve forecasting. For example, one company, Udacity, an educational organization, improved its sales by 50% when it introduced chatbots for its sales team. A chatbot is a computer program that can communicate through a written conversation. The software helps humans close a sale based on sets of words, conversations, and information gathered from the customer.
The tremendous advancements in algorithms, data, and infrastructure, along with the cost of acquiring them, have helped lower the overall cost of AI, making it affordable for small businesses.