AI isn't just for the big guys: all SMEs need to embrace AI
The common thread appears to be an uptick in aggressive tactics by larger corporations targeting these smaller businesses. The owners feel overwhelmed and are struggling to compete. They fear being pushed out of the market altogether. This trend is causing concern among local business communities.
In recent months owners of local small-to-medium-sized and family-run businesses have reported the same, disquieting stories. The details are unexpectedly similar and their frequency suggests they are part of a pattern, rather than a series of coincidences. The companies in question are usually established and successful, many have held their own against larger, more technologically advanced rivals in the past, but more recently they have noticed a tailing-off in their performance. Nothing to become overly worried about but concerning enough to ask some questions.
What is unusual is that the same malaise hasn’t affected their competitors who, if anything, appear to be enjoying a lift in sales, advertising for new staff and boasting about their successes on social media. This has happened at a time when the companies in question weren’t doing anything differently to what they had done previously, when they were level pegging with their competitors. So, what had changed?
Perhaps that’s the point. They have not been doing anything differently, while their competitors have embraced artificial intelligence (AI), using it in ways that have given them a significant, commercial advantage. The unease felt by these business owners is not imagined. Rather, it is illustrative of a growing realization that the impact of AI is already being felt at all levels of the economy. Late and non-adopters are being forced to confront the reality that traditional ways of working, familiar routines and processes, are no longer sufficient to guarantee success.
The Impact of AI on Businesses
A new competitive landscape is emerging, where AI is the defining factor separating the leaders from those struggling to keep pace. The AI revolution is not just a trend for tech giants or multinational corporations. It affects businesses of all sizes, in every sector, from local service suppliers to global manufacturers. Those who have embraced AI have already been able to streamline operations, understand customers better, and make data-driven decisions faster and more effectively.
In contrast, those who have hesitated can already feel themselves being left behind, struggling to compete with AI-powered rivals who are operating with a new level of speed, precision, and insight. This dichotomy is evident from a range of studies, including recent research by Small Business Britain, which showed that 38% of small-to-medium-sized enterprises (SMEs) have already adopted, or are considering adopting, the technology.
Challenges in AI Adoption
However, if you are struggling to get to grips with AI or don’t know where to start, don’t worry, you’re not alone. Another study by the British Chambers of Commerce (BCC) and Pertemps Network Group (PNG) showed that, while SMEs acknowledge the potential of AI to boost productivity, adoption remains limited. It found that while 25% of firms are already using the technology, 43% have no plans to adopt it. Sectoral differences are significant, with business-to-business (B2B) companies leading in AI adoption at 33%, while manufacturing lags behind at 19%, with 49% stating they have no plans for implementation.
The Future of Business in the Digital Age
The world is changing, technology is changing and consumer expectations are changing. Embracing AI isn't just about adopting new tools; it's about transforming the way businesses operate, innovate, and compete in the digital age.
Iain Wham is managing director of Ayr-based Innovec, an IT support provider based in Ayrshire and Glasgow Agenda is a column for outside contributors. Contact: agenda@theherald.co.uk