HERE’S HOW AI WILL TRANSFORM SMALL BUSINESSES

– Meredith Wood, Vice President and Founding Editor, Fundera

Artificial intelligence, or AI, has become such a way of life for millions of people across the world that many people don’t even know they’re interacting with the technology on a daily basis. It’s estimated that only 33% of consumers think they’re using AI-powered technology when, in reality, 77% are already doing so, according to PEGA.

Large consulting firms like McKinsey and PricewaterhouseCoopers estimate that AI will add $13 trillion and $16 trillion to the global economy, respectively, by 2030.

Surely, AI and other automated technology is the way of the future, and businesses are mistaken if they don’t start investing in this technology, but how can the average business realistically get in on the AI revolution?

 

AI Will Be an HR Lifesaver

Businesses that integrate AI into their HR practices will find themselves far outpacing their competitors. Take, for example, recruitment. In the era of job hopping and asymmetric information, recruiting candidates who are the right fit and who will not leave in a couple of months, is one of the most difficult challenges facing businesses.

AI can help with that. Businesses can set up hiring games that measure applicants’ personality traits and assess how well they might fit. The results of these games can be compared to businesses’ most productive employees and used to make hiring decisions. It’s estimated that these games alone can save businesses up to 250 hours and up to $20,000 per year in recruiting resources.

That’s a far cry from a common misconception out there that AI is expensive and costs businesses more money than it saves them. These recruitment games can be set up with relatively few financial resources.

After the onboarding process, however, there’s still the need to train new hires. This can be significantly time consuming and expensive. (The onboarding process can take up to three months for small businesses.)

But there’s a lot of HR software out there that can help automate the onboarding process. For example, certain software records employees’ everyday tasks and create easy how-to videos, which can be shown to new hires and can significantly accelerate the onboarding process.

 

Meredith Wood

AI Will Speed Up Boring Tasks

In the same way that AI helps recruiters and HR professionals cut down on repetitive, but necessary, tasks, AI can also speed up the mundane administrative tasks that business leaders face every day.

Business leaders are increasingly turning to AI to cut out repetitive tasks like paperwork (82%), scheduling (79%), and timesheets (78%). Think about Google Assistant, for example, that has been downloaded on more than 1 billion devices. Millions of people use it to learn the weather, set a reminder, or send a memo. Applied to business, virtual assistants can search for the best flight deals or sift through mountains of emails. The applications are virtually endless.

 

AI Will Make for Better Business

By next year, a whopping 30% of businesses will be using AI in at least one of their sales processes. Why? Because it’s inefficient not to use AI here. Not only can AI increase sales volume by allowing employees to follow up on leads and automating repetitive tasks, it can also significantly improve the customer experience.

Most customers expect businesses to be available for their needs 24/7. Many businesses cannot staff a call center at all hours of the day and night. But chat bots are always available and can calm angry customers at any time.

 

AI Will Keep an Eye on Employees  

Many people associate AI with Big Brother and a sense of total surveillance. But surveillance can be used for good within businesses. For example, audio and video AI technology can detect stress in people’s voices and movements. Some employees use this technology to spot bullying and sexual harassment in the workplace.

An easier and more widespread application of AI relates to what employees wear on their wrists. Certain businesses provide free FitBits or other wearable devices to their employees to track their sleep and exercise habits. This can encourage employees to live healthier and more active lifestyles and, ultimately, to be more productive at work.

Many people fear AI because it strips businesses of their human elements. Some employees fear that it will take their jobs. The reality is that, by next year, AI will eliminate 1.8 million jobs but create an additional 2.3 million. Sure, AI is expensive, but it also has the potential to save businesses millions of dollars each year by cutting out unnecessary tasks and boosting productivity.

Fundera created an infographic with nine ways AI will transform businesses in the future.

 

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