Why SMEs Need to Consider AI Now

Understanding the Challenges

We’re sorry to kick off with a negative, but while AI is readily available via solutions like Copilot and ChatGPT, integrating AI into work practices is not always straightforward. Not every SME has the budget for a custom-built AI solution, so identifying cost-effective pre-built AI tools that offer clear ROI potential is a key consideration.

In addition to the software itself, organisations may need high-performance hardware and data storage upgrades capable of handling the compute resources involved. However, ‘pay as you go’ cloud-powered AI models that offer flexible pricing options and can be tailored to specific business requirements are now much more readily available.

SMEs should also focus on putting the right cyber security and compliance measures in place, cleaning and preparing data so it can be leveraged by AI tools, and training and upskilling personnel across the business.

Getting Started: Preparation is Key

Identifying areas where AI is most likely to deliver the most significant impact is a critical first step. AI’s primary strength lies in its ability to automate repetitive manual processes and analyse large datasets.

Setting clear strategic objectives that are focused on core business needs will be important for maximising outcomes. Examples include using chatbots to handle customer queries, optimising inventory, enabling product personalisation, and gaining deeper customer insights.

Ideally, AI projects should be focused on activities where success can be monitored and measured. For example, an online retailer that wants to alter deals dynamically to minimise losing sales could use AI to predict stock requirements and optimise offers in real-time depending on product availability. Undertaking a like-for-like comparison with previous campaigns will reveal how AI contributed to improvements in sales volumes and margins.

Security and Data Privacy

Data protection and regulatory compliance are essential. SMEs will need to choose solutions that feature robust data protection mechanisms. To assure compliance with privacy and security regulations such as GDPR and NIST 2, SMEs will need to implement comprehensive governance frameworks and controls to ensure that customer, employee, financial, or IP data is not inadvertently exposed.

AI ethics and bias pose another challenge. AI systems learn from large databases and, without the right oversight, can perpetuate existing biases that lead to unfair or discriminatory outcomes. To prevent this, SMEs will need to implement checks and balances to mitigate this risk.

SMEs need to ensure that AI responses do not deviate from socially acceptable norms. Stories about rogue chatbots abound, so SMEs will need to ensure that testing and feedback loops are in place so they can refine and fine-tune the models they use.

Integration and Data Management

Legacy infrastructures may not be compatible with modern AI solutions, and SMEs may need to overhaul their underlying IT infrastructure to accommodate new AI integrations. In addition to addressing compatibility issues, additional security measures – such as access controls and encryption – will be required to maintain the integrity of AI systems.

Data is the lifeblood of AI, but before AI can be put to work, it needs high-quality and clean data.  SMEs will need to ensure their data is accurate, detailed, and appropriately prepared in readiness for their AI implementations. Strong data management capabilities, including policies and practices that cover data collection, storage, and usage will be important to mitigate compliance risks.

AI Expertise and Workforce Adaptation

Partnering with specialists like Six Degrees that can provide technical support and expertise will significantly accelerate and ensure the successful deployment of AI solutions. This is particularly important for SMEs that need to be certain they can navigate any complexities that may come up and are deploying the right solutions for their needs. Subject matter experts experienced at rolling out AI tools such as Copilot company-wide can ensure that departmental and function-by-function data and processes are appropriately incorporated and that AI models are built accurately and deliver appropriate outcomes.

Prior to implementation, SMEs should prepare and reassure employees. Providing regular communications and training will address concerns that ‘AI is taking our jobs’ and ensure that the workforce is positive about the benefits of engaging with AI platforms.

Stepping into an AI Future

Today’s cloud-based tools and user-friendly open-source options now make AI more attainable and cost-effective for SMEs than ever before.  Even with limited AI budgets, SMEs can unlock the potential of AI and enable tailored solutions that address their specific business needs.

With the right planning and preparation, SMEs can apply AI to multiple processes and operational challenges. Rather than taking a ‘big bang’ approach, SMEs should aim to take small incremental steps and implement AI in phases.  This approach will make it easier to manage costs, mitigate risks, and gain valuable experience along the way.

Are you looking to take control of your AI future? Speak to our experts to learn how Six Degrees can guide and empower you.

Insert text