How to use AI to grow your business

In the past decade, artificial intelligence (or AI as it is more usually called) has become much more of an everyday thing for people all over the UK – whether they realise it or not. 

AI enables the rapid facial recognition that unlocks our smartphones and it allows us to tell Alexa what music we want to listen to. Google Photos uses AI to group our images by people, places or events, while NHS 111 online uses AI to triage symptoms and suggest next steps. Many UK retailers use AI-powered chatbots to answer customer queries and banks use AI to prevent fraud. 

Although concerns have been raised over the implications of AI, it is already benefitting millions of people in the UK, including many business owners. AI is delivering significant effort, time and cost savings, enabling many SMEs to be more efficient, productive and profitable. Read on to learn how AI could do the same for your business. 

What is AI? 

Artificial intelligence (AI) describes the ability of machines or software to perform tasks that typically require human intelligence. This includes learning from data, recognising patterns, making decisions and solving problems. AI can automate repetitive tasks and analyse large amounts of information rapidly. Businesses of all sizes operating in a variety of sectors now use AI to boost their efficiency, productivity and profits. As AI continues to learn, evolve and improve, many more businesses are expected to use it much more often.  

Generative AI v traditional AI

• Generative AI is a type of AI that creates new content, including text, images, music, video or code. 

• Traditional AI (alternatively called narrow AI or analytical AI) uses logic or rules to analyse data to make decisions, predictions or recommendations. 

  
  

How are small businesses using AI?

• Customer support: Many businesses use AI-powered chatbots as a cost-effective way to manage customer inquiries, resolve issues and offer 24/7 customer service. 

• Task automation: Many businesses use AI-powered tools to automate repetitive tasks such as invoicing, inventory management, report generation, data entry, etc, which saves them valuable time and money. 

• Marketing and sales: AI can better enable businesses to personalise email campaigns and optimise online ad targeting. AI-enabled predictive analytics and CRM (customer relationship management) software can boost leads and conversion rates, while enabling businesses to retain more customers. AI is also being used to generate marketing and social media content on a scale never previously witnessed. 

• Operations and logistics: AI can play in a key role in streamlining supply chain management. Even small logistics firms in the UK are using machine learning to reduce delivery times and costs. 

• Decision making: AI-driven dashboards and analytics platforms can help owners make smarter, real-time, data-driven decisions. AI can also be used as a sounding board to test your thinking. AI can also help you when you are updating your business plan or evaluating your strategic options when seeking to grow your business.

AI advantages for small firms

Cloud-based platforms and subscription models have made advanced AI tools affordable to even the smallest of businesses. Because they are affordable and easy to use, small businesses can access the same advanced tools as big corporations, enabling small firms to compete and punch above their weight.  

AI can also play a key role in helping small businesses to grow quickly and significantly without having to proportionally increase staff headcount, infrastructure or overheads.  

Did you know? According to Microsoft, widespread AI adoption could add £78bn to the UK economy over the next decade, with small businesses playing a key role. 

Sector-specific use of AI

• Retail: A boutique clothing store could use AI to analyse customer purchase history and send personalised marketing messages and emails, generating repeat sales. 

• Hospitality: A hotel could use an AI-enabled chatbot to field booking queries and upsell other services (eg spa treatments, meals, etc), freeing up staff and boosting revenue. 

• Professional services: An accounting firm could use AI-powered transcription and summary tools to streamline client meetings and generate reports quicker. 

• E-commerce: An online seller could use AI to predict demand, better manage stock and write product descriptions for sales and marketing in much less time. 

• Construction: A UK construction firm could use AI to improve its project planning, enhance its safety measures, reduce costs and streamline operations. AI could also be used to help generate estimates and tender for new projects. 

• Manufacturing: AI could help a small UK manufacturer boost their productivity, reduce waste, improve quality control and make better-informed decisions (eg when to invest in new machinery or premises). 

Examples of popular AI tools for small businesses

• Chat GPT: The widely used generative AI chatbot developed by OpenAI that can understand and produce human-like text, images and speech in response to user prompts. 

• Copilot: According to Microsoft, its AI-powered assistant is “designed to help you work, learn and create more efficiently across devices and apps. It’s your everyday AI companion,” built into Windows, Microsoft 365, Edge, etc.  

• Google Gemini: It is integrated into Google Workspace tools such Gmail, Docs and Sheets, making it accessible and practical for everyday business tasks. 

• Canva Magic Studio: AI-powered creative toolkit built into Canva that helps users design, edit and generate content faster and more efficiently.  

• Hubspot AI: Suite of AI tools called Breeze designed to enhance marketing, sales and customer service within the HubSpot platform. It helps businesses automate tasks, personalise customer interactions and make smarter decisions. 

• Zapier AI: Uses AI to streamline workflows, connect apps and build custom chat bots without the need for writing code. Designed to help businesses save time by automating repetitive tasks. 

• Many other AI solutions are available, so be thorough when researching AI options best suited to your specific needs. 

  
  

How to get started with AI

Start by identifying tasks within your business that are repetitive, time-consuming and expensive, perhaps where mistakes are more common. Think about how AI could save you time and money. Speak to your team and see whether they can suggest pain points or AI solutions. If you have budget, seek advice from an external consultant. 

Thoroughly research cost-effective AI solutions that can be easily integrated with your existing systems and processes. Take advantage of any free trials and low-cost plans for limited users. Also find out what support and onboard training is available. 

Do not go too big too soon. Trial one AI tool in a single area, measure its impact, learn lessons and plan before expanding AI into other areas. 

Train yourself and your team so that you have the necessary skills and knowledge to get the best return from your investment in AI. It should bring significant effort, time and cost savings, while enabling your business to be more productive and profitable.  

Common AI mistakes to avoid

Avoid becoming over reliant on AI. It should complement human judgement, not replace it totally. Carefully consider your AI outputs – never just blindly follow them, because they may not be right in every instance.

See AI as a tool rather than a magical solution. While AI is powerful, it can be flawed. AI can “scrape” (ie source information) from poor-quality data, while you also need to ensure that your own data is accurate and up to date.

Be driven by your business goals. Use it strategically in specific areas of your business, monitor the results using metrics that matter and learn lessons. Just as AI can improve over time, so can your ability to get the very best out of it. 

AI for business key takeaways

• AI describes the ability of machines or software to perform tasks that typically require human intelligence. 

• Many UK SMEs are already using AI. It can deliver significant effort, time and cost savings, enabling greater efficiency, productivity and profitability. 

• Generative AI creates new content, including text, images, music, video or code. Traditional AI (AKA narrow AI or analytical AI) uses logic/rules to analyse data to make decisions, predictions or recommendations. 

• Cloud-based AI platforms and subscription models have made advanced AI tools affordable to small businesses. 

• Avoid becoming over reliant on AI. See AI as a tool rather than a magical solution. AI is fallible.