How to Approach AI as a Small Business Owner

 

My first thought about writing a blog about AI for small business was to let AI do it.

I will admit, I tried that and the blog is on my desktop. In all honesty, it took less than 30 seconds to type in the question and get a response. Typing this will take much longer as I did not follow my mother’s advice in Junior High and take a typing class.

Since AI (Artificial Intelligence) is still in its nascency, there are many opinions about what it can do and what it will eventually do. Some think it will end up being a fad, some are completely skeptical, some feel that it can help run their business and life more effectively, and some think it will become the “Terminator Scenario” – hello SkyNet.  Of these scenarios, it is hard to believe that the first or fourth scenario is true. AI is here to stay and the important question is: can it really help me run my small business?  The answer is yes, to an extent.

What does that truly mean for a small business owner?  I would offer five items to consider when thinking about AI:

1. AI is not going away—you cannot ignore it forever.

Just like the PC, the Internet, cell phones, AI is not a fad, but an evolution.  It is going to continue to grow and eventually evolve into something bigger.  Do not believe that: imagine your life now without your PC, the Internet, or heaven forbid, your cell phone.  It’s OK to be skeptical, but it is not OK to ignore it.

2. Start learning about AI.

Start slow. You do not need to spend thousands of dollars of dollars to start learning about AI. In fact, to start, it will be free.  Sign up for a ChatGPT account and start asking questions.  Example prompt: “Help me understand these documents: balance sheet, P&L and cash flow statement.” It is not hard and can be fun!

3. The output of the AI is dependent on your input.

The more context you can provide, the more helpful it can be.  For example, ask it a couple of questions like: “Please provide a job description for a mechanical engineer” versus “I am head of the engineering department for a mid-sized food processor located in the Midwest and I am looking for a job description for a mechanical engineer that will be used to recruit my next new hire”. You will be amazed at the difference.

4. Recognize that the data is unaudited and may not be 100% accurate.

AI can only pull from data that is available and the database grows by the minute. Many data items only go up to 2022, so if you are looking for something more recent, you will need to go to other sources or pay for a subscription since that has later data. If using AI output for business decisions or public presentations, make sure to read it and possibly do some fact checking. AI use will save you time, but recognize its limitations.

5. Evaluate some tasks that you believe AI could help you with right now.

Identify a task, list the steps involved in completing that task, define the end goal (start with the end in mind), and gather the information and do the work. Items that we see are good examples of this include the writing of job descriptions; writing out processes – HR and Operations are good places to start – and simple demographic or competitor questions.

At the Michigan SBDC we see three camps of AI acceptance and/or use:

1. I am going to continue to wait and see, because I cannot see its value for my business.
2. I am at the beginning stages and have experienced some success with simpler tasks.
3. I have ingrained it into my culture and are using it to actively find new clients or create sales and marketing campaigns.

In conclusion, to paraphrase Smokey Bear, “only you” can determine if AI is good for your business. That said, ignoring it is not a good strategy. Like the Internet, it is not going away. Who knows, you may find out that you like it, and it is helpful for your business.

Dale Anderson
Business Growth Consultant
Michigan SBDC Growth Team

Dale is a marketing and corporate strategy professional who has many years’ experience of new product development, product rationalization and creating marketing organizations. He began his career in corporate finance and corporate strategy positions before spending 20+ years managing marketing for national brands and running his own marketing consulting firm. He joined the SBDC in 2017. Dale earned an MBA from the University of Wisconsin School of Business and a BBA from the Ross School of Business at the University of Michigan. He also holds FINRA Series 7 and Series 66 licenses.

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