Although AI tools have significantly impacted large corporations, their adoption in smaller businesses has been relatively conservative. Proponents, however, attest to AI’s potential to enormously aid smaller entities in improving their processes, driving efficiency, and fostering innovation.
Allison Giddens, co-president of Win-Tech, is an active advocate for the use of AI within smaller firms. Despite smaller businesses’ financial constraints, Giddens argues that they could significantly benefit from implementing AI solutions. Win-Tech, for example, uses AI tools in its manufacturing processes and has seen improvements in consistency and reduced human error.
The Nashville Chamber of Commerce annually hosts a meeting focused on AI’s potential benefits and challenges. In these sessions, experts delve into how AI could boost productivity and equip businesses to compete effectively in the digital world. Chamber members are encouraged to seize the potential of AI to upgrade their operations and customer services.
Ralph Schulz, the Chamber’s President, and CEO, notes that business leaders’ fear of AI stems from a lack of understanding.
Exploring AI’s potential in small businesses
Through educational initiatives, Schulz aims to fill this knowledge gap and provide businesses with the needed skillsets to optimize the use of AI.
Generative AI, which gained prominence in late 2022, has dramatically enhanced productivity across various fields. From coding to graphic design, it is reshaping workflows and leading to sizable gains in efficiency. Furthermore, continuous advancements are expected to foster even more groundbreaking applications in the future.
Despite current slow adoption rates—just 5% of nationwide companies utilize AI—economists predict impactful changes. Particular sectors expected to benefit most include education, healthcare, and manufacturing, where AI could revolutionize patient care, transform learning experiences, and increase production efficiency, respectively.
However, challenges such as data privacy, algorithmic bias, and job losses due to automation remain. Despite these, the economic potential of generative AI should not be overlooked, making it wise to invest in AI technologies.
Philipp Carlsson-Szlezak, Boston Consulting Group’s global chief economist, acknowledges potential economic shifts due to AI within the next five years. He announces that the healthcare, manufacturing, and financial sectors are most likely to experience significant changes. He further states that failure to adapt may hinder competitiveness, illustrating the importance for firms to invest not only in AI but also in employees’ AI readiness.
