How SMEs can make AI work for them
By Johann Aguirre, founder of Cachi AI
The use of artificial intelligence (AI) in UK businesses has increased from around 12% to around 35% since late 2023, according to the Office for National Statistics.
That being said, data shows that adoption varies significantly depending on business size and market sector.
Where large and established businesses may be implementing AI in complex ways, for example using AI powered robotics, digital twins or autonomous manufacturing, that doesn’t mean there’s not a valid place for AI when it comes to SMEs.
Saving time on repetitive tasks
SMEs are much more likely to be using AI to automate repetitive or menial tasks that are less nuanced and don’t require the creativity, logic, insight, analysis, and opinion that can only come from real people.
That way, employees are freed up to do those jobs that the company would much rather have a real, living, thinking person working on.
A great example of this is customer service. You can look at customer enquiries as a pyramid where the base, i.e. the largest portion, tends to be quick and easily answered questions, but a smaller portion of enquires are more complex and require in-depth, considered responses.
By using AI powered chat bots as the first line of defence, the vast majority of customer enquiries can be answered within seconds, day or night. This frees up employee time to answer more complex, or nuanced questions, with the overall result being fewer employees needed in customer service roles, and quicker answers for both those answered by the chat bots, and those that are not waiting hours for a human operator to become available.
Other common uses of AI for SMEs include processing invoices, qualifying potential leads, screening CVs for essential information, and scheduling meetings.
Consolidating software
While these are all valid and beneficial uses of AI, the strongest return on investment comes from consolidating software.
Rather than being added as a standalone piece of software, AI tools can replace multiple manual tools that are not designed to work together and cause overall operations to become clunky and inefficient.
It’s not unusual for SMEs to be paying for separate tools, covering meeting transcriptions, customer support, email marketing, content writing, data analysis, and so many other functions.
These software-as-a-service (SaaS) systems don’t come cheap and can cost business owners significant monthly sums.
What’s more, workers can lose significant amounts of time switching between apps and inputting information from one system into the next to perform some business processes.
This constant manual movement of data opens up opportunities for human error; even the most capable employees are not immune to mistakes.
If AI can search across systems, summarising information and carrying out repetitive tasks, employees can stay in one interface for more of their work, plus spend their valuable time on tasks that genuinely require their expertise.
Even a saving of 20 minutes per day can add up to substantial gains over the space of a year, or even a month. Some SMEs have reported saving up to £500 per month, purely by using AI to consolidatie software systems.
Another argument for consolidating software is easier governance and security. Managing fewer individual vendors and platforms means there are fewer log ins, and therefore fewer entry opportunities for cyber-attacks. Logistical factors like compliance and data retention are also simplified, saving SME owners time and, ultimately, money.
Cutting the tape
It’s no surprise that SMEs have less red tape when compared with larger companies; they typically have fewer layers to the organisation and faster decision making. Of course, they face the same legal and security requirements of larger businesses, but processes within the company are often more streamlined.
As a result, new technology like AI is implemented more quickly. An SME owner often takes the role of department head, IT, legal, and finance, which makes it obvious why those decisions can be made faster.
Even when multiple voices are involved, employees tend to work more closely together and feedback is direct or at least reaches decision makers quickly.
While large companies frequently face formal governance involving risk assessments, pilot programmes, and potentially even voting systems, an SME owner is able to make the decision they see fit for their business without much, or any, friction.
Where to begin
It might actually be best to first explain where not to begin. Business owners excited by the potential of AI might be tempted to try and automate everything at once, running before they can walk, and choosing projects without clear direction.
Start small. Begin with manual, repetitive tasks that are simple, but require time investment from you or your employees. Great examples are summarising meetings, entering data, or processing invoices. Each of these activities takes a significant amount of time but are well suited to AI assistance. It’s best to avoid complex or critical projects to begin with, so risk is minimal.
Don’t forget, the best use of AI is where it improves our lives. Which tasks do you dread? More often than not, those are the menial, time-consuming tasks that you know take up precious time that should be spent on more productive, creative, or interesting activities.
Prioritising high-frequency tasks will help business owners get the most out of their AI from the outset. A task that takes five minutes but is performed 200 times a week will undoubtedly offer a better return than one that takes two hours but only happens once a month.
To understand what’s working, make sure there’s measurable outcomes. You could look at hours saved per week, reduction in processing time, or reduced errors. This will help you understand whether your AI is actually adding value, and if not, redirect your use of it. This is especially important for SME employees who are implementing AI but are reporting to managers; if success can’t be measured, it’s hard to demonstrate ROI.
Busting a few myths
Lots of SME owners recognise that AI is becoming important, but hesitate due to some common myths.
One of the primary fears when it comes to AI is that it will replace employees. Owners worry that AI adoption will create fear, resistance from employees, and even job loss. But for SMEs, AI is best for augmenting employees, rather than replacing them; in other words, making their lives easier. By involving employees in the process and asking them to help identify pain points, you can ease anxieties and implement AI where it’s most needed.
Many assume that the technology is only available to large companies with big budgets. They think they’ll need to invest thousands before seeing any return. In reality, the strongest early returns come from simple AI applications, and the benefits to SMEs are just as significant as those bigger businesses.
Some SME owners worry that AI makes too many mistakes and could lead to inaccuracies within the business. This is a fair point; if implemented incorrectly, lazily, and without frequent review, AI will make mistakes. After all, it’s not a magic solution, and is only as useful as the inputs it’s provided with. AI outputs should always be reviewed, especially when it’s being used for important decisions. Introducing human approvals is essential, and if you’re going beyond off-the-shelf- AI tools, bringing on an AI engineer could save a headache later down the line.
Conclusion
AI isn’t just for large companies with budgets to match. For SMEs, the biggest opportunities come from solving every day, repetitive challenges so employees are free to focus on higher value, creative tasks.
Those that start by identifying practical problems and pain points for their employees, then test simple AI solutions to reach measured outcomes are the SMEs that will actually benefit from the AI revolution.
Johann Aguirre
