Exploring AI for Small-Medium Businesses: From How? to Wow!
By Ilya Ilienko, MBA, CMA, CPA, CFO
You don’t have to visit your nearest Blockbuster to rent a movie anymore – or even wait for a DVD to arrive in the mail. Redbox kiosks? Practically obsolete. We’ve come a long way, with on-demand streaming from Netflix, Hulu, and countless other platforms. But mainstream adoption of new technology always takes time. People resist change, sticking with what’s familiar and comfortable. Yet familiar doesn’t always mean better.
The same reluctance applies to AI. A U.S. Chamber of Commerce 2024 study found that 98% of small businesses are already using an AI-enabled tool, and 91% of owners are optimistic that AI will fuel future business growth. In the last year alone, according to the study, the use of generative AI tools, such as chatbots and image creators, grew by 40%.
One of the most compelling reasons small business owners are turning to AI is the rising challenge of labor shortages, payroll expenses, and operational costs. According to Forbes, “Labor costs make up 70% of [small business owners] expenses, and a national labor shortage of 2 million workers is exacerbating the difficulty of hiring and keeping talent.” This aligns with firsthand accounts from small business owners within IMA’s Small Business Shared Interest Group (SIG), including those in the food and beverage sector, who report persistent staffing challenges affecting every aspect of their operations.
But for those who haven’t explored AI yet, think of AI as the internet – on steroids. It may sound complex, but it doesn’t have to be. Small businesses don’t need to go all in – AI can start as a simple tool to improve financial insights and decision-making. It can even serve as a thought partner, helping refine ideas before a big meeting.
So where should you begin? Many AI platforms offer easy, low-risk entry points. As Forbes noted in From Startup To Scale Up: How Small And Medium-Sized Businesses Can Leverage AI, businesses can start with stand-alone AI features which can then be integrated seamlessly into your workflows – if they prove useful. Tools like ChatGPT, Microsoft Copilot, and Perplexity allow for quick, practical applications. Here are just a few use cases:
· Uploading an anonymized Profit & Loss statement (P&L) and asking:
o What were my top three expense categories last quarter?
o Are there any cash flow concerns?
o Can you show examples of similar companies with stronger P&Ls for comparison?
· Uploading a vendor contract and asking:
o Are there any omissions, inconsistencies, or risk factors?
· Uploading a draft of a policy and asking:
o Can you tweak this policy to make it more streamlined and tailored to our business?
o Can you highlight key areas for review?
These platforms are designed to be intuitive, making them a great starting point for small business owners.
Other practical AI-powered tools and applications include:
- Automated transcription services for quick meeting notes.
- Live translation tools for businesses working with international clients.
- Grammarly for improving writing, such as drafting policies, emails, customer communication, and website content.
- Zapier for automating repetitive tasks like data entry, email follow-ups, and invoice reminders.
· AI-driven coding assistants to help automate and debug software development.
· Product development tools that assist in sandboxing, prototyping, and market research.
· Customer service chatbots that enhance response times and efficiently route queries.
· Marketing, SEO, and other optimization tools for content generation, ad targeting, and campaign analytics.
· Competitive analysis platforms to provide insights into market trends and competitors’ strategies. (Forbes, 2024)
AI isn’t just for tech giants – it’s accessible to small businesses right now. By starting small and testing free, no-signup-required tools or free trials, business owners can unlock valuable efficiencies and insights. Think of AI as a search engine on steroids – the potential may blow your mind and you’ll get hooked!
To learn more, visit IMA’s new AI Center, where you’ll find courses, podcasts, and blogs on AI adoption. There’s also a curated library of some of the most forward-thinking AI articles from 2024 and 2025. My next stop? The free four-part Power of AI Series webinars on AI applications, automation, risks, and ethics.
Thanks for reading,
Ilya I.
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