10 ways to use AI for small businesses

Small businesses are constantly seeking ways to boost efficiency and grow, from tools to automate routine tasks or improving customer service with responsive workflows, finding the right solutions is key. Recently, Artificial Intelligence (AI) has become a game-changer for businesses of all sizes. From streamlining operations to making data-driven decisions, AI offers practical ways for small businesses to stay competitive. Let’s explore 10 simple ways you can use AI to enhance your business and achieve more with less effort.

What you should know when using AI for your business


Before we start, let’s look at how AI can transform your business. AI tools can automate tasks, analyze data, and improve customer service with chatbots. Choosing the right AI solutions can help your business run more smoothly, stay competitive, and achieve long-term success.

How AI can help small businesses

 

Automation

AI can automate repetitive tasks like data entry, scheduling, and inventory management. For example, a small retail store can use tools like Zapier to automatically update inventory levels across multiple platforms whenever a sale occurs. This not only reduces the risk of human error but also saves staff time. 

Data analysis

AI business tools can quickly and accurately analyze large amounts of data. For instance, a small online shop can use Google Analytics to track visitor behavior. They can identify which products are popular and which marketing strategies drive traffic. By understanding customer preferences and trends, the business can make better decisions about inventory, marketing campaigns, and product offerings. This can then lead to increased sales and customer satisfaction.

Customer interaction

AI chatbots, like those from Chatfuel and Tars, handle customer inquiries 24/7. For a small e-commerce business, this means customers can get instant answers to common questions about shipping or returns at any time. As these chatbots interact with more customers, they learn from previous inquiries. This allows the chatbots to provide more accurate and relevant responses, which enhances the overall customer experience.

Marketing

AI-driven platforms like HubSpot and Mailchimp help tailor marketing campaigns to specific customer groups. For example, a bakery can segment its audience based on purchase history, allowing it to send personalized promotions on birthdays or anniversaries. By making the customers feel valued, this targeted approach not can increase engagement and drive more sales.

Scalability

AI tools can help small businesses in scaling operations without much additional costs. For example, a subscription box service can use AI to analyze customer purchasing patterns and predict demand for specific items. This helps the business optimize inventory levels and streamline its supply chain. As a result, this leads to timely deliveries and reducing excess stock. Doing so would help maintain healthy cash flow.

Top 10 AI applications & tools for small businesses

 

  • AI website building 

AI website builders make it easy to create professional websites without needing technical skills. For example, Bookipi’s free AI Website Builder helps small businesses create sleek, functional websites quickly while also providing hosting for free. This ensures your online presence is effective and appealing, helping you attract more customers and grow.

For instance, a small retail shop can use the builder to set up an online store. Instead of learning web design or hiring help, they can choose a template, customize the site, and add products easily. The AI makes sure the site runs smoothly, looks good on mobile, and is optimized for search engines. This allows the business to start selling online faster, saving time for other important tasks like marketing and customer service.

  • Content generation 

Tools like Jasper and Writesonic create high-quality content for blogs, social media, and marketing. These AI tools help keep your content strategy consistent without needing a full-time writer.

Tools like Jasper and Writesonic create quality content for blogs, social media, and marketing, helping you stay consistent without hiring a full-time writer. Jasper learns your brand’s style by analyzing your past content, so it can match your tone and voice in new content. This keeps your brand’s messaging clear and consistent across all your marketing.

  • Artwork, presentations & videos 

Create high-quality visuals and videos with AI tools like Canva and Lumen5. These platforms offer easy-to-use templates and design tips, making it simple to create professional content without needing design skills. Canva helps with everything from social media graphics to brochures, while Lumen5 turns written content into engaging videos. With these tools, small businesses can easily produce attractive visuals and videos to improve their marketing and stand out online.

  • Inventory Management

AI tools like TradeGecko and Skubana help you manage inventory by predicting demand, optimizing stock levels, and automating reordering processes. These tools ensure you have the right products in stock without overstocking or stockouts, improving efficiency and reducing costs.

  • Marketing & advertising 

AI marketing tools like HubSpot and Mailchimp help you personalize campaigns, automate emails, and analyze performance to improve your marketing strategy. These tools can group your audience based on their behavior and preferences, ensuring your messages are relevant to each group. For example, by looking at open rates and engagement, AI can recommend the best times to send emails and what type of messages work best for different audiences. This data-driven approach helps you create more effective campaigns and boosts your overall marketing success.

  • Customer service automation 

AI customer service tools like Freshdesk and Zendesk use machine learning to quickly answer customer queries, which improves response times and satisfaction. Machine learning helps these tools analyze past interactions to spot patterns in customer questions. For example, when a customer talks to a chatbot, the AI learns from the context of the conversation, allowing it to give more relevant answers over time. As it handles more inquiries, the chatbot gets better at recognizing common questions and understanding language nuances, leading to accurate and helpful responses. This ongoing learning process enhances the customer experience by providing timely support and increasing satisfaction.

  • Chatbots 

Add chatbots like Chatfuel and Tars to your website to handle customer inquiries 24/7. These AI tools provide instant responses, gather customer data, and process orders. Machine learning helps these chatbots work effectively by analyzing customer interactions.

When a customer asks a question, the chatbot uses machine learning to understand keywords and context, allowing it to give quick and relevant answers. With each conversation, the chatbot learns and improves its responses over time, especially for common questions.

Chatbots can also collect information about customer preferences during chats. This data helps personalize responses, making customers feel valued. As the chatbot becomes better at handling various inquiries, it boosts customer satisfaction and allows human staff to focus on more complex issues. Overall, machine learning enhances the chatbot’s ability to provide efficient support at any time.

  • Customer relationship management (CRM) 

AI CRM systems like Salesforce and Zoho CRM provide insights into customer behavior, automate follow-ups, and help maintain strong customer relationships. For example, let’s say Customer A has a contract that is about to expire. The CRM notices from past records that Customer A usually likes to renew their contract two weeks before it ends.

Using this information, the AI system automatically reminds the account manager to reach out to Customer A for a follow-up. This proactive approach ensures Customer A is contacted at the right time, making it more likely they will renew their contract. By using AI to track customer preferences, businesses can strengthen relationships and improve customer satisfaction while saving time for their teams.

  • Recruitment

You can use AI recruitment tools like HireVue and Pymetrics to streamline your hiring process. This can be done by screening resumes, conducting initial interviews, and assessing candidates. When you input your requirements, the AI filters candidates based on specific keywords related to the skills and experiences you’re looking for. This helps identify those who best match the role.

Additionally, tools like HireVue conduct video interviews, analyzing candidates’ speech and body language to gauge their fit for your company culture. By automating these initial steps, AI recruitment tools save HR teams time and enable them to focus on the most promising candidates. This results in quicker and more informed hiring decisions.

  • Ecommerce 

Boost your eCommerce with AI tools like Shopify’s features for product recommendations, inventory management, and customer service. For example, the AI alerts you when it notices an increase in search volume for a product or category relevant to your store.

This helps you prepare your inventory and adjust marketing strategies to meet rising demand. With AI insights, your eCommerce business can respond quickly to market trends and stay ahead of the competition.

Things to remember when implementing AI in your business


When adding AI to your business, keep these tips in mind:

  • Run a trial first: Start with a simple trial of the AI tool you plan to use. This allows you to test its effectiveness and make adjustments before a full-scale implementation. 
  • Continuous training: Ensure your team is well-trained in using AI tools. AI is constantly evolving, so regular training sessions will help your team stay updated on the latest features and best practices. 
  • Data privacy: Always protect your customers’ and your business’s data. Use strong security measures to keep data secure and comply with privacy regulations.
  • Set clear goals: Define what you want to achieve with AI. It’s easy to fall into the trap of using AI just for the sake of it, but it’s important to know if it is the right decision for your business. Setting clear and achievable goals will help you measure success and make appropriate adjustments to your AI strategy.

For more help, check out the National Artificial Intelligence Centre.

Overcoming challenges & risks


AI has many benefits but carries some risks that you should be mindful of as you begin including AI into your current workflow and processes:

Data privacy and security

AI can bring great benefits, but it also comes with risks. Protecting your data is essential to prevent breaches. Use encryption and security measures, and regularly update your protocols. Training your employees on data protection will help keep your information safe.

Quality control

To ensure AI-generated content meets your standards, regularly check and refine the outputs. Create a system where a human reviews AI decisions to make necessary changes, ensuring the results are relevant and effective for your business.

Ethical considerations

Using AI responsibly is important to avoid biases and ethical issues. Set clear guidelines for ethical AI use and regularly review your systems for fairness and transparency. Making adjustments as needed will help maintain accountability.

By managing these areas carefully, small businesses can reduce risks and enjoy the benefits of AI. With the right tools and strategies, you can improve efficiency, drive growth, and succeed in a competitive market.

To reduce risks, frequently check your AI tools, stay informed about best practices, and address concerns promptly. By adopting AI wisely, small businesses can enhance efficiency and growth. With the right tools and strategies, you can stay competitive and achieve long-term success. Get experimenting!

Table of Contents