SMMEs are Coming Second in the AI Adoption Race
Hello fellow entrepreneurs, it’s not new news that AI is going to revolutionise our businesses. And we are falling behind in the AI Implementation race.
In South Africa, 13% of Corporates have already implemented AI solutions across various functions. Of those, a significant 65% are using generative AI. They’ve implemented solutions in key functions like Marketing, Sales, Customer Service, HR and IT. (Source: Richtman & Mobiloitte).
Of course, big Corporates will have created an entire AI Implementation department, allocated a specific budget, hired consultants, and dedicated people resources.
Entrepreneurs face the constant challenge of balancing working “in” the business and working “on” the business. We are the buck-stops-here person, and often the marketer, salesperson, HR and overseer of finance. While always being aware that we are not just creating jobs for ourselves, but growing a scalable business that has value and can be sold in the future.
The reasons, that I surmise, for slower AI adoption are real tangible challenges that we face and overcome every day.
1. Limited Resources and Perception of High Costs
Our first hurdle to AI adoption is the perceived high cost—not just money, but in time, human resources, and technical expertise. This perception can make AI seem out of reach for smaller businesses - and while we know we have to adapt to win, we put it off while we are dealing with “today’s problems”. And we become anxious that we are falling behind and losing a potential competitor advantage.
2. Time and Disruption
We are concerned about disruption to daily operations. Losing time with integration, productivity and therefore profit, it’s daunting. We have to change the thought (temporarily) , because we know that the long-term successes will outweigh the discomfort/disruptions.
3. The Fear Factor
AI seems big, overwhelming and a bit scary. It feels impossible to keep up with evolving technology. Humans resist change naturally so there will be discomfort at first, as with any technological shift. We worry that we will be replaced and we feel insecure about our skills gaps and understanding new technology.
The good news. We Can Catch Up: This is where to start.
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Start Small with Pilot Programs – Begin with a limited pilot project or proof-of-concept (POC) - perhaps with a marketing plan, content strategy or try a customer service POC and evaluate customer responses. Choose an area of your business that will allow you to test and iterate AI’s capabilities without committing extensive resources upfront. AI tools are becoming more affordable and accessible.
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Get Expert Support – Partner with consultants or AI solution providers who will understand your objectives and help you meet them creating tailor made plans for your business which suit your budget and address your pain points, while guiding you through the process and demonstrating value creation.
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Upskill Your Team – It’s vital to address the psychological barriers to AI adoption. This might be the most important consideration in this process. Knowledge is everything. Training programmes will help your team understand and adapt. “Every single business in the world will be disrupted by AI - this means that every single employee will feel more valuable, more confident, more efficient and empowered” (quote: Daniel Priestly)
Wrapping Up
While we SMMEs may be lagging behind in adopting AI, the gap won’t remain wide in the coming two years. If you have the willingness to start small and learn along the way, you will create a competitive advantage. .