{"id":94901,"date":"2024-09-10T14:12:26","date_gmt":"2024-09-10T21:12:26","guid":{"rendered":"https:\/\/test-act-main.pantheonsite.io\/blog\/adopting-ai-for-small-businesses-key-challenges-and-best-practices\/"},"modified":"2026-06-22T06:51:32","modified_gmt":"2026-06-22T13:51:32","slug":"adopting-ai-for-small-businesses-key-challenges-and-best-practices","status":"publish","type":"post","link":"https:\/\/www.act.com\/en-gb\/blog\/adopting-ai-for-small-businesses-key-challenges-and-best-practices\/","title":{"rendered":"Adopting AI for small businesses: Key challenges and best practices"},"content":{"rendered":"

\"An<\/p>\n

Embracing <\/span>artificial intelligence<\/span> (AI) solutions is quickly becoming the norm for organizations that want to enhance <\/span>operational efficiency<\/span>. While enterprises have been at the forefront of <\/span>AI adoption<\/span>, small and mid-sized businesses (SMBs) are catching up fast.<\/span><\/p>\n

According to a <\/span>recent survey<\/span><\/a>, 75 percent of <\/span>small businesses<\/span> already use <\/span>AI solutions<\/span>. Also, over 90 percent of SMB owners agree that <\/span>AI tools<\/span> drive cost and time savings and maximise profitability.<\/span><\/p>\n

\"A<\/p>\n

Besides automating routine tasks, <\/span>AI systems<\/span> can help <\/span>small businesses<\/span> improve <\/span>customer experience<\/span><\/a> and <\/span>decision-making processes<\/span>. Plus, they help forecast cash flow, sales, and market demand. They can even identify fraudulent transactions, human errors, and unusual activities. Significant <\/span>cost savings<\/span> is yet another advantage of <\/span>AI implementation<\/span>.<\/span><\/p>\n

And the results show. A survey revealed that businesses that used AI saw a <\/span>12-point rise<\/span><\/a> in their likelihood of profit growth over non-adopters.<\/span><\/p>\n

Nevertheless, <\/span>90 percent of <\/span>small business owners<\/span><\/a> reported facing obstacles in integrating AI into their operations. It\u2019s more complex than simply using ChatGPT and Midjourney to create marketing materials in seconds.<\/span><\/p>\n

In this article, we\u2019ll outline the key <\/span>AI adoption<\/span> challenges for <\/span>small businesses<\/span> and effective ways to overcome them.<\/span><\/p>\n

Adopting AI technologies: Challenges for SMBs<\/span><\/h2>\n

From accounting and <\/span>inventory management<\/span> to marketing and <\/span>customer support<\/span>, <\/span>AI tools<\/span> help improve various business functions through the power of <\/span>machine learning<\/span>. But despite realising the <\/span>benefits of AI adoption<\/span>, <\/span>small businesses<\/span> often lack the resources and <\/span>technical expertise<\/span> to <\/span>implement<\/span> AI projects<\/span>. They don\u2019t have adequate <\/span>budgets<\/span> to build proprietary <\/span>AI systems<\/span> or recruit <\/span>AI experts<\/span> to oversee adoption and use.<\/span><\/p>\n

Case in point\u201447 percent of SMB owners cited not knowing how to use <\/span>AI tools<\/span> as a significant deterrent to adoption. Other challenges they pointed out included non-compatibility with <\/span>existing systems<\/span> (31 percent) and security and <\/span>privacy concerns<\/span> (26 percent).<\/span><\/p>\n

Then, there\u2019s the issue of inaccurate results and bias. AI <\/span>algorithms<\/span> are limited by the <\/span>data sets<\/span> used to train <\/span>AI models<\/span>. They are prone to \u201challucinations\u201d and can generate incorrect or misleading information.<\/span><\/p>\n

For instance, the last thing you want is for an <\/span>AI-powered<\/span> chatbot<\/span> on your company website to provide false product details to customers. Worse still, it might make derogatory remarks and turn customers away.<\/span><\/p>\n

Plus, these systems can reinforce patterns of bias and discrimination present in the data used to train them. For instance, in 2018, <\/span>Amazon developed<\/span><\/a> an experimental AI recruiting tool trained on r\u00e9sum\u00e9s submitted to the company over the last 10 years. The software showed clear bias against women and even recommended unqualified candidates.<\/span><\/p>\n

It\u2019s also worth noting that many <\/span>small businesses<\/span> don\u2019t have the necessary infrastructure and processes in place for data collection and management for <\/span>AI initiatives<\/span>. This can lead to duplication, inconsistency, and other quality issues. That, in turn, can prevent <\/span>SMEs<\/span> from harnessing the full <\/span>benefits of AI solutions<\/span>.<\/span><\/p>\n

They also lack <\/span>continuous learning<\/span> programs <\/span>in-house<\/span> that can be used for <\/span>upskilling<\/span> existing employees. This can cause SMBs to lose their <\/span>competitiveness<\/span> against larger corporations.<\/span><\/p>\n

\"A<\/p>\n

Best practices for AI adoption in SMBs<\/span><\/h2>\n

Embracing AI for <\/span>small businesses<\/span> isn\u2019t as straightforward as using a few <\/span>AI-powered<\/span> tools. You need to adopt a <\/span>strategic approach<\/span> to ensure a seamless transition to these systems.\u00a0<\/span><\/p>\n

If you\u2019re looking to adopt <\/span>AI solutions<\/span> for a <\/span>small business<\/span>, keep the following best practices in mind:<\/span><\/p>\n

\"\"<\/p>\n

1. Audit your existing processes<\/span><\/h3>\n

Adoption of AI applications<\/span> for your <\/span>small businesses<\/span> doesn\u2019t mean you have to automate every function. Instead, the key to successfully <\/span>implementing<\/span> AI for a <\/span>small business<\/span> is understanding which processes stand to benefit from it.\u00a0<\/span><\/p>\n

Evaluate your current systems and processes to determine whether there\u2019s potential to improve their efficiency with <\/span>AI technologies<\/span>.\u00a0<\/span><\/p>\n

Keep an eye out for business functions and processes where employees spend most of their time performing routine tasks. Also, identify areas that could benefit from AI-driven analytics and <\/span>decision-making<\/span>. Lastly, weigh the efficiency gains against the cost, effort, and time required to <\/span>implement<\/span> new <\/span>AI systems<\/span>.<\/span><\/p>\n

2. Identify the right tools<\/span><\/h3>\n

Most SMBs lack the funds and resources to develop proprietary <\/span>AI solutions<\/span>. The good news is that you\u2019ll find a broad spectrum of ready-to-use <\/span>AI tools<\/span> for any task. Be it to improve customer support or reduce instances of customer account fraud, you can choose from various cloud-based AI <\/span>providers<\/span>. You can also get into <\/span>partnerships<\/span> with other companies if you intend to develop one.<\/span><\/p>\n

Other <\/span>AI tools<\/span> that can come in handy for <\/span>small businesses<\/span> include:<\/span><\/p>\n