Did you know that one in five small businesses fail in the first year? According to Fundera, 20% of startups fail in the first year. About 30% end in their second year, while only half (50) last for about five years.
As a startup, how do you ensure your business will survive and thrive in the long run? Develop the best products and deliver excellent services to meet the consumers’ needs. But all these can be supported by one of the most crucial factors in business: Technology!
Enter artificial intelligence (AI), the simulation of human intelligence into machines. Whether you’ve just launched your tech startup, set up a brick-and-mortar store, or run an e-commerce business, AI can aid in various aspects of your small business.
Don’t worry; This page tackles the use cases of AI technology for business operations. Read on to learn how to leverage these tools or platforms to boost your startup, even if you’re not a tech expert!
The Use of AI for Business Operations
To begin, what is artificial intelligence?
AI integrates human intelligence into computer systems and digital tools, enabling them to make decisions and perform tasks like human beings. You’ve probably generated content using ChatGPT, conversed with AI-powered chatbots, or interacted with voice assistants like Alexa and Siri.
AI encompasses several subsets of technology. However, according to Hostinger, generative AI (genAI) is the most utilized by over half of the respondents (51%), followed by natural language processing (42%) and machine learning (42%).
For the uninitiated, below are other AI tools and technologies to invest in:
AI technology is a game-changer in various business operations, no matter the industry. It automates tasks, offers data-driven insights, and even communicates with multiple stakeholders. However, there is more to this than meets the eye!
AI tools and platforms can assist you in various business functions. They can even do the job for you. That said, here are six core areas where it can lend a helping hand:
- Customer service or support: AI can assist your clients or customers round the clock. See those AI-powered chatbots interacting with users on business websites? They offer 24/7 help and support by answering FAQs, creating tickets, and escalating complex issues to real agents as needed.
- Sales and marketing: For marketing, AI can generate content pieces, send automated replies for email marketing, or create compelling captions for social media. AI tech is also helpful for sales processes, such as lead prospecting, email outreach, and sales negotiations.
- HR and recruitment: AI can help your recruiters and human resources (HR) personnel in various processes. Think of AI tools for screening job applications, AI-assisted assessments for guiding applicants, or conversational AI for virtual interviews. Also, consider AI platforms used for onboarding, training, and performance management.
- Finance and accounting: AI automates various financial operations, including bookkeeping and accounting, payroll, and invoicing. Its ML features can help you crunch the numbers, analyze the data, and even make a forecast. This tech can go as far as recommending business loan options and debt relief programs needed by entrepreneurs and startups.
- Admin tasks and operations: For administrative tasks, AI can help assistants with calendar scheduling, email management, and other routine, repetitive tasks. As far as operations are concerned, AI automates supply chain, inventory, and project management processes with zero to minimal human intervention.
Discover why it’s worth investing in AI for your startup below.
Why It’s Worth It
Launching your startup is no easy feat. You have to choose a business by following your passion while measuring the risk involved. However, the real challenge is how to keep your small business up and running. That’s where technology can help, and on top of that is AI!
According to Salesforce, 78% believe AI will be a game-changer for their company. Among those already using it, 87% say it helps scale operations and 86% report better profit margins.
Specifically, SMB leaders who are not using AI might be overlooking its widespread adoption. About 80% of AI users say it’s common among their peers, but only a third of non-users share the same opinion.
But is AI worth the investment? Let’s break it down. Here are five standout benefits of integrating AI into your startup:
- Increased efficiency and productivity: It’s no secret how AI and machine learning can boost your efficiency. It automates repetitive tasks and reduces manual work, thus accelerating the entire process. In short, AI lets you work smarter, not harder!
- Faster decision-making: ML is notable for collecting datasets and making decisions based on patterns and trends. With data-driven insights at your fingertips, you can make quicker, more informed decisions. There’s no guesswork involved here!
- Significant cost savings: Sure, AI investment can be costly at the outset. However, it will pay off in the long run by helping you save on labor and operating costs. With the efficiency, productivity, and customer satisfaction (CSAT) it brings to the table, expect a significant boost in profits!
- Enhanced customer experience: AI helps you deliver what your customers expect without burning out your team. Think of quick responses, personalized messages, and consistent service. Let’s cut to the chase. Here are several ways AI could help improve the CX:
- Scalable business growth: Every entrepreneur aspires for their startup to grow big someday. However, this process involves taking the five stages of growth: existence, survival, takeoff, success, and resource maturity. AI tech can definitely help by optimizing various aspects of your operations every step of the way!
Learn how to use AI for your startup as a non-techie in the next section.
For Non-Techies: How To Leverage AI in 5 Simple Steps
AI investment is already imperative in today’s business landscape. Nearly half of companies are investing in AI technology by allocating between 5% and 20% of their tech budget to AI initiatives. They believe that the benefits they offer are worth the investment long-term.
AI investment doesn’t discriminate. It practically applies to businesses of all sizes, including startups. With user-friendly tools and platforms, you can automate tasks, boost productivity, and grow faster without writing a single line of code.
That said, here’s how your startup can get started with AI, even if you’re all non-techie:
1. Spot key areas to automate
When launching your startup, you establish basic functions to keep your business fully operational. What better way to begin than to hit low-hanging fruit? Ask yourself: What daily tasks eat up your time? What repetitive processes could be handled automatically?
For example:
- Customer support: Employ AI-powered chatbots to handle FAQs, chat replies, and support tickets on your e-commerce website. They can make up for your customer service team in the meantime, as your budget doesn’t currently allow you to hire agents.
- Sales and marketing: For marketing, automate content generation, social media posts, and email replies from the get-go. Meanwhile, leverage AI for lead generation and email outreach to get started. Nearly 75% of marketers and 43% of salespeople are already using AI in the workplace.
- HR/Admin: To optimize HR, invest in AI tools to screen job applications and create materials for onboarding and training. You can also automate HR tasks, such as employee data management. The same applies to administrative tasks, such as data entry and file management.
2. Pick the right AI tools to use
It’s crucial to choose the right business partner for your startup. The same goes for selecting a vendor or service provider for your AI investment. More importantly, you need to select the AI tools or platforms that are best suited for your business niche, type, size, and needs.
The best part? Many of these offer free plans and low-cost starter tiers. So, while at it, take advantage of these resources at your disposal to streamline your startup operations.
Now that you know what to automate, it’s time to pick the AI tools or platforms to help your startup. That said, here are some of the most popular (and beginner-friendly) options:
- ChatGPT / Claude / Notion AI: These genAI tools are best for writing content, generating ideas, and even summarizing meetings.
Image source: ChatGPT
- Zapier / Make: These platforms let you connect your favorite apps to automate actions without writing a single line of code.
- Tidio / Intercom / Drift: These AI technologies allow you to employ chatbots that can handle your basic customer support or service.
- Grammarly / Jasper / Copy.ai: These tools help improve your written content for emails, blogs, and social posts
- Pictory / Descript: These tools make use of AI to edit videos, create captions, or repurpose content
3. Integrate AI into your workflows
Many businesses are still exploring how to use AI tech effectively by testing various tools and approaches. Over 55% of business leaders report being in the early or mid stages of AI adoption. Only 20% have fully integrated AI across multiple areas, while 24% haven’t adopted it at all.
As a startup entrepreneur, don’t let integration intimidate you. It’s actually simpler than it sounds. That said, here’s how to get started:
- Begin with one task. For example, you don’t need to fully automate your whole email marketing process. Start by only automating follow-up emails after someone fills out your website form.
- Use no-code platforms. With drag-and-drop tools and built-in templates, integration becomes simple and easy. For example, you can use Zapier to link tools, such as Google Sheets, Gmail, Slack, and more.
- Stick with tools that plug into what you already use. Most modern apps play well together. Choose those plugins that are compatible with your existing systems.
- Leverage templates: Many platforms offer built-in workflows you can activate with just a few clicks. Even website builders, such as WordPress, have templates that come in handy for you.
- Automate what’s predictable. Identify routine and repetitive tasks you can easily and quickly automate. Think of scheduling, reminders, data transfers, email replies, and more.
- Train your team (or yourself!). With tutorials and help guides, many tools are easier to use than you think. For example, use AI-powered Loom to record the steps for carrying out tasks. Then, send it to your team for guidance and reference.
4. Track, gauge, and improve your performance
Launching your startup requires a trial-and-error method: Try, make mistakes, and correct yourself. However, it demands a strategic approach and a fast learning curve. That way, you won’t commit the grave mistakes that entrepreneurs make in their first year.
This notion essentially applies to your AI investment and leverage. Once your tools are up and running, you want to ensure they’re working the way you hope they would. This requires three crucial steps to take:
- Monitor performance: Are tasks getting done faster? Are there fewer errors? Do they make the lives of your workers and customers much easier and better? Use AI tools to track your progress yourself!
- Measure against key metrics: Start by setting key performance indicators (KPIs) in place. Suppose you’ve automated your regular marketing blog by integrating genAI tools. In that case, measure KPIs, such as organic traffic, website visits, engagement rates, lead generation, and even conversion rates.
- Tweak and optimize: This step is the most critical part right after monitoring and measuring your performance. With what you’ve discovered, adjust workflows when necessary, switch AI tools if needed, and test AI alternatives that could work better for your startup. Ultimately, AI tech should evolve with your business!
5. Start small, then scale up
It’s no secret: AI is here to stay and grow. Its global market could grow from $279.22 billion in 2024 to $1.81 trillion by 2030 at a 35.9% compound annual growth rate (CAGR).
Ongoing research and innovation from tech giants are driving the advancement of technologies into vertical industries, such as automotive, healthcare, retail, finance, and manufacturing.
As AI evolves, so does your startup. However, this is where many founders stumble. They try to automate everything at once and get overwhelmed.
If you want to transform from a non-profitable startup to a major player in your industry, starting small is key to business growth. Then, you can gradually scale your small business up and down. Here’s how:
- Begin with one high-impact area. Start with one high-impact area, such as email automation, chat support, and inventory management. Take it slowly but surely!
- Test one AI tool at a time. You can try some free tools readily available in the market, then invest in their premium offers. Get to know these tools and see how they perform!
- Track results and get feedback. As mentioned, monitor your results and note what works (and what doesn’t). From there, you can make the necessary changes, update your AI tools, or replace them altogether.
- Document almost everything. Document workflows with AI integration. This is especially important if you’ll train others to use the tools later.
- Expand into other areas when ready. When you’re ready, expand to different functions. For example, start automating repetitive tasks such as data entry, bookkeeping, and inventory management. Later, you can utilize AI tools for data analysis, future forecasting, and business reporting.
- Upgrade your tools as needed. Update tools only when you’ve outgrown free or basic plans. As mentioned, AI technology is rapidly growing and evolving. You must stay up-to-date with AI trends to grow and succeed!
- Keep learning and iterating. Stay curious as new AI tools pop up regularly. What works today might be twice as powerful tomorrow. Learn and grow!
Final Words
AI is a potent tech for businesses of all sizes. This technology isn’t only for big companies and top brands but also for small businesses and emerging startups. As a non-tech startup entrepreneur, you can harness its power to scale and grow your business!
To begin, consider the use cases of AI technology for your startup, whether for customer support and service, sales and marketing, or product and operations. More importantly, follow the crucial steps above for leveraging AI technology. Remember, choosing the right tools and integrating them with your workflows can make a difference in your business.
Ultimately, AI tech has the power to boost your efficiency, decision-making, cost savings, customer experience, and business scalability! For more insights and resources, sign up now to subscribe to The Start, our weekly newsletter!
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