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Wondering how AI is used for business? Let’s find out.
In 2024, artificial intelligence (AI) certainly isn’t slowing down anytime soon.
Gone are the days when AI was merely a buzzword.
AI is now a significant part of everyday life and a force for innovation that you should leverage to enhance and grow your small business.
If you’re hesitant to jump on the AI train or don’t know how to use AI for your business, this article is for you!
I will share the multiple ways that AI can be used for business, plus the benefits and drawbacks of using smart intelligence tools to optimize your business.
So, get ready to learn how to unlock new opportunities, automate business processes, enhance customer experiences, and much more with AI.
Read more: 11 Best AI Tools For Small Business.
How Is AI Used For Business?
At its core, AI refers to machine systems learning and performing complex tasks based on analytics and data.
And if used correctly, AI can completely transform your business for the better!
When we talk about businesses using AI, you might first think of automation. And don’t get me wrong—that’s part of it.
But automation only scratches the surface of AI’s capabilities!
Companies are increasingly embracing AI to enhance and refine their business processes in various areas, such as:
- Customer service (chatbots).
- Cyber security and fraud management (monitoring and accessing potential risks).
- Content creation (for websites, copy, images, videos).
- Sales and marketing (optimizing emails, segmentation, social media).
- Inventory management (automating tasks).
- HR (collecting records, automating payroll).
- Accounting and bookkeeping (projecting revenue and categorizing transactions).
- Product recommendations (analyzing customer behavior).
AI For Enhancing Customer Experience
Its no surprise that AI I is dramatically changing how businesses engage with their customers.
A survey by Forbes Advisor highlights this, confirming that the primary use of AI in businesses (current or planned) is customer service.
The survey confirms that 73% of businesses are using or planning to use AI to implement AI chatbots like Tidio for real-time customer service replies and messaging.
Plus, in the same study, it was revealed that 61% of companies are using AI to optimize their emails, and 55% are driving AI tools like Klaviyo for product recommendations.
AI-driven phone handling is also being used widely in businesses, with 36% of surveyed businesses using or planning to use this service within their teams.
Regarding long-form content creation, a myriad of tools are available, such as Copy.ai and Jaspar.ai, to help with website copy and targeted advertising.
As AI tools are woven more deeply into various customer engagement channels, artificial technology is streamlining and personalizing the customer journey like never before.
What Are The Benefits Of Using AI In Business?
Using AI in your work has many benefits that can supercharge your business to success.
Here are some of the key advantages:
- Improved Decision-Making: AI has the ability to analyze large amounts of data quickly and accurately, providing insights that support better strategic decisions. As a result, AI can identify patterns and trends we (humans) tend to overlook.
- Enhanced Customer Experience: AI-powered chatbots and product recommendations ensure customers receive instant service. This ultimately improves customer satisfaction and deeply helps you understand your customers’ needs and behaviors.
- Increased Efficiency and Productivity: Automating tedious, routine tasks with AI allows you and your team more time to focus on more complex and innovative work. Ultimately boosting productivity and efficiency within your business.
- Cost Reduction: AI tools may seem costly initially. But trust me, AI can significantly reduce the overal operational costs over time by streamlining processes and automating tasks (previously requiring manual input).
- More Efficient Risk Management: AI algorithms can easily predict and analyze risks by examining historical data and identifying potential issues before they become problematic. This can save resources (not to mention your reputation!)
- Increased Security: If you work online, you’ll know that cybersecurity is a major business concern! AI can monitor and analyze unusual behavior in real-time and implement automated responses to mitigate threats so you don’t have to.
Read more: How To Use Gemini AI.
What Are The Drawbacks Of Using AI In Business?
AI is a powerful tool that can absolutely transform the way your business runs. However, it comes with its own set of drawbacks you should consider before diving in.
Some of these include:
- High Costs: AI tools can be expensive! If you’re using an AI system for customer service, content creation, security, accounting, etc., the costs can quickly add up. Plus, you must consider the costs of integrating AI into your existing systems and processes.
- Lack Of Human Touch: While AI excels at analyzing data and trends, it simply can’t replace the creativity or emotion a human possesses, which may affect your business in areas like content creation or customer service.
- Dependence on Data: AI technology heavily relies on inputted data for learning and making decisions. Therefore, poor quality (or biased data) can lead to flawed outputs.
- Higher Security Risk: AI systems may be more susceptible to hackers or cyberattacks, potentially compromising sensitive company data.
- Ethical Issues: There are ethical considerations around privacy and accountability with AI. Therefore, teams must ensure AI is used ethically and responsibly within their business.
Read more: Shopify AI Review.
Can You Use AI To Start a Business?
Yes! Entrepreneurs can certainly use AI technology to accelerate their business and bring it to fruition.
In fact, there are many online AI tools that allow you to set up, launch, and manage your business effortlessly.
AI writing tools like ChatGPT and Copy.ai can help you generate business names and ideas, write business plans, engage in keyword research, and more.
Plus, AI-generated website builders such as Hostinger AI website builder, Wix, 10Web, and Durable AI can assist you with setting up your business online.
Canva and Invideo’s AI tools are awesome for image and video marketing material and campaigns.
And accounting tools like QuickBooks and Xero also have dedicated AI tools within their services.
Stews Final Thoughts
That wraps us this article explaining how AI is used for business!
As you can see, AI can be leveraged within your business in more ways than one.
AI can help streamline operations, enhance customer experiences, save time, reduce risks, and so much more.
However, while its clear that adopting AI into your business isn’t just an advantage but a necessity to get ahead, it should be used with caution.
Its crazy to think that AI has only been around for a few years! It will be interesting to see where AI goes in the near future.
Watch this space…
