For more than a year, governments, industries, and society in general have been buzzing about Artificial Intelligence (AI). The persistence and volume of AI hype have positioned it as the innovation of the century.
The Australian Government’s Department of Industry, Science, and Resources has acknowledged that “AI is part of our daily lives and will transform every sector of the economy and society.”
At MJJ Accounting and Business Solutions, we’ve received numerous newsletters and emails stating that, to maintain a successful business in the future, AI will be inevitable.
To help unpack this for our fellow small business owners, this article will step through what AI really is, how it can help or hinder small businesses, and some simple ways business owners can take the plunge into implementing AI.
What Is AI?
The Australian Signals Directorate, one of the Australian Government agencies responsible for national cybersecurity, defines AI as the theory and development of computer systems that can perform tasks normally requiring human intelligence, such as visual perception, speech recognition, and decision-making.
While this definition is clear, it focuses more on what AI does rather than what AI is. To better understand AI, it’s helpful to look at its emergence, which spans far beyond the last 2 or 3 years.
International Business Machines (IBM) describes AI as “…a series of nested or derivative concepts that have emerged over more than 70 years.” This idea is clearly demonstrated in the diagram below, showing the iterative development of AI from the 1950s to today.
(Source: IBM 2024, What is artificial intelligence (AI)?)
As you might have guessed, the recent hype around AI stems from the relatively recent developments of Deep Learning and Generative AI.
Deep Learning is a subset of machine learning that uses an artificial neural network to analyse complex data and identify patterns. These patterns can then be used to inform decision-making. The diagram below illustrates how this works in practice. The dark blue nodes represent the information input, while the light blue nodes represent the output. What we commonly refer to as Artificial Intelligence or AI is the green nodes between input and output.
(Source: IBM 2024, What is artificial intelligence (AI)?)
These green nodes are where the magic of AI take place. Here, AI conducts unsupervised learning, using algorithms to analyse the inputted data—while also drawing on other information in its database—to discover hidden patterns, all without human intervention. This analysis then informs the AI’s output.
While Deep Learning is fundamentally the most important development for AI, the true catalyst for the current AI hype has been the development of Generative AI. As the name suggests, Generative AI (often branded as tools like ChatGPT) refers to deep learning models that can create complex, original content—such as long-form text, high-quality images, realistic video, or audio—in response to a user’s prompts or requests. This has proven to be the most important development for increasing the accessibility and understandability of AI’s outputs, resulting in its integration into mainstream society.
How AI Can Help or Hinder Small Business
Now that we’ve established what AI is, the question becomes: “What are the best ways to implement AI into my business?”
The answer is relatively simple, though it will vary based on each business’s needs. The general idea is that AI can be highly effective anywhere routine or systematic computation is required. While this will look different for each business, there are a few standout areas where AI can be particularly useful:
- Email Drafting: Responding to emails can be a time-consuming task that eats up hours of your day. AI can help by drafting detailed responses with just a few words of input. You can simply review, tweak, and send the response. Microsoft’s Copilot, which integrates fully with Outlook and your Microsoft 365 subscription, is a great option here. For more details, check the Microsoft website.
- Minute Taking and Document Processing: AI can also save time in drafting meeting minutes or creating documents for both internal and external use. By providing simple prompts, AI can generate long documents that include existing documents, photos, or website links. The true power of AI lies in its fast and iterative nature. Users can request additions, deletions, or changes with a few sentences, and the AI tool can make the amendments in real-time. ChatGPT is a good option document creation but Copilots integration with Teams makes it a standout for minute taking.
- Enhancing Decision-Making Processes: AI can also be a powerful tool for improving decision-making in small businesses. By using AI-powered analytics tools, business owners can make more informed decisions regarding marketing strategies, inventory management, customer preferences, and financial forecasting. AI can provide insights based on historical data, helping you predict future outcomes and make proactive adjustments, rather than simply reacting to challenges as they arise. This data-driven approach ensures that your decisions are grounded in evidence, leading to more efficient and effective business strategies.
Final Thoughts on AI in business
Artificial Intelligence is no longer a distant concept reserved for tech giants—it’s a practical tool that small businesses can leverage to streamline operations, save time, and improve efficiency. Whether it’s automating email responses, drafting documents, or enhancing decision-making processes, the potential applications of AI are vast and growing. By embracing AI thoughtfully and strategically, small business owners can stay ahead of the curve and drive growth in an increasingly competitive market.
However, it is important not to confuse the ability to generate speech or text with intelligence. Just as people can generate information that has no place in your business, AI too must be vetted to ensure its outputs match the intended use. As with any new technology, it’s important to approach AI with a clear understanding of how it fits into your business model. Take the time to experiment with simple tools, explore what works best for your needs, and adjust as necessary. The future of business is being shaped by AI, and those who embrace it will be better positioned for success in an ever-evolving digital landscape.
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