Goldman Sachs: How Can SMEs Unlock AI's Potential?
As AI has emerged as a powerful force driving innovation and efficiency across multiple sectors, large corporations have been quick to adopt AI technologies.
But what about small and medium-sized enterprises (SME’s)?
From streamlining processes and improving efficiency to providing valuable insights into customer behaviour, AI offers a wealth of opportunities for SMEs to enhance their processes and competitiveness across worldwide businesses.
However, the adoption of AI technologies by SMEs is not without its challenges.
To find out more, we gained insight from Charlotte Keenan, Head of Corporate Engagement International at Goldman Sachs, about how AI can be adopted and its potential on Small business growth.
The AI revolution in SMEs
The potential for AI to transform small businesses is significant and many are already reaping the benefits.
Charlotte explains: "AI represents both a challenge and a key growth opportunity for the UK's 5.5 million SMEs. Already, we're seeing AI have a lasting impact on the way they operate, with nearly half of SMEs in our program currently leveraging AI to optimise business performance.
“A survey of ours released earlier this year also found that 80% are either already using specific Generative AI tools or plan to do so in the next year."
This high rate of adoption brings to light technology's ability to streamline operations and provide valuable insights is particularly crucial for
SMEs, which often operate with limited resources and tight margins.
Maximising efficiency and productivity
One of the key benefits of AI for small businesses lies in its ability to enhance operational efficiency and productivity.
Charlotte elaborates on these advantages: "At our roundtable, many of the small businesses present said the biggest potential benefits of AI are likely to be increased productivity and efficiency.
“AI can streamline processes, improve inventory control and help optimise rota scheduling, helping to save costs and improve resource management."
By automating routine tasks and optimising operations, AI can free up valuable time and resources for SMEs to focus on core business activities and strategic growth initiatives.
This efficiency boost can be a game-changer for small businesses, allowing them to compete more effectively with larger corporations.
How to overcome AI adoption hurdles
Despite the clear benefits, many small businesses face significant challenges in adopting AI technologies.
One of the primary obstacles is the knowledge gap surrounding AI and its practical applications.
Charlotte identifies this issue: "AI is still a new technology and while small businesses may be aware of high profile tools such as ChatGPT, many are unfamiliar with how to apply these tools to their day-to-day operations.
“In our survey released earlier this year, for example, a lack of understanding of AI was identified as the main challenge for small business owners."
To address this knowledge gap, Charlotte suggests a collaborative approach:
"To make real gains, however, practical training will be essential and this is a major barrier for many small businesses; especially when it can be difficult to identify exactly what training is needed.
“One way to address this is for SMEs to work together; sharing their knowledge, experience and use cases for new technologies as well as the training that is most useful."
This collaborative strategy can help small businesses collectively navigate the complexities of AI adoption and implementation, learning from each other's experiences and best practices.
Support for AI integration
For small businesses to fully leverage the potential of AI, support from both the public and private sectors is crucial.
Financial incentives and government initiatives can play a significant role in making AI technologies more accessible to SMEs.
Charlotte emphasises the importance of such support: "Government grants and incentives can play a crucial role, helping provide the necessary funding to make AI technologies accessible to SMEs as they look to compete both domestically and internationally."
She further notes the strong demand for such initiatives among small businesses: "In our survey, nearly 80% of small businesses believe there should be new financial incentives for small businesses to innovate new AI technology products.
“Meanwhile, three quarters want to see new financial incentives for small businesses to adopt existing AI technology."
Beyond financial assistance, Charlotte highlights the potential of collaborative efforts: "Public-private partnerships present opportunities, fostering collaborations between the government, large corporations and SMEs.
“These partnerships can facilitate the sharing of resources, knowledge, and best practices, creating a supportive environment for AI adoption."
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