Everybody is jumping on the artificial intelligence bandwagon, but there are risks as well as rewards to using any new technology and AI is no different.

According to the U.S. Small Business Administration, there are a lot of ways AI can improve efficiency for small businesses, but there are also some associated risks.

On the plus side of the ledger, AI can help business owners save time. It can also save on costs and help businesses stay competitive in times of mounting inflation. If a job market is experiencing labor shortages, AI can help compensate for skilled labor.  

AI can also help businesses by solving problems before they happen by tracking traffic and flight delays to avoid delivery and travel issues. Monitoring weather conditions can help businesses prepare for or avoid disaster damage and rate optimizers can help lessen shipping costs.

AI can also help secure important business data by automating security functions. The ability to quickly react to an attack and apply a security patch can make all the difference to your small business

AI can also help analyze small-business data and pick out common themes as well as use client data to make better strategic decisions. Data-inclusive tools can also assist small-business owners to compare their business to similar businesses and find gaps to address or advantages to exploit to give businesses an extra boost. 

For small businesses looking to engage with existing and potential customers online, AI can help when editing photos or videos or use original marketing content to develop e-commerce product descriptions or generate and schedule social media posts across multiple platforms or develop engaging content based on trending hashtags and topics.

AI can even help with customer service with a website chatbot that can answer common questions or complete an order.

But there are also risks, according to the SBA.

Using AI can mean a business is assuming a certain amount of risk. If it is part of a purchased product, those creators are responsible for their product’s use of AI.

Businesses using free AI tools or software should have another person review all AI products. This will help make sure they are being used ethically, securely.

Small-business owners using AI should also monitor and review content to make sure it reflects the business’s culture and principles. While there are currently no federal or state laws that require businesses to disclose the use of AI, it is becoming an expected best practice.

SOURCE: U.S. Small Business Administration