How Midsized Companies Can Make the Most of AI

Artificial Intelligence (AI) has already begun to play a significant role in the operations of large enterprises, but many midsized companies are still unsure of how they can make use of this powerful technology. That's because they lack structured data, knowledge, and human resources to navigate the new technology.

According to thisreport, only 13.5% of medium-sized enterprises and 8.6% of small enterprises use AI-powered tools. The figures are modest - to say the least - but it doesn't mean you ought to stay away from AI.

In this article, we will explain why and how midsized businesses can take advantage of AI to improve efficiency and competitiveness.

How to Use AI in Your Midsized Enterprise

You don't need to run an international corporation to put AI into practice. On the contrary, there are a number of ways AI can benefit midsized businesses without breaking the bank. Here are only a few interesting options:

• Improve inventory management

One of the most important aspects of doing business is managing inventory. A recent study revealed that inventory in retail business is accurate only 63% of the time. This means that more than one-third of the time businesses are either selling products they don't have or are not selling products they do have.

AI can help with inventory management by analyzing sales data and trends to make better predictions about future demand. This will allow you to allocate resources more efficiently and avoid stock-outs or overstocking.

At the same time, advanced tools can help you optimize stock by predicting customer demand and seasonal trends.

• Optimize marketing campaigns

AI can help you target specific demographics with laser precision, increasing the effectiveness of your marketing campaigns while reducing costs. It's not just our opinion, but rather a well-documented fact: AI enables marketers to increase sales (52%), improve customer retention (51%), and succeed at new product launches (49%).

• Empower customer support

Customer support has always been perceived as a human thing, but new technologies are taking it over these days. Now it's easy to set up an AI-powered system to handle the majority of customer interactions.

Chatbots are a great way to use AI for customer support, as they can mimic human conversation and answer customer questions in real-time. This allows you to provide a better customer experience while gathering valuable data about your clients' preferences and needs.

• Use AI for data analytics

All businesses - regardless of size - are sitting on a goldmine of data. The challenge is to extract value from that data and turn it into useful insights. This is where AI comes in handy as it can help you make sense of all the data you have and identify patterns and trends that would otherwise be invisible.

How to Choose the Best AI Tool for Your Business

The benefits of AI tools are countless, but how do you choose the best platform for your small or midsized organization? Here are a few tips to simplify the decision-making process:

1. Make a deployment plan

Before you even start looking for AI tools, you need to make a deployment plan. This means outlining your business goals and the specific tasks you want the AI tool to perform. This will help you focus your search and avoid choosing a platform that doesn't fit your needs.

However, remember that there is no need to reinvent the wheel when it comes to AI.

Chances are someone has already created a tool that can solve your specific problem. Do your research and find the best tools that fit your needs. Besides, it's always a good idea to get help from experts when implementing AI in your company.

2. Set tangible goals

When it comes to AI, it's important to set tangible goals. Simply put, you need to know what you want to achieve with AI and how you're going to measure success. This will help you track progress and ensure that the benefits of AI are actually translating into tangible results for your business.

3. Prepare your team for it

AI is not a one-man show. It requires a group of employees to properly implement and use it across the entire organization. This means you need to make sure your team is ready for AI and has the necessary skills to take advantage of its benefits.

Training and education are essential when it comes to using AI effectively. Make sure your team is up-to-date on the latest tools and technologies so they can take advantage of all the benefits AI has to offer.

4. Use free tools if available

Not all AI tools are expensive, and many platforms offer free trials. If your business is just starting out or you don't have a lot of money to spare, it's a good idea to explore the free options first.

There are so many great free tools out there that can help you get started with AI. This is especially convenient for small and midsized companies that want to dip their toes in the AI waters without making a big investment.

5. Focus on the right features

The key in this process is to find the right AI tools for your specific needs and to determine how you will use them. Don't try to do everything at once but rather start with one or two applications that can help you achieve specific goals.

One of the biggest mistakes businesses make is buying a tool without testing it first. It's always a good idea to ask for a demo or trial before making a purchase decision. This will give you a chance to see how the tool works in practice and whether it meets your expectations.

6. Measure performance and ROI

In order to justify the investment in AI, you need to be able to measure performance and ROI.

This means setting goals and benchmarks before implementation and tracking progress over time. Measuring performance can be tricky, but it's essential to ensure that the benefits of AI are actually translating into tangible results for your business.

ROI can be measured in a number of ways, such as increased sales, reduced costs, improved efficiency, or increased customer satisfaction. Whatever metric you choose, make sure you track it regularly to ensure that the benefits of AI are worth the investment.

Conclusion

AI has already been used to great effect in a number of industries, including retail, banking, and healthcare. The opportunities are endless, so don't be afraid to experiment with this powerful technology. AI can help you improve inventory management, marketing campaigns, customer support, data analytics, and many more.

If you're not using it yet, it's time to start.