AI for MSMEs: Bridging the gap between technology and business goals is important
Sep 18, 2024
Synopsis
Businesses must assess their specific needs and available resources before implementing AI, and leaders should take the initiative to take the team together in this process.
The transformative power of artificial intelligence (AI) lies in its ability to automate tasks, analyse vast amounts of data, and make predictions and recommendations with unprecedented accuracy. For MSMEs, this can significantly enhance efficiency and decision-making across various operations.
According to a survey by the Ministry of MSMEs, 45% of MSMEs have adopted some form of AI in their operations, reflecting a growing interest in how AI can address their unique challenges. The MSME sector faces challenges in adopting new technologies due to limited financial and human resources.
Experts say that MSMEs can combine AI’s computational power with human intelligence to improve the business. The right approach and balance can help small businesses succeed in the digital era.
Payal Nambiar, Founder & Director of B Square, says that successfully implementing AI in the MSME sector requires a delicate balance. “Businesses must assess their specific needs, available resources and the long-term impact on their operations. A cautious, well-planned approach can help mitigate risks and unlock the true potential of AI-driven solutions. The key lies in balancing the transformative power of AI with maintaining the human touch, essential for true innovation and resilience.”
Harnessing predictive tools to future-proof growth
Experts say that the future of business led by predictive tools is unfolding before our eyes, and tools of predictability and digital automation have emerged as the keys to unlocking unprecedented growth and adaptability. Predictive analytics and digital automation are especially powerful when navigating the ever-evolving business landscape. For MSMEs, leveraging these cutting-edge tools can be a game changer in anticipating market shifts and building resilience.
“By embracing digital automation and integrating comprehensive business process management solutions, such as ERP systems, along with resilience strategies, MSMEs can future-proof their operations, ensuring they are well-equipped to navigate the ever-changing market landscape. This holistic approach empowers businesses to anticipate challenges, seize opportunities and maintain a competitive edge — a true testament to the transformative power of technology in the MSME sector,” says Nambiar.
Aligning AI with business goals
AI is more than just a technological upgrade today; it’s a strategic necessity, experts point out. This means going beyond just implementing AI for specific tasks and truly understanding how it can drive business outcomes, such as improving customer experience, streamlining supply chains, optimising decision-making and predicting market trends.
Bhavesh Goswami, Founder and CEO of CloudThat, says that for MSMEs to thrive in the age of Industry 4.0, AI adoption cannot be an afterthought. “This transformation isn’t just about implementing AI tools, it’s about aligning AI solutions with strategic business objectives. As seen in recent cases, focusing solely on the technical aspects can lead to missed opportunities or even unintended consequences,” says Goswami.
But it requires a shift in mindset as the leadership has to embrace technology not as a disruption but as a catalyst for transformation. “To grow, an MSME must have adaptability and innovation in its DNA, and generative AI, in particular, provides the path forward. While resistance to new technology is natural, AI adoption within the MSME landscape is neither a top-down nor a bottom-up endeavour — it’s a joint effort. Leaders must understand the ‘why,’ and the operational team must execute the ‘how’ to ensure AI solutions are practical and impactful. This requires a strategic approach that goes beyond technical implementation and focuses on how AI can drive growth and transformation,” says Goswami.
Across the country, several new-age firms have already struck a balance between innovation and practicality. One such example is mFilterIt, led by Amit Relan, whose AI-driven solutions are turning out to be quite effective in finding ways for brands to protect their digital reputation. Relan says jumping on the AI bandwagon is beneficial for monitoring affiliate and influencer marketing campaigns, identifying safe ad placements, and ensuring compliance with advertising guidelines. Automating tasks such as ad traffic validation, lead quality assessment, and performance monitoring can enhance ROI and elevate brand reputation. “When integrated into operations, digital automation and resilience techniques can be a game changer. We use AI-ML-driven technology along with open-source intelligence (OSINT) to protect brand reputation across the digital ecosystem, ensuring contextual relevance in ad placements and preventing brand infringements,” adds the Co-Founder and CEO at the end-to-end ad fraud detection and prevention firm.
[The Economic Times]
