AI for business can help SME growth — experts

ADOPTING a responsible learning mindset around the business uses of artificial intelligence (AI) can multiply the ways small- and medium-sized enterprises (SMEs) drive revenues and innovate for future value, according to experts.

“As a machine, it learns from us, but as humans, we learn from it,” Nikki L. Del Gallego, data and insights lead at Google Philippines, told BusinessWorld on the sidelines of the company’s AIMagine Marketing forum with the Internet and Mobile Marketing Association of the Philippines (IMMAP) last week.

“When you have more understanding of what it can do, then you are more open to what you can use it for and how it will benefit the business,” she added.

“The key for small business owners is to embrace learning opportunities,” said Mervin Teo V. Wenke, communications and public affairs head at Google Philippines. “Whether AI or not, any form of technology can bring value to the business.”

“Have that mindset. As a small business owner, you demonstrate that leadership by example, so your employees and staff will follow.”

The global AI market is expected to top $407 billion by 2027, with a compound annual growth rate of 36.2% within the 2022-2027 period, according to analytics firm MarketsandMarkets. The large total addressable AI market signals an opportunity for growth and profitability.

In the IBM report titled “Augmented Work for an Automated, AI-Driven World,” the availability of external skills (58%) and the development of new skills for existing talent (48%) were recognized as the most pressing concerns among Filipino executives.

“AI is about people and skills, not just technology,” the study said. “Competitive advantage comes from scaling employee expertise and transforming how work is done.”

“Organizations have to make human talent central to their AI strategy,” it added.

Adopting AI technology poses benefits for businesses of all scales in terms of streamlining processes and allocating efforts to more important matters than those that can be automated.

“[AI] can free a lot of time for staff, employees, and small business owners to allocate their resources to more strategic activities, rather than waste their time and energy in admin tasks,” Mr. Wenke said.

“That saved time means value and revenue, and it would really help the company focus on innovation, future value, expansion, customer experience, and many others.”

AI can also enable enterprises to explore the boundaries of creative development in marketing and branding through democratizing creative assets for campaigns, according to Raymund Sison, partner and chief creative officer at Propel Manila.

“Like AI, technology allows us to explore uncharted territories,” Mr. Sison said. “The more we democratize creative-making, [the more] it’s going to bring the bar up for creativity.”

Mr. Sison cited the “NotJustACadburyAd” campaign of global chocolate brand Cadbury, where small business owners in India were given the opportunity to create their own specialized advertisement featuring Bollywood actor Shah Rukh Khan through AI.

However, AI applications tread on ethical issues such as copyright and intellectual property, causing resistance to such a rapidly growing technology.

“It’s incumbent upon us to be transparent with our customers to lower their resistance with AI,” said Denise Haak, IMMAP president. “Tell them that we are using AI, what kind of AI tools, how we use it, and how their data and information are being processed by AI platforms.”

“Put together a multi-sector committee or task force to lead governance in AI,” said Cynthia Dayco, IMMAP trustee and head of content at Metrobank. “Figure out the best course of action and guidelines for the organization.”

“Talk to your employees and partners. Figure out how to monitor the use of AI… Constantly update guidelines for transparency,” she added.

Transparency is deemed the key to navigating the AI landscape among businesses, while regulation catches on and follows suit soon, according to Ms. Haak.

“Because there is no strict regulation, please exercise your best judgment,” Ms. Haak said on business owners adopting AI. “Ethical and moral responsibilities are imperatives.”

“Do what is right. Since you are also consumers: if this is something you would want from the brands that use AI, please do it for yours.” — Miguel Hanz L. Antivola