AI in SMEs
Market Developments, Challenges, Benefits and Solutions
Generative AI for SMEs: Unleashing Efficiency, Competitiveness and Innovation
Generative AI holds immense potential for small and medium-sized enterprises (SMEs), enhancing efficiency, competitiveness, and innovation. By strategically leveraging AI, SMEs can optimize processes, create personalized customer experiences, and develop new business models. However, critical factors like data privacy, quality assurance, and ethics must also be addressed. With the right strategy and implementation, digital assistants powered by generative AI can become a decisive competitive advantage.
What ist Generative AI?
Generative AI, often referred to as Gen AI, is an advanced form of artificial intelligence capable of independently generating content, such as text, images, videos, audio, or software code. It predominantly utilizes Large Language Models (LLMs) trained to understand user inputs or questions in natural language and provide relevant content as output.
Generative AI: Market Potential
Experts at KPMG estimate the global market size for generative AI will reach €33.4 billion by 2024, reflecting a staggering 600% growth since 2020. Germany ranks fourth globally, with a market size of €1.5 billion.
Generative AI offers numerous strategic advantages for businesses. A survey by Bitkom reveals that 59% of companies believe generative AI ensures future readiness, while 55% cite enhanced competitiveness as a key benefit.
However, barriers like data privacy and legal uncertainties remain challenges. The Artificial Intelligence Act (EU AI Act), enacted in March 2024, establishes the first global AI regulatory framework. National governments must now implement these regulations.
Despite this, many companies are underprepared. A KPMG study shows that 63% of organizations feel unready for the EU AI Act, with only 8% having a comprehensive governance model. External consultancy and AI solutions with governance functionalities can help bridge this gap.
AI in SMEs: The Top 5 Benefits
Generative AI tools can significantly enhance operations in SMEs across various domains:
1. Data Analysis: Enables processing and analyzing large data volumes for process optimization, data visualization, and anomaly detection, helping identify risks early.
2. Data Privacy and Compliance: SMEs should prioritize providers offering GDPR-compliant solutions and European data center processing.
3. Text Generation: Automates documentation, translation, reporting, and other corporate tasks.
4. Customer Service: AI chatbots provide 24/7 customer support and personalized product recommendations.
5. Marketing: Targeted email campaigns and social media ads tailored with generative AI can drive customer engagement.
AI Solutions for SMEs: Tailored and Cost-Effective
Cost concerns often deter SMEs from adopting AI solutions. IBM addresses this with its flexible and affordable AI and data platform, watsonx, which integrates seamlessly into existing IT infrastructures, minimizing investment risks. Watsonx also ensures complete monitoring of AI applications, whether deployed on-premises or in the cloud.
Generative AI solutions tailored for SMEs are increasingly popular. A standout example is Next Vision’s AI Assistant for Business Solutions, seamlessly integrating with existing business applications and enhancing capabilities across Business Intelligence (BI), Customer Relationship Management (CRM), and Enterprise Resource Planning (ERP).
AI Assistant for Business Solutions: Key Advantages
Integration with Existing BI Systems: The assistant integrates effortlessly with BI platforms, leveraging generative AI alongside traditional machine learning within existing IT infrastructures.
Enhanced Efficiency: Employees save considerable time on routine tasks, redirecting focus to strategic priorities.
Smart Knowledge Management: By incorporating vector-based databases, unstructured data like images and videos are processed for actionable insights.
Compliance and Data Security: IBM watsonx automates governance processes, ensuring compliance with GDPR and the EU AI Act.
AI in SMEs: A Case Study in Customer Service and Maintenance
The Challenge
Many SMEs struggle to streamline service processes and prevent equipment failures. Traditional methods often fall short in prioritizing tasks or identifying technical issues early.
The Use Case
By adopting Next Vision’s AI Assistant for Business Solutions, an SME achieves the following improvements:
- Proactive Maintenance: Sensor data analysis predicts potential issues, preventing failures.
- Automated Customer Service: Real-time, context-sensitive responses with escalation for complex inquiries.
- Efficient Resource Planning: Tasks are prioritized and resources allocated optimally.
- Intelligent Spare Parts Management: Semantic search and IBM watsonx.ai enable swift identification and automation of spare part orders.
The Solution
The AI Assistant for Business Solutions combines IBM watsonx with Next Vision’s expertise to deliver innovative features for optimizing customer service and maintenance. By leveraging AI and deep learning, service processes can be automated, and maintenance measures proactively planned. This leads to increased customer satisfaction and reduced downtime risks.
[1] KPMG has published a comprehensive study on the topic of Generative AI in de German Economy. It can be downloaded for free online by providing your contact information:
https://kpmg.com/de/de/home/themen/2024/05/feste-groesse-generative-ki.html
[2] Bitkom Press Release: For the first time, more than half of companies are engaging with AI: https://www.bitkom.org/Presse/Presseinformation/Erstmals-beschaeftigt-Haelfte-Unternehmen-KI.