The emergence of generative artificial intelligence (AI) tools in 2023 has set the stage for a transformative year in 2024, as businesses and individuals alike begin to explore and adopt this groundbreaking technology. Small and medium-sized businesses (SMBs), in particular, are starting to recognize the potential impact of AI, with a recent Visa survey revealing that 90% of Generation Z and millennial SMB owners, 91% of Generation X SMB owners, and 70% of baby boomer SMB owners are aware of AI and its potential business applications.
However, as SMBs navigate the complex landscape of AI, they may encounter challenges related to limited resources and technical expertise. Despite this, AI adoption among SMBs is growing, with a notable 26% of SMB leaders using AI tools like ChatGPT for personal and business purposes. As SMBs continue to integrate AI into their operations, it’s important to understand the ways in which AI can drive business growth and efficiency.
## Three ways business can drive growth with AI
AI is revolutionizing industries and redefining business operations, offering SMBs opportunities to streamline processes, meet customer demands, and enhance productivity. The survey mentioned earlier revealed that SMB leaders believe AI will have the most significant impact in customer support, operations, marketing, accounting, financial management, sales, human resources, and recruiting and hiring.
### 1. Start by strengthening its foundation
Every SMB, regardless of its stage of growth, has administrative needs that are essential for business operations. These tasks often require a significant amount of time and can be prime candidates for automation using AI tools. By integrating virtual assistant tools into areas such as bookkeeping and time management, SMBs can streamline routine tasks and improve operational efficiencies.
### 2. Foster human-like communication through natural language interactions
With the rise of AI-powered chatbots and virtual assistants, SMBs can engage with customers in a conversational tone and provide instant responses and personalized interactions. Investing in technology like ChatGPT enables businesses to deliver swift and seamless customer service, ultimately enhancing the overall customer experience and promoting brand loyalty.
### 3. Personalize customers’ experience with hyper-curated recommendations
AI-powered analytics can provide SMBs with valuable insights into customer preferences, enabling them to offer hyper-curated product and service recommendations. By leveraging AI technology, businesses can deliver personalized experiences that drive brand engagement and loyalty, ultimately contributing to business growth.
## AI technology can help your business grow
As SMBs continue to explore the potential of AI technology, the opportunities for driving business growth are becoming increasingly apparent. Leveraging AI for tasks such as automating routine operations, engaging customers with natural language interactions, and offering personalized experiences can become key drivers of growth for SMBs.
## FAQs about utilizing AI for business growth
**How do you leverage AI for business growth?**
Small businesses can use AI to automate tasks (i.e., virtual assistants for bookkeeping), engage customers with natural language interactions (i.e., ChatGPT chatbots), and offer personalized experiences through AI-powered analytics.
**How does AI increase profitability?**
AI boosts profitability by enhancing operational efficiency, improving customer engagement, enabling data-driven decision-making, and facilitating personalized marketing efforts, leading to increased revenue and cost savings.
**How can AI help small businesses?**
AI can aid small businesses in numerous ways—from automating routine tasks to offering data insights for informed decision-making and more personalized marketing to increase sales.
## About the Author
**Veronica Fernandez**
Veronica Fernandez is the SVP and North America Head of Visa Commercial Solutions (VCS). She joined Visa in February of 2007 and has led numerous teams across VCS, North America Merchant and Prepaid.
**Company:** Visa
**Website:** [www.usa.visa.com](https://usa.visa.com/solutions/visa-business-solutions.html)
**LinkedIn:** [Connect with me](https://www.linkedin.com/showcase/visa-commercial-solutions-vcs/)
In conclusion, as AI technology continues to evolve, SMBs are presented with valuable opportunities to integrate AI tools into their business operations and drive growth in impactful ways. By leveraging the power of AI for automation, customer engagement, and personalized experiences, SMBs can position themselves for success in the rapidly evolving business landscape.
