Empowered SMEs in the Digital Area – and Why the Answers Lie in Embracing AI

Posted on 18th October 2023

For years, the term artificial intelligence (AI) has floated around the tech realm. For small or medium-sized businesses, it seems daunting and technical. But increasingly we’re seeing more SMEs tap into the benefits of AI. In fact, in today’s digital world, AI isn’t a privilege of large corporations. Instead, it’s a helpful ally for all businesses.

From refining customer relations to streamlining administrative roles, AI offers solutions in places you might not expect. Here, we explore everything there is to know and provide real-life examples of how AI could level up your business by lighting the usual human workload.

The role of AI in fintech

At its core, AI emulates human intelligence, crafting a smart computer system that thinks, learns, and decides. Don’t be scared of tech buzzwords like ‘machine learning’ or ‘neural networks.’ These are the building blocks of AI that fuel its power.

In fintech, AI is more than data analytics; it offers personalised services, swift fraud detection, and much more. And we guarantee that the handy online banking app you use probably has AI as its backbone.

Managing an SME is challenging, with numerous roles to juggle. But what if AI could be your digital aide, allowing your human team to work elsewhere in the business on projects that demand creativity and strategy? From analysing vast datasets to identifying customer patterns, AI can shoulder many responsibilities. It’s like gaining a tech-savvy team member!

Imagine a small advisory firm harnessing AI to give tailored investment advice. Or a community bank using AI chatbots for round-the-clock customer support. Not just that but AI can manage queries and even engage in light-hearted chats while you handle other tasks. AI’s analytical prowess can swiftly identify financial discrepancies and assess risks, much faster than traditional methods. Plus, AI can handle tasks like invoice processing and schedule management, allowing you to channel your energy into your business’s innovative side. These scenarios are today’s success stories in SMEs.

With more intuitive platforms, AI is no longer out of reach. It’s an asset available to all, ready to join your team and amplify your capabilities. And it’s not just about competing; it’s about propelling your business to new heights, offering services that seemed unattainable not long ago.

Balancing AI with the human element

While AI offers many advantages, it can’t replicate human warmth and intuition. View AI as a valuable team member, not a replacement. Its ability to complement and enhance your existing human team while freeing up your resources to focus on other business-critical tasks should not be ignored.

To get it right, however, it requires a strategy behind it – from identifying your needs to ensuring ethical integration.

Incorporating AI into your business framework can be likened to introducing a fresh dish to your restaurant’s offerings. Begin with the fundamentals, craft a strategy, and tailor it to your needs. Start by pinpointing the exact requirements you have for AI. Recognize the potential hurdles and the unique benefits AI can offer and decide where it can genuinely uplift your operations. Next, delve into choosing the right AI solutions. A myriad of platforms are tailored to the needs of SMEs. Thus, conduct thorough research, seek expert opinions, and opt for the one that aligns with your requirements. The crux of the matter lies in its seamless assimilation. It’s imperative that this new tech complements, rather than clashes with, your current infrastructure.

Venturing into the world of AI is less daunting when backed by knowledgeable guidance. Engaging with experts can help you navigate potential snags, guaranteeing a smooth transition. As you embrace AI, it’s vital to stay within the bounds of ethical considerations and be cognizant of regulatory norms, especially pertaining to data privacy and security. Rest assured, an AI connoisseur would have these aspects covered for you.

The future of SMEs with AI

If you own an SME, artificial Intelligence might sound futuristic or exclusive to industry leaders. But in reality, AI is more attainable than ever, particularly in fintech. What’s more, the upcoming era promises a world where businesses, with AI’s help, know their customers deeply. A world where constant innovation is the norm and where businesses operate sustainably.

It’s clear that AI has much to offer SMEs. This partnership promises enhanced efficiency, innovation, and harmony between technology and human touch. The fintech world is ever-evolving, and AI might be the partner you need to push you in the right direction.

Chirag Shah, founder and CEO of Nucleus Commercial Finance and Pulse.io has over 20 years of experience in the financial services industry and a deep understanding of the needs of UK SMEs.

In 2011, he founded Nucleus, a leading alternative finance provider, to offer flexible and tailored solutions for SMEs across various sectors and stages of growth. With an understanding of the challenges that UK SMEs face in the current economic climate, Chirag launched Pulse in October 2022, a free-to-use service that helps businesses and accountants gain insights into financial performance with AI-powered data visualisation and personalised dashboards. Chirag is not only committed to driving growth and innovation in the UK business ecosystem, but he’s also helping SMEs better understand their data to boost their profitability and guide them towards success.