AI: The Next Big Thing For Small Businesses, Too Posted on : Nov 25 - 2019

Almost every business leader I know has begun to — or is pondering the best way to — incorporate artificial intelligence (AI) into their 2020 growth plan. Clearly, AI is sweeping the globe and "helping to drive the next great economic expansion," as Deloitte noted in its 2019 international survey of AI's early adopters.

Nearly two-thirds of the executives surveyed for the report said AI technology is "very" or "critically" important to the success of their businesses, and most said that AI will help them move ahead of competitors who have been slower to adopt the technologies.

Large companies are all over it, using AI to win customer loyalty by creating highly personalized experiences. But what about smaller operations? Can startups and other small firms use AI and advanced analytics effectively without wasting precious time and money on technologies that even the experts are still working to operationalize?

The answer is a resounding yes — but only if they do it right.

Joining the global revolution.

Most nations are in the process of developing formal strategies — ranging from President Donald Trump's executive order on "Maintaining American Leadership in Artificial Intelligence" to China's "Next Generation Artificial Intelligence Plan" — because of AI's potential to reshape not only industries but entire economies.

Many leaders, not surprisingly, "believe that their countries' futures hang in the balance," according to Deloitte.

That sense of urgency extends to the executive suites of some of the world's biggest brands. According to a survey conducted by London-based venture capital firm MMC (via Forbes), roughly 12% of large European companies currently use AI applications in their business, a threefold increase from just one year earlier.

Fast-food giant McDonald's is paying $300 million to acquire a tech firm that will help it personalize customer experiences, recommend items based on order selections and even check weather patterns to make sure there's plenty of hot apple pie and coffee available on a cold day.

Nike is also putting on the full-court press, using its app to tailor shopping options according to multiple factors, including a customer's purchase history, color preferences, neighborhood and — courtesy of a self-scan — precise shoe size.

"With machine learning and AI, we're able to have every digital experience at Nike be unique and personal," Nike Direct President Heidi O'Neill said in an interview with The Wall Street Journal (via Modern Dealership). View More