A call for a collective response to AI
ARTIFICIAL INTELLIGENCE, AI, is in the air and many small family-owned businesses, FOBs, are not sure of the effect this will have on their businesses.
Going alone blindly i n the dark, behaving as if you know everything is not among the success factors among successful FOBs I have studied in Jamaica and across the Caribbean.
Therefore, small FOBs seeking to embrace AI and any other technology should resist the temptation of travelling as lone rangers, especially when they are not sure of the landscape, and in the absence of any light in or at the end of the tunnel. Taking my own advice, I tapped into the knowledge base of colleagues from the Decision Sciences and Information System’s unit at the University of the West Indies, in getting their input on the impact of artificial intelligence on businesses in Jamaica, with focus on small businesses.
It might be the time to expand this collective and collaborative effort to ensure that small businesses in Jamaica benefit from the collective wisdom of experts from across universities and other institutions in Jamaica. AI is here and there is no option other than for businesses to get on board.
One of the findings f rom studying FOBs in Jamaica and the Caribbean is the slow pace at which many of them are willing to embrace or insert the latest technology in the operation of their businesses. There has not been any clear reason for this attitude towards technology, but anecdotal evidence points to the tendency to “keep information about the family business i n house”.
However, with the everincreasing impact of different technologies on businesses, there is no way out other than to get on board with the changes in technology. This is especially true for small businesses in general and small FOBs in particular. AI is in the air and has become an imperative and businesses that are slow or reluctant to embrace and accommodate this ‘new technology’ will be left behind.
Where should these business start? A good starting point is having a basic understanding of AI, which is seen as the ‘new kid on the block’.
AI AS FOB ‘EMPLOYEE’
Artificial Intelligence generally refers to the use computer systems to simulate human intelligence processes. Applications of AI include expert systems, natural language processing, speech recognition and machine vision. It encompasses a broad range of technologies and techniques, with machine learning, or ML, being a pivotal component. ML is a branch of AI.
Contrary to the belief of many, AI is not truly ‘the new kid on the block’. The field of AI can be traced to the mid-20th century, when researchers began exploring the concept of machine learning and the fascination with creating machines that could think and make human-like decisions.
However, in the past 20-plus years AI has ‘come of age’ and has become more accessible, thus creating a level playing field – a reality that might have led Andrew Ng to refer to AI as the new electricity. What is certain is that AI is more than ChatGPT, the common AI reference for the masses.
Every business would welcome the opportunity of having an employee who can process mountains of data, identify trends and patterns, and make datadriven decisions, in seconds. Oh, having this superstar as a team member will not necessarily come with a cost exceeding the market rate. AI could be this ‘employee’.
More great news, this‘employee’ can be available and affordable for both large and small businesses. In the words of a colleague from UWI, AI is like the Swiss Army knife for businesses – whether you’re a big shot or a small fry, every business is included in the mix.
The technology is ready to level the playing field for the ‘Davids’ going up against the ‘Goliaths’ in the same industry. However, as in many situations, there is a catch. The benefits of AI will depend on the industry and the kind of AI we’re talking about, which might the point where collaboration should begin.
For the small FOBs, AI can add value in the areas of improving efficiency and freeing up time for more strategic tasks. For example, AI-powered chatbots can handle simple customer inquiries, freeing up staff to focus on more complex issues.
INVEST WISELY
AI can also be used to automate inventory management, accounting and other back-office tasks. However, in the excitement, we need to slow down and note that AI is not a silver bullet. As a starter, AI can sometimes be expensive and will require training and support to be effective.
AI is here to stay and one of the challenges that will arise is small businesses wishing to create and implement an internal AI solution. Imagine the scenario where a small local retailer wants to enhance its inventory management using AI.
AI-driven solutions would analyse sales data, current inventory levels, and external factors facilitating the prediction of demand patterns with remarkable accuracy. The solution, though great in theory, would require hiring a developer with experience in AI development, and those talents don’t come cheap.
Andrew Ng, a renowned figure in the AI community and founder of Google Brain, highlighted in a 2022 talk at Stanford University that most AI professionals are employed by large companies such as Google and Microsoft.
For a small company, affording developers or AI leaders may pose a significant hurdle. Additionally, these businesses might not produce enough data to train the model properly, limiting the effectiveness of their AI implementation.
So, where does all this leave the small FOBs? One starting point is the academic institutions. This provides an opportunity for universities and other institutions with the capacity to join in helping to build capacity among small businesses, especially those without the resources to make the requisite investment in AI.
One suggestion is to form a team of experts across universities to assist small businesses.
This is not the time for ‘upmanship’ for any single university or institution with the capacity to help small businesses. This is a call for a collaborative and collective effort going forward to assist small businesses to build their AI capacity.
The message to FOBs is to get ready to engage and don’t be left behind in the AI race. Collaboration cannot happen without all interested parties on board. AI is here to stay and the survival of small FOBs might be dependent on their attitude towards this ‘new kind on the block’.
More anon! Lawrence Nicholson, PhD, is a senior lecturer at the Mona School of Business & Management, University of the West Indies, author of Understanding the Caribbean Enterprise: Insights from MSMEs and Family-Owned Businesses
and a director of the RJRGLEANER Communications Group.