Various statistics indicate that smaller companies are more reluctant to adopt AI compared to larger operations. However, this reluctance may be holding small companies back from their true potential. The U.S. Chamber of Commerce states that when small businesses adopt new technology, they generally see an increase in sales, employment, and profit. With all that said, companies of all sizes should develop careful plans before integrating artificial intelligence into their daily operations. Many companies are still in the “exploration stage” of AI integration. In contrast, many other companies are diving in headfirst – a strategy that may prove detrimental. How might a small company benefit from AI adoption? What are some of the dangers of adopting AI too quickly – and without adequate planning? These are questions that an experienced technology lawyer may be able to help answer. 

Is AI Only for Tech Companies?

Generative AI is not reserved for tech companies. In fact, you might argue that one of the key benefits of artificial intelligence is its widespread availability. The whole point of AI is that you do not need to be a tech expert to use it. There is no need to learn how to code, and you do not necessarily need to use complex AI software as a small business owner. 

The obvious example is content creation with generative AI. ChatGPT has gained considerable notoriety in this regard, allowing content creators to generate entire articles and blog posts in seconds. A small business owner might jump at the opportunity to reduce their marketing budget, ditch the freelance writers, and generate all advertising materials with AI in the future. 

This can be highly beneficial in certain situations. If you need to generate web content within a few weeks, and it does not necessarily need to be “perfect,” ChatGPT could put your business on the map sooner than ever before. You might also generate a few blog posts and start ranking for target keywords. 

However, there are a few limitations to this strategy – and some of these limitations are becoming increasingly clear. ChatGPT and other forms of generative AI are not perfect, and this software spits out problematic content from time to time. If you ask AI to create an article for you, there is a chance that you might receive something with errors, grammar mistakes, and other issues. 

A minor typo or mistruth in a blog article might not seem like a big deal. However, these minor errors can become major controversies in certain situations. When you rely on AI to generate crucial content for your company, your reputation may suffer a tremendous blow. Clients and potential leads are now scanning online content for AI-generated content. If they find out you have been generating content with AI, how will this affect your company’s reputation?

Perhaps a more suitable goal for small businesses is chatbot integration. While the average person might expect your content to be human-created, no one expects to speak with a real person when interacting with a chatbot. That being said, chatbot technology today is capable of surprisingly accurate and organic conversations. In theory, chatbots could replace many customer service workers – reserving human interaction for only the most difficult-to-resolve issues. 

AI Can Help Small Companies With Data Analysis

In previous years, data analysis was something reserved solely for major corporations. These were major financial institutions and tech giants capable of crunching data on an unbelievable scale – with computer processing power that a small business could only dream of. 

Today, AI makes complex data analysis easier for smaller companies. The phrase “predictive insights” is now a major buzzword, and you can identify important trends using various AI tools. For example, you might use AI to determine your most promising products. AI tools might also help you learn more about your target audience – including their demographic information. This could help you tailor your marketing strategies for higher conversion rates. 

AI can also help small businesses forecast demand. This may be particularly helpful for companies engaged in transport and logistics. Instead of trying to guess how much inventory to order ahead of time, you can use AI to analyze available data and accurately predict demand. 

Customer Personalization is Easy With AI

AI can also help even the smallest companies customize each customer’s unique experience. A notable case study comes from FC Beauty, a skincare company based in the United Arab Emirates. This company used AI to offer personalized recommendations to each customer. After filling out a quick survey, the AI software instantly recommends the most suitable skincare products based on the customer’s skin type, age, and other factors. 

Consider the Legal Implications of AI Adoption

While adopting AI as a small business may seem exciting, you also need to consider the potential downsides. Although your AI-generated content might contain various mistakes or issues, it could also violate certain intellectual property laws. For example, you might mistakenly generate a logo or advertisement that infringes on a protected copyright. 

You might also run into problems when you use AI to carry out data analysis. In order for the AI software to analyze data effectively, it must be able to access all of your company’s information. This might include trade secrets, patents, customer data, and so on.

Be careful when granting AI software access to data. If you are not careful, this could result in a data breach. Be particularly cautious when using free AI tools. Often, these tools are only free because the company sells your data to third parties. These third parties could be competitors, hackers, and so on. 

Contact John P. O’Brien Today

AI is a complex issue, but this complexity should not hold small companies from achieving their full potential. With guidance from an experienced technology lawyer, you can begin to adopt AI with confidence. John P. O’Brien has considerable experience with legal issues related to artificial intelligence. Although there are many things to consider when adopting AI, the legal implications of this new technology may be particularly important. Book a consultation today to learn more about these implications. During this initial meeting, we can discuss the next planning stages – and how to integrate AI into your operations in a legal, compliant manner.