AI is a term used to describe technologies which enable computers to perform tasks that usually require human intelligence. While AI tools use a range of different technologies, many newer technologies utilise real-world data to mimic how humans learn, reason, and make decisions. In recent years, a range of new AI tools have emerged and become available for use within commercial settings. These are described below: 

AI has been revolutionary for many small businesses. Here are some ways it can help your business: 

Increased productivity: AI can automate many time-consuming routine and repetitive tasks. This can range from managing your emails and scheduling appointments to managing your inventory or even quality control of your products. 

Improved decision-making: AI tools can help analyse large amounts of data that your business generates to provide actionable insights. This can assist you in making more informed decisions, whether it's identifying market trends, enhancing your product or service, or streamlining your processes. 

Enhanced customer experience: AI can also be used to improve your customers' experience. For example, chatbots can provide 24/7 customer support, and recommendation systems can help personalise your customers' shopping experience. 

AI tools are limited by the quality of the data they have been trained on and how they were built. AI tools are not always reliable and can embody the same biases and errors as exists in the training data.  

For example, Large Language Models such as ChatGPT look for trends in speech patterns and predict what would be an appropriate response. This can sometimes result in a 'hallucination' where the content is not factually correct. Other limitations include not being up to date (if the model was trained on outdated data) and omitting other relevant information.  

What does this mean for me? 

• It is often recommended that AI tools be used as a 'co-pilot' complementing rather than replacing human judgment and quality assurance.  
• You should continue to seek expert and professional advice from trusted advisors.  
• While you may empower your staff to use AI tools, you may want to develop protocols for responsible use. 

A further consideration relates to the sharing of sensitive information and data with a third-party AI tool. You should avoid sharing confidential or private information with a third-party service if you are unsure of how your data will be handled or whether it will remain secure.  

What does it mean for me? 

• Use AI tools in a manner that does not require you to share private or sensitive information.  
• Be aware of your privacy or other legal obligations. 
• Select AI tools from trusted sources and stay informed about their performance. 

With the recent release of Large Language Models such as ChatGPT, many small businesses have explored ways they can assist in writing content (such as emails and marketing materials), analysing data, learning new information, and generating new ideas.  

Here are three case studies which explore real-world applications of AI: 

Case study 1: Fitness Club 

Martin Rees of Genetics Fitness Club, a fitness centre in Warners Bay, was looking for ways to make his business run more efficiently. He started using AI to help write emails to connect with members, especially those who had been absent for extended periods. AI also helps him with customer data analysis, by creating formulas and spreadsheets. Martin says he would next like to explore how AI can help with people management. 

"AI simplifies the process of automation and the sending of communications to customers." 

Case study 2: Product Design 

Aimee Jeffress of Design Anthology in Charlestown, views AI as an indispensable partner in her product design firm. Aimee uses AI to digest industry-specific knowledge quickly and communicate complex designs clearly. Aimee remains vigilant and always verifies the information generated by AI, but the time and effort saved outweigh these concerns. They can reach wider markets more easily at an expense of less than $100 a month in AI subscriptions. This agility offers a competitive advantage and Aimee warns some businesses risk being left behind: "Adopt AI or risk becoming obsolete." 

“Writing is energy draining and while AI-generated content needs to be fact checked, it adds value in a fast-paced environment”. 

Case study 3: Manufacturing 

Faith Northcott of Redline Trailers, a family-run trailer manufacturing business in regional NSW, has adopted AI to create written and visual content for social media and website updates. Recently, she used AI to generate a script for a TV advertisement, which received positive feedback. She is now planning to set up an AI-integrated Customer Relationship Management (CRM) system to better connect with clients via their website. AI saves considerable time, which is invaluable for businesses like Redline Trailers that need to wear so many hats at once. 

“Our son introduced us to ChatGPT and we upgraded to the paid version two days later. It helps us save time.” 

If you are using a Large Language Model such as ChatGPT, you may want to start by first exploring what the tool can and can’t do. You can do this by: 

• Asking questions about topics you know about to test its strengths and limitations.  
• Experimenting with different types of prompts to see how you can get the best out of the tool.  
• Researching online resources that can give you tips on how to ask the right questions to generate clear, coherent, and helpful answers.  

Remember, there may be other solutions, which use different AI technologies, that may be better tailored to your use case. Some of these solutions may even leverage a Large Language Model such as ChatGPT in the back end but be supported by additional tools and controls. You may be able to research these options online or get tips from experts within your industry.  

Some practical examples of how your business could use AI in your daily operations: 

To learn more and stay across AI developments, there's an abundance of specialised websites and newsletters, podcasts, and online courses available. While this information is constantly evolving, useful search terms include: 

"Ways I can use AI in my small business” 

"Benefits and risks when using AI in my business" 

"Affordable AI tools for small businesses" 

"AI training for small business owners" 

If you are a first-time user, you may also consider asking an AI tool to tell you more about what it can do and how it might be able to help your business: 

Small Business Owner: How can you help my small business? 

AI: I can assist with market research, content creation, creative solutions, problem-solving, educational material, technical support, language translation, customer service support, basic financial analysis, and general legal information. 

Small Business Owner: How do you work?

AI: Imagine I'm a super-smart computer program, trained by reading a huge library of text from the internet. This training helps me understand and respond to a wide range of questions and topics. While I'm pretty good at mimicking a human conversation, I'm still just a tool, using patterns from my training to assist you so it's always good to double-check important details and make decisions based on your own expertise. 

Small Business Owner: What risks should I be aware of? Can I share sensitive private information for analysis? 

AI: Use AI as a complementary tool and always safeguard sensitive information. Verify critical information independently and consult professionals for specific legal or regulatory advice. Use AI suggestions as a guide, not as the sole basis for decisions and be aware of limitations in understanding complex contexts or industry jargon.  

Before evaluating how AI could improve your operations, you may also benefit from consulting with a business expert to understand your business strengths and opportunities.  

The NSW Government Service NSW Business Bureau offers free personalised business support to assist small business operators to start and grow their business. Assistance available includes: 

• Service NSW Business Concierge service – personalised support, including help with setting up a business, registering a business name, identifying and applying for relevant grants, licences, and any financial assistance.  
• Service NSW Business Connect advisors – free and expert business advice in one-on-one sessions. Advisors can help with all aspects of running a business, including planning, marketing, and cash-flow.  

The TAFE NSW Introduction to Artificial Intelligence (AI) microskill is a non-technical introduction to how machines learn from data, exploring various use cases and applications of AI. This free course covers real-world applications of AI and how AI is transforming the world around us, common AI terminologies and advice from industry experts. It can be completed at your own pace, and you will have access to it for a period of 4 months from the day you enrol. See https://store.training.tafensw.edu.au/product/introduction-to-artificial-intelligence/ for further details.