Navigating the start of AI adoption in SMEs

Only recently, it felt like my LinkedIn feed was filled with content on blockchain, and the clients I was working with asked me, 'How do we integrate this?' Fast forward to today, and I am lucky to see anything about blockchain on my feed as it is crowded with generative AI.

This question is coming up in my conversations with leaders of Australian SMEs; they are expressing that they need to do something with generative AI but are still determining where to start. This was one of the drivers of founding Friyay.ai in 2023. My co-founders and I saw the problem as not whether generative AI will be integrated but how and when. This change reflected a broader realisation: generative AI isn't just another tech trend; it's the new context for how we work and has become one of, if not the most critical element of business strategy.

Recall the days when the internet was new, and businesses were trying to understand its impact. Today, generative AI brings a similar problem. It's not a new technology but a shift in how businesses operate. SMEs, agile and often more adaptable than their larger counterparts, are uniquely positioned to harness this shift. But the critical question remains - how does AI fit into the larger picture of their long-term business strategy?

Our experience is that you start aligning generative AI with the core objectives of your business. It's not about implementing generative AI for its own sake but about ensuring it complements the direction of your business. Understanding generative AI's specific role in customer service, operational efficiency, or innovation is crucial.

This clarity is essential, echoing the days when digital strategies were being formed. To understand the specific roles generative AI can have in your business, begin with understanding the problems that need solving. This can be done by asking your team what tasks they find cumbersome and what they would rather spend their time on if freed from these tasks. This process helps pinpoint the areas where AI can have the most significant impact. This is important because it helps position generative AI as an augmentation tool. It stops being seen in your business as replacing human skills but enhancing and complementing them.

View it as a partner rather than a substitute. In my work with clients, I've seen how shifting focus from the technical prowess of generative AI to its practical applications can be enlightening. A standard tool we use is Otter.ai (note: we get no kickbacks from Otter; we use it because it is a great tool). Initially a meeting transcription tool, it can transform into an ideation assistant. When teams express a dislike for starting projects or brainstorming from scratch, Otter.ai steps in. You can open it up the next time you talk with a colleague about an idea. It will take notes and help generate initial ideas with the right prompting, offering a starting point for further development.

In saying this, the path to integrating generative AI is challenging. It involves navigating data privacy concerns, ensuring ethical AI use, and managing change within your business. Overcoming these challenges requires strategic planning, engaging with experts, employee training, and a commitment to ethical standards.

At Friyay, we are fortunate to have experienced cyber security experts from whom we get help. Employee training on generative AI ensures effective use and alignment with long-term goals. This step is like the early days when I was working on digital transformation programs, highlighting the importance of adaptability and continuous learning.

Then, like with any initiative or program, measure the impact. Be clear on what you measure and hold your generative AI projects accountable to these metrics. It helps you make decisions based on your context. If it is not liberating your time and helping you grow your business, understand why, and if needed, move on to the next experiment. These experiments shouldn't be 12 to 18 months but four to six weeks!

The effectiveness of generative AI should measured in productivity gains and the enhancement of creativity and innovation. It's about seeing how the tools free up creative thinking and problem-solving time, leading to more innovative outcomes. Generative AI offers immense potential, but realising this potential requires a human-centred approach. It's about starting with the problems, augmenting human capabilities, and aligning technology with your strategic vision. This approach enhances productivity and opens doors to creative and innovative solutions.

Please feel free to connect if you'd like to explore the potential of generative AI in your business. I'd love to help you make generative AI an asset in your business's growth and innovation strategy.

Gareth Rydon is a co-founder and service designer at Friyay.ai studio, where his work centres around embedding human-centred design principles into generative AI. Discover more at www.friyay.ai