5 Predictions About How AI Will Affect Small Businesses in 2024

by | Dec 29, 2023 | Ai Technology, Focus Blog, Press, Tips

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Alright guys, buckle up for a long one. I’ve done my best to keep it as short as possible, but there’s just too much important stuff to cover. We’re talking about a genuine game-changer for small businesses.

As we edge closer to 2024, the buzz around artificial intelligence (AI) is everywhere – from news headlines to social media feeds. Beyond the sea of futuristic forecasts and fear-inducing narratives, there’s a more grounded and thrilling story to be told: The Impact of AI on Small Businesses. It’s a time of unprecedented opportunity, where the playing field is leveling. Now, small businesses have the chance to wield the same powerful tools that were once the exclusive domain of multi-billion-dollar corporations. In this light, let’s delve into the top 10 ways AI is set to reshape the landscape for small businesses in 2024.

1. Early Adopting Small Business Owners Will Skyrocket in Growth

Many small businesses are run single-handedly, with the owner not only serving customers but also managing phone calls and administrative tasks. This multitasking limits growth: as the owner becomes busier with tasks, they have less time to answer calls from potential new customers, leading to a plateau in business expansion. Often, this plateau occurs just shy of the financial ability to afford additional office space and staff to manage these calls.
Outsourcing solutions, such as call centers, present a cheaper alternative, typically costing between $1,200 and $1,600 per month. However, they often fall short of expectations for various reasons. This scenario is changing with the advent of AI customer support solutions like inSRC Ai. For just a few hundred dollars a month, these businesses can access unlimited phone support capable of efficiently handling inbound customer calls.
This technology enables single-person businesses to never miss a customer call, allowing them more time to focus on scheduled work. This leads to increased productivity and revenue, creating a win-win situation. Therefore, it’s expected that small businesses which are early adopters of such technologies will experience significant growth this year.

2. AI Brings Market Insights Within Reach for Small Businesses

While the approach remains agency-focused, the affordability of data analysis is undergoing a significant shift. Traditionally, businesses faced two main options: first, a labor-intensive process where a team would spend hours analyzing website traffic, conversions, and competitor research to inform market strategies. Alternatively, businesses might resort to making uninformed assumptions about customer desires to shape their offerings, which is not an ideal strategy.
However, with the creation of new AI technologies capable of sifting through huge amounts of data in minutes, the landscape is changing. Agencies like ours can now offer services that previously required days of work by multiple staff members in just a few hours. This evolution dramatically reduces the cost and time involved, making sophisticated data analysis accessible to most businesses. This allows companies to make far more informed and strategic decisions about how to engage with their market.

3. It’s not all roses though…

As AI tools become increasingly available, they are set to ignite a fierce competitive landscape among businesses. This technological wave is not just a trend; it’s ushering in a paradigm shift that could redefine the pecking orde.
Businesses slow to adopt AI technologies might soon find themselves lagging. We’re entering an era where long-standing companies, previously thriving on local reputation, could falter. Their success, often tied to an older demographic, may not resonate with younger generations who lean heavily on digital solutions for their needs. Consider the scenario of a homeowner with a malfunctioning AC unit. Instead of the traditional method of seeking out a service provider via phone book or calling their friend for a referral, they might simply say, “Malcolm, find an AC repair service.” Their AI system would then scour through thousands of public metrics like Google rankings and reviews to select and schedule the best service provider, all without the homeowner lifting a finger.

This shift is monumental. The local repair expert, with decades of experience but no digital footprint or AI integration, will miss out on these opportunities. As younger, more tech-savvy generations move into decision-making roles, their preferences for digital solutions will increasingly sideline traditional methods. The era of flipping through a phone book is fading, replaced by voice-activated AI systems capable of making informed decisions based on a plethora of online data.
For the seasoned business owner who ignores this shift, the consequences could be severe. They risk becoming invisible in a world where AI not only makes recommendations but also schedules appointments based on the user’s calendar, ensuring maximum convenience. In short, the rise of AI and digital technologies is not just changing how businesses operate; it’s reshaping the very foundations of customer interaction and market dominance.

4. AI Affordability

The AI technology sector is experiencing a surge reminiscent of the dot-com boom of the late 90s. Just like in our own company, where we have multiple AI products in the pipeline, it’s a trend that’s happening across the industry. This widespread development is setting the stage for an intensely competitive market among AI technology providers.
As I remember the early days of graphic editing software, which initially commanded a huge price tag, competition has totally reshaped that landscape. What once was a significant investment is now accessible for $20 per month. This transformation was largely due to the opening up of the market and increased competition. Unlike those early days, the AI sector is already brimming with competition, suggesting that most AI applications will be introduced at much more affordable prices.
For instance, we have al project in development set to disrupt the current market standards. We’re aware of a competitor whose product starts at $13,000, but when we launch our version in January, it will come with no startup cost – completely free. This move will undoubtedly shake up the market.

This trend is likely to be replicated across various AI applications, which is fantastic news for small businesses. The cost of a full suite of AI services could be less than a typical power bill, yet the benefits it provides are worth thousands of dollars. This affordability and accessibility of AI technologies mean that small businesses can leverage these tools to compete more effectively, innovate, and grow in ways that were previously only possible for larger corporations with deeper pockets

5. Quality and Affordable Content Creation Now Available for Small Businesses

The realm of content creation has undergone a massive shift thanks to the effectiveness of tools like ChatGPT, MidJourney, Stable Diffusion, and Bard. This change is significant, especially in the context of how content has been traditionally created.
For many years, content creation remained a costly and time-consuming endeavor. If a business wanted to improve its Google ranking, it needed fresh, high-quality content regularly. This typically involved either writing content in-house or hiring professionals, with content writers sometimes charging as much as $2 per word. So, a 600-word, SEO-optimized article could cost upwards of $1,200. Add to this the need for accompanying images, requiring a graphic designer or photographer, and the total cost for a single monthly article could easily reach $2,000. This high cost acted as a barrier, ensuring that only those who could afford it could benefit from higher Google rankings and increased business.
However, the advent of new AI tools has drastically changed this landscape. These tools allow businesses to access similar services at a fraction of the cost. For example, let’s consider one of our packages. We charge $80 per keyword, which covers keyword research, competitor analysis, creating an article outline, writing the article, creating an image, and then posting and submitting the new content to Google. Thanks to our AI tools, what was once a 10-12 hour task is now a 40-minute process.
This has made what was once prohibitively expensive for small businesses now very affordable. For the first time ever, high-quality content creation is within reach for a broader range of businesses, leveling the playing field and opening up new opportunities for growth and visibility for small businesses like never before.

Conclusion

As we approach 2024, AI is evolving from a buzzword into an essential tool for small businesses. Its impact is profound, streamlining operations from customer service to content creation. AI-driven solutions are leveling the playing field, allowing small businesses to access insights and efficiencies once reserved for larger corporations. This shift is not just about staying current with technology but is crucial for survival and growth. Embracing AI is key to maintaining competitiveness and relevance in an increasingly digital marketplace. For small businesses, adapting to and integrating AI advancements is no longer a choice but a necessity for success in the coming years.

 

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