Artificial Intelligence (AI) is no longer just a buzzword but despite this, it can still feel very overwhelming. After all, what does the future hold in a world where robots and machines are seemingly taking over our human-led jobs?
Yet despite these worries, for many small and medium-sized businesses, AI is proving to be an essential and beneficial ally in today’s ever-evolving and fast-paced realm. What’s more, where AI was previously constrained to giant corporations, now we’re seeing businesses of all sizes all around the world being assisted and indeed levelled up by AI.
From enhancing customer relations to supporting tedious administrative tasks, AI’s potential is already reaching beyond the unexpected. And now, as this guide sets out, AI technology could be used to tackle routine and often mundane human chores.
AI in fintech: a basic snapshot
In its most basic form, AI is like a digital brain. It reasons, learns and decides. While AI has been revolutionising several industries over the years, its potential in fintech is possibly one of the most impressive. Extending beyond mere calculations, AI is personalising experiences, swiftly detecting fraud, making financial decisions easier, and much more.
It’s no surprise that many online banking apps are already employing AI for better financial management. It’s no longer a distant idea and is instead an active partner working directly with small and large businesses in fintech – redefining the world of SMEs as we know it. That’s not to say that there isn’t a place for humans anymore. Instead, AI perfectly complements the human touch. To find out how, just keep reading.
AI, SMEs and human teams
If you hear the words, artificial intelligence, and instantly feel a chill, you’re not alone. The term feels futuristic and reserved for the tech elite. However, delve in and you’ll see that modern technology including the likes of AI is actually ever-evolving and increasingly becoming more accessible. No more is AI exclusive. It’s inclusive, inviting all businesses in, including fintech.
SME challenges and AI solutions
It’s no secret that operating an SME can be challenging. After all, you’ve got to cater to customers, analyse data, and take care of that already piling-up administrative work. This is where AI comes in, acting as your digital aide. Indeed, it can manage vast data, detect patterns, and more, acting as a tech-smart support system.
Just imagine a boutique financial firm leveraging AI for tailored investment advice, or a community bank using AI chatbots for round-the-clock queries. Not just that but AI chatbots can manage questions, offer solutions, and even indulge in light-hearted conversations. AI rapidly detects financial discrepancies, acting as a vigilant protector too. And gone are the days of manual paperwork. AI can process and schedule efficiently, letting you concentrate on innovation. These are real-world examples and triumphs from the SME sphere.
Plus, with user-centric tools and inclusive features, AI really is accessible to everyone. While it might be advanced technology at its finest, at the heart of what AI does is enhancing efficiency and helping businesses to deliver previously unheard-of services. Surely this is something that every business could benefit from. Even better, it’s simpler and more affordable than anticipated. Another reason why AI can help everyone.
Balancing AI and humanity
It can’t be ignored that while AI is transformative, it can’t replace human warmth and instinct. Instead, it should be viewed as a complementary force. For this reason, a specific strategy is required to implement AI with success.
Begin by identifying the areas AI could benefit before diving in. Then, find AI tools that fit in with your SME’s requirements and be sure to integrate them with existing processes to ensure that everything aligns.
We also can’t consider the ethical discussions that AI inevitably brings about. Safeguarding customer data is paramount, especially with AI handling vast amounts, and you need to ensure that any AI operations are fair and transparent while, of course, adhering to regulations. With these tasks ticked off, however, the benefits of AI have no limits.
The future of AI-driven SMEs
The coming era promises personalisation, innovation, and sustainable business practices but one thing is certain, embracing AI as your digital partner can be transformative. Plus, instead of viewing AI as an opportunity to sideline human capabilities instead steer the conversation in a way that proves AI will amplify them. The journey might be unpredictable, but with AI by your side, it promises to be transformative.
Chirag Shah, founder and CEO of Nucleus Commercial Finance and Pulse.io has over 20 years of experience in the financial services industry and a deep understanding of the needs of UK SMEs.
In 2011, he founded Nucleus, a leading alternative finance provider, to offer flexible and tailored solutions for SMEs across various sectors and stages of growth. With an understanding of the challenges that UK SMEs face in the current economic climate, Chirag launched Pulse in October 2022, a free-to-use service that helps businesses and accountants gain insights into financial performance with AI-powered data visualisation and personalised dashboards. Chirag is not only committed to driving growth and innovation in the UK business ecosystem, but he’s also helping SMEs better understand their data to boost their profitability and guide them towards success.
