What you should know when using AI for your business

You’ve already seen the headlines about Artificial Intelligence (AI). You may have heard it will change everything. Maybe you’ve even tried ChatGPT or Bing Chat, but haven’t considered how you will use it in your business?

So, what is really happening with AI? Is it just a tool for big businesses or can it also help small businesses?

Like computers and the internet before it, AI is on track to becoming an important part of doing everyday business. AI is still in the early stages, but as research develops AI-powered tools will become more and more common across all areas of business.

CSIRO’s National Artificial Intelligence Centre (NAIC) Industry Program Manager Wilhelmina Duyvestyn and AI expert Dr Muhammad Usman, explain what AI is, what tasks it can do, and the opportunities and challenges it presents for small businesses.

AI isn’t magic, it’s maths

Business owners may not realise it, but they are likely already using forms of AI. When you ask your phone for directions, AI helps find the best route. When advertising your business online, AI helps you target people who may be in the market for your product.

While AI might seem like magic, it is software that can detect patterns from datasets. Once it has been ‘trained’ on specific data to know those patterns it uses complex calculations and guidelines to make predictions.

There are different kinds of AI, some of which have been used in computing for decades.

Types of AI

• Narrow AI: These are AI algorithms designed to carry out specific tasks that are typically repetitive or pattern-based. Narrow AI powers your email account’s spam filter and your television streaming service’s recommended shows.
• Generative AI: These are AI algorithms that have been trained on a database of text to recognise the patterns of words and sentences. They produce text, images, or other content in response to prompts, recognising patterns and generating answers. This includes services including ChatGPT, Microsoft Copilot, or Google’s Gemini.

After a breakout year in 2023, Generative AI products may be the first thing that comes to mind when you think of ‘AI’. They are some of the most common ways businesses are using AI, assisting with time-intensive tasks like correspondence, content creation and market research.

Read CSIRO’s explainer on generative AI for business.

How AI can help small businesses

For most small businesses the AI tools that you may want to use already exist. There are low-code, and no-code, off-the-shelf services available. AI services can help enhance business areas including operations, customer service, and decision-making.

“Most small businesses worry about interest rates or the cost of electricity. The challenge for small businesses is they don’t have the time to look at how AI could help their business” said Ms Duyvestyn.

Many small business owners may also believe AI is too expensive for them. “One thing I hear a lot from small businesses is that AI is just for the big corporations. It’s expensive or of no use to us,” she said.

However, Ms Duyvestyn challenges these notions, emphasising that exploring affordable AI options can save business time and money in the long run.

“In recent years there have been a lot of new startups emerge that use AI to help SMEs save time and money,” Ms Duyvestyn said.

“There are services like AI tax assistants, or generative AI for finance or environmental, social and governance reporting. There is one service that analyses your customer data to work out when a customer is not using your product and may be about to leave and provides advice on how to reengage them.”

Dr Usman added that more AI services were rapidly becoming available to help with a huge range of tasks.

“AI is helping in almost everything in the business pipeline. It can help with customer profiling and can be hugely helpful in processing data. You might be able to automate some work that has previously been time-consuming,” he said.

In 2023 CSIRO commissioned research into how the AI ecosystem in Australia was evolving, including exploring its potential for business.

Ms Duyvestyn said “The rise of ChatGPT has brought generative AI to the masses. My advice would be to give an AI tool a try and see if it does help your business.”

To connect with Australian companies providing AI solutions that could help your business search NAIC’s AI Discoverability Portal.

For more information on how businesses are using AI to gain a competitive edge, read CSIRO’s - Australia’s AI Ecosystem Momentum Report.

Using AI responsibly and managing risk

Responsible AI is the practice of developing and using AI systems in a way that provides benefits to individuals, groups, and wider society while minimising the risk of negative consequences.

For businesses planning on adopting AI, it is important to ensure it is being used responsibly. Responsible AI is not just a buzzword; it’s a concept that reflects ethical business practices.

Dr Usman believes AI is a tool like any other, and small businesses should consider how the technology could work to help them, but also be aware of possible downsides

“AI can be of real benefit for businesses. But there are also negatives and risks that people need to be aware of,” he said.

AI systems do not have a true understanding of the information they give you. That means they can, and do make mistakes and shouldn’t be taken as factually correct. Before businesses use the content they should make sure it is accurate and relevant.

Dr Usman pointed out that AI was only as good as the database that powered it.

“How an AI is trained will determine what it produces. If it is trained on data that is biased, it will produce biased answers. Similarly, if the AI tool is easily tricked then it could be manipulated, which is a potential security risk. It is important that any AI tool you use is ethical and accurate, and rigorously tested,” he said.

Businesses using an AI system should also understand and fulfill relevant legal obligations regarding privacy, personal data and safety, and the potential impacts for them and their customers.

CSIRO has partnered with the Australian company Red Marble to develop and test prototypes that will help businesses use AI safely and effectively.

Find out more about Responsible AI: Three tools to help businesses.

Implementing AI in your business

Once businesses have found an AI tool they believe could be of benefit, it is important to make sure it meets their needs before inputting company data.

This can be done by running a pilot program before scaling it up across a business. This allows for a controlled and measured adoption of AI, enabling businesses to understand and manage the impact of Responsible AI on their operations.

There are practical steps that all businesses should consider and take before implementing AI in their businesses. Read CSIRO’s Navigating Responsible AI in small and medium business guide.

Artificial intelligence has the potential to be as big of a game changer as the internet was for business. While the technology is still in its early stages, it is already powering tools that can help carry out tasks essential for running a small business, like providing a better understanding of your customers and their needs. And more programs are being developed all the time.

Want to know more about AI and how it can assist your small business? CSIRO’s National AI Centre and the Institute for Applied Technology Digital have partnered to offer one million free ‘Introduction to AI’ scholarships.