Artificial Intelligence has become a significant driver of innovation and efficiency. Yet, small and medium-sized businesses (SMBs) in the online retail sector struggle to incorporate this technology into their operations.  

However, if they consolidate their data onto a unified platform, SMBs can begin to use the power of AI, providing these organizations with a centralized hub of assembled data and allowing them to take advantage of advanced AI. 

Overcoming AI Hesitancy 

A Deloitte and Stanford University study found only 25% of SMBs currently utilize AI. In contrast, larger corporations have a 40% AI adoption rate. 

SMBs face unique problems that lead to hesitancy when incorporating new technologies, such as up-front costs, staff training, integration challenges, promoting awareness of changes and measuring customer feedback. 

Companies with fewer than 100 employees use an average of 16 to 24 Software as a Service (SaaS) applications while businesses with 100 to 999 employees utilize 47 to 93 applications. Unfortunately, this leads to fragmented data, which increases the strain on resources. 

Undeniable Benefits 

A McKinsey & Company report found 71% of consumers expect personalized interactions with the companies they do business with, and 76% get frustrated if that expectation is not met. Also, faster-growing companies drive 40% more of their revenue through customer personalization than enterprises with slower growth. 

AI-powered personalization can enhance the customer experience. AI-generated product recommendations and special offers will lead to more sales and greater customer loyalty. Additionally, AI can provide insights into customer behaviors and buying habits. 

For SMBs, AI will provide access to data-driven analysis, enhanced sales forecasting and customized marketing strategies. Meanwhile, AI chatbots can improve customer engagement and provide more personalized experiences. 

Challenges in AI Implementation 

One of the challenges of implementing AI for SMBs is finding and retaining skilled professionals because larger corporations are competing for the same talent pool. Additionally, the quality of data for training is an obstacle since obtaining clean, relevant and sufficient information can be more complicated for smaller businesses. 

There are also ethical considerations, such as data privacy, security and possible algorithmic biases. SMBs must ensure responsible AI usage by adhering to related regulations and industry standards. 

AI Integration Strategies 

SMBs must have access to diverse datasets. SMBs with smaller datasets can connect with platforms that offer comprehensive data and AI analytics integration. A unified e-commerce point of sale and content management system (CMS) can provide SMBs with a synergetic enterprise platform, enabling seamless implementation. 

SMBs can use cloud-based AI solutions with affordable and scalable capabilities, allowing smaller businesses to capitalize on AI algorithms without large upfront investments. This approach enables SMBs to adopt AI solutions that were once reserved for larger organizations. 

SMBs need to align themselves with enterprise-level solutions to overcome the challenges of AI implementation and maximize its potential. Businesses can gain a comprehensive overview of their operations by centralizing all data within one platform, empowering SMBs to stay competitive in the e-commerce sector. 

Mikel Lindsaar is chief executive officer and founder at StoreConnect