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Small Business Success Through AI Adoption

jessikaledezma

Updated: Dec 2, 2024


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Artificial intelligence is changing how we use technology and go about our everyday tasks, making things like routine work more accessible and helping us make better decisions. Integrating AI into small businesses has been slow but holds much promise. Many small business owners are reluctant to adopt AI because they either do not fully understand how it works or are unsure if it will benefit their business. Even with these concerns, AI has the potential to help small businesses improve their decision-making, become more efficient, and even open new ways of doing business. The gap between what AI can offer and how widely it is being used shows that more support and understanding are needed to help small businesses implement this technology.


The article "Factors Influencing the Adoption Intention of Artificial Intelligence in Small

 Businesses" offers valuable information about why many small businesses struggle to

adopt AI and the factors that might influence them to integrate these tools into their operations. The study was done by interviewing 43 small business owners in Brazil to understand their thoughts on using AI. Nascimento and de Souza (2022) explored the main question, "Which main factors influence the entrepreneur's intention to adopt AI in small companies?" (p.3). The researchers asked about the benefits and challenges of AI and what might encourage or discourage businesses from using it. Nascimento and de Souza (2022, pp. 5–7) identified nine key factors influencing the decision to adopt AI:


  1. Performance Expectancy

  2. Business Model

  3. Effort Expectancy

  4. Self-Efficacy

  5. Trust

  6. Business Compatibility

  7. Social Influence

  8. Trial Ability

  9. Technical Support


The article highlights that even if a business understands that AI could be helpful, it is often hesitant to adopt it if the tools seem too complex, unreliable, or difficult to use. This is one reason businesses may avoid AI even if it seems beneficial. Some small business owners do not feel confident enough to take the risk. Another point in the article is how AI can help small businesses be competitive with larger companies. In the past, AI tools and technologies were often too expensive or complicated for small businesses, but today, AI has become more accessible. Small businesses can now access powerful tools like automation and data analysis to improve operations, improve customer service, and identify new growth opportunities (Nascimento & de Souza, 2022, p.2). However, the article also emphasizes that small businesses need support to use these tools effectively. Many small businesses worry about whether they can integrate AI into their operations, and without proper guidance, it can feel like a challenge. The article also explains that small businesses will only adopt it if the tools are affordable, easy to use, and relevant to their needs.


Image retrieved from: freepik.com


Throughout my research, I have looked more into artificial intelligence, available tools, especially for small businesses, and their challenges and benefits. It was time to focus on the factors that can help small businesses successfully bring these tools into their operations.

 In conclusion, the article discusses the importance of understanding the factors influencing AI adoption in small businesses. As stated by Nascimento and de Souza  (2022), "Understanding those topics and new factors will be helpful for small companies to make informed decisions when implementing AI and for AI suppliers to design more efficient implementation processes, considering the human factors involved in AI adoption” (p.8). It is essential to help small businesses take advantage of the opportunities artificial intelligence offers and make informed decisions about implementing it in a way that works for them. As AI develops, small businesses must be given the tools and knowledge to keep up with this technology and use it to improve their operations. This article is a helpful resource for anyone looking to understand the challenges small businesses face in adopting AI and how those challenges can be addressed to encourage growth and innovation.

 

 

References

Nascimento, A. M., & de Souza Meirelles, F. (2022). Factors Influencing the Adoption Intention of Artificial Intelligence in Small Businesses. Information Systems in Latin America.



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