The rise, rewards and risks of AI for small business

Artificial Intelligence (AI) is growing fast - and in many ways retail has done some pioneering things with it. Read a quick rundown of the key opportunities it can bring to a small business, as well as a brief look at the challenges it can pose.

It’s fair to say the rapid growth of artificial intelligence (AI) has transformed industries and retail has in many ways been a trailblazer in its use of AI for marketing, sales and customer experience.

Where a few brief years ago the use of AI was a luxury afforded only by large businesses, we now have unprecedented access to lower cost, or often free tools, presenting both opportunities and challenges for small business owners.

The Rewards

AI-powered chatbots and recommendation systems can provide a personalised shopping experience, helping to improve customer satisfaction and loyalty.  Bira is experimenting with its own AI chatbot, lovingly called Vera. Already well versed in much of what Bira can do to help independent retailers; Vera is available across the Bira website, 24 hours a day, and has helped countless members already. Experience for yourself what Vera can do by asking her a question any time.

AI can help predict demand, optimise stock levels, and reduce waste, leading to cost savings and increased efficiency. AI-driven analytics can identify trends and customer preferences, enabling targeted marketing campaigns and boosting sales. It can also help to automate routine tasks like data entry and free up time for business owners to focus on other strategic activities.

The Risks

Collecting and processing customer data through AI systems raises privacy and security issues that must be addressed, and an over-reliance on AI can lead to vulnerabilities if the technology fails, is compromised, or used incorrectly. 

Implementing and managing AI solutions requires specialised knowledge, which may be lacking in small businesses, and as AI systems often rely on large amounts of data to function effectively, data privacy becomes a significant concern.

Code of Practice for the Cyber Security of AI

As AI becomes more integral for small business, it is crucial to ensure these systems are secure and resilient to cyber threats.

Bira has been engaging with the Department for Science, Innovation and Technology (DSIT) regarding Code of Practice for the Cyber Security of AI. This code provides comprehensive guidance for developers, system operators, data custodians, end-users and other affected entities to ensure AI systems are secure by design and that end-users are informed and protected.

The voluntary code is extremely detailed and covers key principles such as secure design, development, deployment, and operation of AI systems, as well as supply chain security and transparency.  For those wishing to dive into the code, the guidance can be found here.

At Bira, we are committed to keeping high street businesses updated as the development and adoption of the Code of Practice progresses, and we have expressed the need for businesses to be better protected and educated so AI can be adopted safely and effectively.  

Moving forward, we aim to provide shops with further guidance and support to help them along their AI journey. In the meantime, we encourage retailers to be mindful of the risks, not just the rewards, and to share their experiences and let us know if and how they are using AI for in their businesses.  

Do you wish to share your AI experience?  Do you have any questions or need support on any AI matters? Do you allow your employees to use AI?  Do you even trust AI? Let us know by visiting the Bira forum here.
 
Your insights will help us better understand the needs and challenges faced by businesses in adopting AI technologies.