Is AI relevant to my family business?
Modern business is changing, in part because of emerging tools and platforms that digitally transform how we work. At the center of the change is artificial intelligence (AI). Companies of all sizes are evaluating these emerging technologies to improve operations and stay competitive. AI has the potential to transform the way businesses operate, and family businesses are no exception. Here are just a few ways that family businesses can use AI to their advantage.
Using AI and Big Data to Compete with Larger Organizations
One way that family businesses can use AI is by leveraging big data to compete with larger organizations. According to LIGS University, the use of AI and data analytics can help smaller family-owned businesses compete with larger companies. By analyzing data, family businesses can gain insights into customer behavior, market trends, and other factors that can help them make better decisions. Some specific applications for AI include:
Leveraging Big Data: Family businesses can use AI to analyze big data to gain insights into customer behavior, market trends, and other factors that can help them make better decisions.
Eliminating Data Issues: AI can help family businesses clean up data by detecting missing values and ensuring consistent terminology, which can save time and provide beneficial business insights to facilitate decision-making.
Analyzing Customer Data: AI can analyze data on customer usage patterns, feedback, and preferences to provide invaluable insights necessary to understand customers better.
Automating Tasks: AI can automate time-consuming, manual tasks, such as responding to commonly asked questions from customers, which frees up employees for more complex issues.
Marketing Efforts: Family businesses can use AI in their marketing efforts to personalize content, optimize ad targeting, and improve customer engagement.
Implementing AI in a Principled Way: Family businesses must implement AI in a principled way to optimize customer experience and earn people's trust. This means using AI in a way that is ethical, transparent, and accountable.
Acquiring the Right Skills
To use AI effectively, family businesses need to acquire the right skills. As Workday Blog notes, understanding how to use AI requires people to acquire a new set of teachable skills. Organizations need people who understand the underlying technology and can apply it to solve business problems.
Implementing AI in a Principled Way
Business leaders must implement AI in a principled way to optimize customer experience and earn people's trust, according to Strategy+Business. This means using AI in a way that is ethical, transparent, and accountable. Family businesses should ensure that they are using AI in a responsible way that aligns with their values and mission.
Reflecting on the Value Creation Case for Generative AI
Some CEOs may decide that generative AI presents a transformative opportunity for their companies, offering a chance to reimagine everything, according to McKinsey. Others may want to exercise caution, experimenting with a few use cases and learning more before making any large investments. The goal of this article is to help CEOs and their teams reflect on the value creation case for generative AI and how to start their journey.
In conclusion, family businesses can use AI to improve their operations and stay competitive. By leveraging big data, acquiring the right skills, implementing AI in a principled way, and reflecting on the value creation case for generative AI, family businesses can use AI to their advantage. As a CEO of a family business, it is important to stay up-to-date with the latest AI trends and developments to ensure that your business remains competitive in the digital age.
Citations:
[1] https://ligsuniversity.com/blog/using-of-artificial-intelligence-and-big-data-by-small-family-business-to-compete-with-big-organizations
[2] https://blog.workday.com/en-us/2020/CEO-perspective-how-artificial-intelligence-is-transforming-businesses.html
[3] https://www.strategy-business.com/blog/Five-Standards-for-Responsible-AI-Use
[4] https://www.illumine8.com/blog/inbound-marketing-growth-strategies-for-your-contractor-family-businesses
[5] https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/what-every-ceo-should-know-about-generative-ai
