The Rise of AI – And What It Means For Small Business Owners

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The Rise of AI – And What It Means For Small Business Owners

Apr 07, 2023

If you feel like you’re hearing everyone talking about AI (artificial intelligence) lately, you’re right – the conversation about generative AI is rapidly growing, especially with OpenAI’s launch of ChatGPT-4. Some people believe AI will drastically change the world as we know it, whereas others think it’s another passing technological advancement that will fade after the hype dies. We believe that the truth lies somewhere in the middle. AI is here to stay, and it will change parts of the business world, but there are many considerations with its integration into daily life.

A Brief History of AI

Artificial Intelligence (AI) refers to the ability of machines or computers to perform tasks that typically require human intelligence, such as learning, problem-solving, and decision-making. The history of AI dates back to the 1950s when researchers first began exploring the possibility of creating intelligent machines. In the 1980s, AI experienced a setback known as the “AI winter,” where funding and interest in the field declined. However, in the 21st century, advancements in machine learning and deep learning have led to significant progress. Today, many applications use AI, from virtual assistants and recommendation systems to self-driving cars and medical diagnosis. The field continues to evolve rapidly, with ongoing research into new areas and applications.

AI for Small Business Owners

One of the most popular applications of AI right now is ChatGPT-4, which allows users to “chat” with the system to ask questions or generate writing pieces with human-like precision. Other AI applications can create images or art pieces. It’s important to note that while AI can replicate the human quality of writing, problem-solving, art, etc., humans will still need to work with the output to clean and tailor it to the task at hand.

For instance, using AI can be a big time-saver for a small business owner overloaded with tasks. Instead of writing product descriptions for each item in an online store, they might use AI to generate them. They would still need to check over the copy to ensure it fits their brand and has no grammatical errors, but they would significantly reduce the time spent on this task.

Will Jobs Be Replaced?

Some people are worried about how the use of AI in the business world will affect staffing – will copywriters, designers, programmers, and other jobs be replaced? It’s more likely that there will be a shift in these job descriptions. Certain roles may use tools like ChatGPT daily to speed up their workflow and focus more on higher-level tasks like strategy and integration.

For years, many blue-collar workers have worried about robots or other tech replacing their factory jobs and related manual labor tasks. Generative AI has more white-collar workers worried about being replaced. Yet, as we’ve seen with blue-collar industries that have adapted to new technology, plenty of jobs still need to be filled, even if some job responsibilities have shifted. Experts predict that white-collar jobs and AI will prove similar: humans will provide ideas, with AI carrying out the task.

Privacy Protection Concerns

With the power and capacity of AI comes responsibility. Privacy and intellectual property concerns are common critiques of AI applications thus far. Several countries, including Italy, China, and Russia, have banned Chat-GPT after a data breach on the app, which involved user conversations and payment information. Others fear potential HIPAA violations and patient information leaks with its use in healthcare.

Regarding intellectual property, some artists have already called out generative AI apps that use their work as part of the training process for the application. For instance, one AI app was fed information with photos from Getty Images, producing images with a slightly distorted watermark that highly resembles their trademark. The question of who owns the work produced by AI also comes into question for users – if you create the prompt, do you own the output? Or does the application?

Ethical Uses of AI For Business

With these concerns regarding privacy and misinformation in AI outputs, small business owners must strategize how and when they will use AI in their practice. First, business owners should research which AI applications they plan to use and understand how that organization trained (programmed) it – machine learning is inherently biased based on the samples used when teaching the program to problem-solve. While OpenAI’s applications are making headlines, other companies like Microsoft and Google are racing to release their own versions.

Next, business owners should look at their current operations and determine which tasks may be suitable to use AI for and what boundaries need to place. Tasks such as copywriting product descriptions, blogs, social media posts, emails, or summarizing data and analytics are an excellent fit to integrate into AI. However, tasks that concern customer data, payment information, medical history, and more should be regulated more heavily in the name of privacy protection.

Looking Forward

The question is not whether AI is here to stay but how it will integrate into society and work. One of the smartest moves a business owner can make is to keep up-to-date on technological advancements, regardless of whether their business uses it.

There is still a lot to learn about AI – as John Oliver said in a segment about AI on his program Last Week Tonight, “AI is stupid in ways we can’t understand.” This is a crucial point in the AI conversation; even though humans have created AI, the ways that each program processes specific problems are just beyond our current understanding. To move forward with AI in an ethical manner, we need to understand as many of these systems as possible.

Work With The Alexander Group

Small business owners have a lot on their plates, whether keeping up with technology like AI, solving company disputes, scaling their operations, or achieving their goals. Here at the Alexander Group, we offer one-on-one, small business coaching and the chance to join business owners in Greater St. Louis to collaborate and connect.

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What Small Business Owners Need to Know About Email Authentication Requirements

08 Mar, 2024

Have you been having trouble sending out bulk emails and email blasts recently? Are you suddenly having deliverability issues with clients and vendors you've been emailing for years? If so, you're not alone — Google and Yahoo rolled out new DMARC requirements in February, creating headaches. We have heard that many of our small business owner clients and their IT departments are having such headaches. To investigate this issue, we have leaned on IT expert and long-time TAG peer board member Fred Moore of Moore Computing. Fred has walked us through changes to DMARC and offers advice on how small business owners can get their emails back into the inbox. While DMARC changes have thrown many into a temporary tailspin, the changes represent a move to safer and more secure email communication for all parties. Let's discuss what small business owners need to know about DMARC, how they can ensure their emails reach customers' inboxes, and how to keep their business digitally secure. What is DMARC? Cybersecurity measures are similar to cars: most of us drive one daily, but most are unable to lift the hood and understand exactly how it runs. Most of us rely on cybersecurity measures to keep our businesses safe online, but we may need help understanding the technical elements that keep us safe. That said, all small business owners should have a general background in cybersecurity, and DMARC is a great place to start. DMARC stands for "Domain-based Message Authentication, Reporting & Conformance." The idea behind DMARC is to limit the volume of scams and phishing on the internet. DMARC works with SPF and DKIM. SPF (Sender Policy Framework) is a list of services and servers that are authorized to send emails on behalf of your domain, and DKIM (DomainKeys Identified Mail) is a digital seal that verifies the content of your email hasn't been altered or tampered with. DKIM is also able to withstand email forwarding, whereas SPF can not. Senders and Recipients At its core, DMARC validates the authentication of the sender of an email message. When there are deliverability issues with a message, it usually falls back on the sender. Small business owners know the importance of getting marketing campaign emails and other communications into their customers/clients' inboxes; to accomplish this, it is crucial to follow all protocols to ensure you have the best chances to reach customers' inboxes at an optimal place (i.e., not the spam folder), and avoid spam complaints. How does your email make its way to recipients? It follows a basic flow: ● The email is composed and sent ● The sending mail server will add DKIM ● The email is sent to the recipient's server ● Validation tests begin, checking DKIM, SPF, and DMARC policies ● The email either passes, is quarantined, or is blocked/deleted ● If the email passes, it goes through the recipient's user filters and inbox rules

The Costly Mistakes of DIY: Why Small Business Owners Should Invest in Professionals

11 Jan, 2024

Running a small business is a challenging task. It requires dedication, hard work, and juggling multiple responsibilities. Often, small business owners try to cut costs by taking on tasks themselves, even if they are better off calling a professional. While the intention may be to save money, the reality is that DIY can lead to costly mistakes and legal pitfalls. Let's explore the common mistakes small business owners make when they opt for a do-it-yourself approach and why investing in professionals like lawyers, accountants, and general contractors is crucial for long-term success. The Myth of Saving Money Many small business owners believe that handling tasks themselves will save them money in the long run. However, this is often a misconception. While it may seem cost-effective initially, the lack of expertise and knowledge in critical areas can lead to costly mistakes that can ultimately hinder the growth and profitability of a business. The Value of Professional Services Professional services, such as lawyers, accountants, advisors, and general contractors, bring expertise, experience, and a deep understanding of industry regulations. They can provide valuable guidance, prevent legal issues, and help small business owners make informed decisions that align with their long-term goals. Most of the time, business owners don't consult with their advisors because they are wary of spending money on bills from their advisors on top of other expenses. The phrase "You can pay me now, or really pay me later" comes into play in these situations. Business owners should not be afraid to discuss money and bills from professionals with their advisors, and they should properly compensate advisors for their time. Complaining about spending a few thousand dollars to review a $20,000,000 contract can cost hundreds of thousands due to difficult payment and dispute resolution terms. Protecting Your Intellectual Property Intellectual property (IP) is a valuable asset for any business. Failing to protect it can lead to brand confusion, loss of revenue, and legal battles. Trademarks, copyrights, and patents should be filed appropriately and protected to ensure exclusive rights to your brand name, logo, or product design. How Professionals Can Help Lawyers specializing in intellectual property can guide small business owners through filing the necessary documents and paying the required fees. They can conduct an IP audit to identify and protect essential assets, develop IP protection strategies, and enforce IP rights if violations occur.

What Business Owners Can Learn From Al Pacino’s Locker Room Speech in “Any Given Sunday”

09 Oct, 2023

In the 1999 film “Any Given Sunday,” directed by Oliver Stone, Al Pacino delivers a powerful and memorable locker room speech that has resonated with me for years. The speech, delivered by Pacino’s character, Tony D’Amato, before a crucial football game, encapsulates the essence of the film and the themes it explores. While the speech is specifically about football, its underlying message can be applied to various aspects of life, including business. The idea of fighting for inches, continuously improving, and eliminating mistakes is a powerful metaphor for the importance of perseverance and adaptability in business. It highlights the value of small victories, incremental progress, and the relentless pursuit of excellence. For business owners, the speech serves as a reminder to focus on the details and the small wins that can accumulate over time. Just as a football team must fight for every inch on the field, a successful business must be diligent in managing its resources and seize every opportunity for growth. It emphasizes the importance of building a team that shares the same values and is committed to continuous improvement. Think of it in terms of all the inches and seconds around us in business and how $200 here and $50 there adds up. The whole concept of continuous improvement, eliminating mistakes, and fighting to get better is what I believe Oliver Stone intended when he wrote it. I love it as much today and as when I first saw it and the metaphor of getting into business and being profitable. You can read the transcript here . Or watch it here: