AI-powered apps are related to lowered threat to enterprise throughout the pandemic

A brand new research has discovered that synthetic intelligence (AI) apps helped shield small and medium-sized companies in opposition to most of the dangers that emerged throughout the COVID-19 pandemic – but solely 1 / 4 of small companies presently use them.

The analysis, undertaken by Anglia Ruskin College (ARU) and revealed within the journal Data Methods Frontiers, surveyed 317 small and medium-sized companies based mostly in London. The research discovered the usage of AI-powered apps was related to a 3.1% lowered threat to enterprise throughout the pandemic.

The COVID-19 pandemic has created dangers for economies and enterprise operations, with prospects stopping, decreasing, or suspending purchases, thereby affecting provide chains and leading to difficulties in sourcing different suppliers.

Enterprise dangers had been outlined by a 60-point scale developed by the Worldwide Labor Group’s (ILO) that measures the pandemic’s affect on staffing, processes resembling working patterns, lowered earnings, and threats to partnerships.

AI software program utilized by companies embrace chatbots to permit swift interplay with prospects, apps that establish damaging faux opinions, and apps that use algorithms to enhance buyer concentrating on based mostly on their habits, social media actions and profiles, on-line actions, and previous transactions.

The research discovered the usage of AI apps to supply personalised purchasing solutions was related to 2% decrease enterprise dangers to earnings brought on by the COVID-19 pandemic. Using AI apps to focus on viewers on-line was related to 1.2% decrease total enterprise threat.

Nonetheless, the analysis revealed that solely 26% of small enterprises had been using AI purposes, significantly decrease than the 70.4% of medium-sized companies.

SMEs can put money into AI applied sciences to trace customers’ habits and supply suggestions, enhance buyer’s buying selections, search outcomes, media communication, commerce elevate gross sales, enhance organizational efficiency, and decrease prices.

AI can assist SMEs to adapt to unprecedented situations, which means they’ll leverage expertise to satisfy new forms of demand, transfer at velocity to pivot enterprise operations, increase effectivity and cut back their enterprise dangers.

We discovered that SMEs’ enterprise dangers brought on by the COVID-19 pandemic declined with the usage of AI purposes throughout a ten-item scale together with advertising, gross sales, communication, predictions, pricing and money movement, faux opinions, cybersecurity, recruitment, and authorized providers.

The outcomes proved true no matter enterprise dimension, turnover, and years of operation, indicating that AI purposes have helped SMEs to adapt to unprecedented situations throughout the COVID-19 pandemic.

It appears funding in AI apps may very well be a sensible transfer for the three quarters of small companies that don’t presently make the most of them.”

Professor Nick Drydakis, Lead Writer, Director of the Centre for Pluralist Economics at Anglia Ruskin College


Journal reference:

Drydakis, N., (2022) Synthetic Intelligence and Diminished SMEs’ Enterprise Dangers. A Dynamic Capabilities Evaluation Throughout the COVID-19 Pandemic. Data Methods Frontiers.

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