The following contribution was penned by Exigy Director Francois Grech
It is no exaggeration to say that AI is one of the most trending topics of the past year. Many have promised that it offers revolutionary change. In reality, many Maltese businesses – especially small and medium ones, might be finding it intimidating to make the leap likely due to the buzzwords and hype surrounding the topic
The good news is that AI most certainly has a place in many business strategies, regardless of size, much like past technologies such as email, e-commerce and cloud computing. The key should be to focus on practical applications that align with your business needs and budget.
AI vs. Automation: A common misconception
Before diving into AI, it’s important to distinguish it from automation. While automation focuses on streamlining repetitive tasks like invoice processing or data entry, AI goes further by analysing data and making decisions, such as responding to customer queries through chatbots or predicting sales trends. This distinction is crucial for Maltese businesses to determine which technology aligns best with their needs.
How AI can transform Maltese businesses
AI is by no means an all-or-nothing commitment; it is a tool that is adaptable for many different problems. Let’s break down how AI can benefit businesses of any size and budget.
- Customer service
One such option is adopting AI to improve on existing customer service automation.
For smaller businesses, AI tools like chatbots offer an affordable way to handle routine inquiries, freeing staff to address more complex issues. Larger enterprises benefit from AI’s scalability, managing thousands of interactions at once to boost response times and enhance customer satisfaction.
- Marketing and sales
Since analysing customer data is often a very time-consuming task, AI also has a strong use case for improving both marketing and sales efforts.
AI can enhance marketing and sales through personalized promotions based on customer purchase histories and preferences, helping retailers target offers more effectively. Additionally, AI-powered analytics can forecast sales trends, allowing retail businesses to predict demand and manage inventory efficiently, minimizing waste and missed opportunities.
AI tools for this are not necessarily the flashy, expensive software, platforms like Google Analytics and Mailchimp are known to deliver AI-driven insights that any size of company has the capacity to utilise.
- Streamlining operations
Ensuring operations are functioning at their best has always been important for businesses in any industry, and AI has several ways to save time and reduce costs.
AI supports businesses by improving **inventory management**, using algorithms to predict demand and maintain optimal stock levels, helping small retailers and restaurants avoid losses from overstock or shortages. Additionally, **process automation** through AI-powered tools like Robotic Process Automation (RPA) streamlines repetitive tasks such as order processing and shipment tracking, allowing staff to focus on more strategic activities.
- Enhancing financial management
AI tools can also impact financial tasks, making them faster and less prone to errors. Platforms Microsoft Dynamics 365 Business Central can automatically categorize transactions, reconcile accounts, and generate financial reports.
Breaking down barriers to AI adoption
Despite these benefits, many businesses hesitate to adopt AI due to perceived complexity or cost. However, the reality is that AI has become more accessible than ever:
- Cloud-based AI: Many AI tools are available as cloud services, which means businesses don’t need expensive infrastructure to use them. They can simply pay for what they need.
- Scalable solutions: AI tools can grow with your business. Start small—like using an AI chatbot or analytics tool—and expand as you see results.
- Affordable platforms: Many popular tools, like Microsoft Power BI, already include AI features that businesses can use at no extra cost.
Start small and focus on people
To successfully adopt AI, businesses should take a focused and gradual approach:
- Pick specific goals: Don’t try to transform everything at once. Choose one or two areas where AI can have the biggest impact, such as improving customer service or reducing manual work in accounting.
- Involve your team: Show employees how AI can make their work easier and more productive. For instance, an AI-powered scheduling tool can save hours of time spent on coordination.
- Measure success: Track the results of AI adoption to ensure it delivers value. For example, measure how much time a chatbot saves or how much your inventory costs drop after using AI demand forecasting.
AI isn’t just for tech giants or big budgets. It’s a tool that can help businesses of any size become more efficient, competitive, and resilient. The future of AI in Malta is bright, but it’s up to each business to cut through the buzzwords and unlock its true potential.
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