Where are the SMEs in Singapore’s AI story?

MANY businesses are eager to bring artificial intelligence (AI) into their operations to drive productivity, raise margins and build higher-value customer relationships. Yet the overwhelming hype around AI can intimidate organisations, leading to paralysis.

Some hesitate to take action on generative AI, for instance, due to the perceived complexity and uncertainty around the technology. Others struggle to identify use cases where it can provide tangible value. Without a clear purpose or goal, many find it difficult to justify hefty investments.

Even in companies that have started investing in AI, employees can be sceptical of the benefits.

In Salesforce’s recent AI Trust Quotient study, nearly half of employee respondents in Singapore say it is difficult to get what they want out of AI, while 70 per cent believe AI lacks the data needed to be useful.

The missing SMEs

Like their larger counterparts, small and medium-sized enterprises (SMEs) face rising inflation, escalating costs and trade disruptions. They are also susceptible to AI paralysis – probably more so than larger enterprises, with some challenges amplified.

SMEs have far fewer resources and may lack the ability to find use cases or implement AI in their operations. It’s probably not surprising, then, that SMEs are noticeably absent from the AI conversation in Singapore today.

While SMEs recognise AI as a top business trend, only a small fraction have incorporated it into their operations. Just 4 per cent of Singapore’s SMEs have used AI or machine learning, even though 95 per cent have adopted digital tools.

Yet, with AI, SMEs can enhance the customer experience, drive operational efficiency and grow their revenue. So how can they be helped to adopt AI?

Prioritise practical applications

First, with limited resources, SMEs need to ensure that any AI investment can generate a robust return on investment. This means prioritising practical use cases that add the most value, then expanding training and adding use cases as needed.

For example, SMEs can start by implementing AI in customer service. Generative AI assistants can help service teams get answers and data from disparate systems efficiently to resolve cases. This frees up time for staff to focus on delivering personalised customer experiences and generating revenue.

Imagine this: A customer calls the customer service hotline to check on the waterproof depth rating of their camera. The staff member prompts the generative AI assistant to determine the customer’s camera model and its waterproof depth rating based on the customer’s transaction history, and draft a response.

The customer also wants to know if their camera is suitable for a diving trip at Tioman Island. Based on the camera’s waterproof depth rating and the maximum diving depths at Tioman, the generative AI assistant might recommend buying a newer model with better waterproof features, or buying a separate waterproof cover for the camera.

By pulling together external and customer data to create recommendations for service agents to take action on, AI enhances their efficiency and creates opportunities for revenue generation through upselling and cross-selling.

When done right, AI can transform service functions, which are typically regarded as cost centres, into profit centres.

Reduce barriers with built-in solutions

SMEs that lack in-house AI expertise need built-in solutions that can be integrated into existing infrastructure. Such solutions are less complex and thus have a lower barrier to entry, allowing them to be deployed and scaled easily.

Generative AI assistants embedded in existing applications can provide insights and recommendations based on customer data; answer questions; generate content; and even automate actions.

This can help employees track sales leads, manage customer service cases and draft customer e-mails – freeing them up to focus on strategic work such as analysing market gaps and customer needs to develop new products or services.

Tap government support

SMEs in Singapore can also benefit from the government’s “leave no business behind” approach. The public sector has been collaborating with the private sector on ways to make AI accessible for SMEs.

One such collaboration is the Data + AI Boost SME Programme by the Infocomm Media Development Authority and Salesforce, which gives some 5,000 SMEs access to generative AI tools, workshops and consultations.

Similarly, building an AI-ready workforce is critical in fully harnessing AI’s potential – but this may be challenging for SMEs due to cost and time constraints. Employers can leverage upskilling initiatives like the TechSkills Accelerator programme to help employees learn more about and embrace AI.

Great AI begins with great data

Generative AI needs to be grounded in trusted and reliable data. Otherwise, the responses generated can be generic and of little use to the business.

Some 95 per cent of SMEs have already adopted digital tools, and might thus have the data they need for meaningful AI outcomes. The next step is to turn disconnected data into unified input, so AI can produce contextual, accurate, and useful outcomes.

Implementing AI is not an overnight task. SMEs need to take a thoughtful approach to ensure that their AI investments are aligned with their growth strategy and deliver a return on investment.

But when done right, AI can help SMEs build resilience and position themselves for growth and success amid an increasingly challenging business landscape.

The writer is senior vice-president and general manager of Salesforce Asean