Utilization of Artificial Intelligence (AI) for Faster MSME Business Growth

Along with developments, AI technology continues to experience significant progress. Even so, there are still many MSME businesses that have not fully utilized the potential of AI, one of which is because of the notion that AI can only be utilized by certain industries, such as the creative and digital industries. However, this understanding is not correct.

According to Irzan Raditya, CEO & Co-Founder kata.ai, "Understanding AI as a tool only used in creative or digital industries is one of the myths that we often hear. Actually, AI can be used in various business sectors." Irzan said.

According to him, the utilization of AI can be widely used in various sectors. For example, in manufacturing for automation and operational efficiency, as well as in the retail business for personalization, marketing and sales optimization.

Benefits of Using AI for MSME Businesses

The use of AI technology by MSME businesses can provide various benefits and advantages, ranging from marketing benefits to increasing business productivity and efficiency which have an impact on income. Irzan shared his opinion regarding the benefits of using AI technology in the MSME business.

"AI can help MSMEs in terms of marketing by beautifying sales images, making caption or compelling product descriptions, and even create marketing visual assets using Generative AI tools. AI can also help MSMEs in increasing business productivity and efficiency, which of course can have an impact on increasing income and profits," explained Irzan.

In addition, AI can assist MSMEs in increasing their operational efficiency and business productivity. "According to McKinsey research use Generative AI tools can increase the productivity of a division within an organization by 35-55%." Added Irzan.

By utilizing AI to automate work, the time and resources you have can be allocated to other, more strategic activities. Apart from what has been mentioned, AI technology can also help business people make the right business decisions and plan better business strategies.

Tips on Using AI to Maximize MSME Business Potential

AI technology can indeed be utilized by businesses from various sectors. However, users who cannot operate AI properly will certainly not achieve optimal business development results. Here are some tips for optimizing the use of AI delivered by Irzan Raditya.

Identify Potential Utilization of AI for Your Business

MSME business actors must see the needs and challenges of existing businesses. That way, they can see how AI can help meet those needs. AI can assist in various business functions, such as marketing, operational efficiency, data analysis and other functions. So, determine what your business needs most and look for the right AI solution that suits your business needs.

Ensure the Use of AI is in line with Business Goals

Not only in line, the use of AI technology must support MSME business goals. In addition, it is important to involve all parties in the AI ​​integration process, including employees, customers and other stakeholders.

Start implementing AI on a small scale first

For MSMEs that are just starting to integrate AI into their business, it is more advisable to start using it on a small scale first. Such utilization is for example in the marketing function to write product descriptions, captions on social media or data analysis. After getting to know a lot about the use of AI, you can start exploring and implementing AI on a larger scale.

Use AI to Expand New Market Opportunities

AI can also assist MSMEs in identifying new market opportunities by analyzing market data and consumer trends. By gaining deeper insight into consumer needs and preferences, MSMEs can make the right strategic decisions.

Take AI Usage Measures

Measuring the success rate of using AI can be seen from operations, productivity, to business income. Also, evaluate feedback from customers and employees is also important to ensure that the use of AI has a positive impact, not only for certain parties but for all related parties.

The use of AI in the MSME business provides great benefits, but also raises data security risks that need attention. According to Irzan, by implementing appropriate security measures, MSMEs can minimize data security risks associated with using AI and maintain the integrity and confidentiality of their business information.

"This risk can be minimized by adopting good data security practices, such as the use of encryption, two-factor authentication, and strict data access policies." Close Irzan.