Small businesses must weigh a number of risks when they add new technology to their operations. Tech tools can add to expenses, increase cybersecurity vulnerabilities, and trigger enhanced compliance duties, all before they can deliver on their efficiency and productivity promises.

When the technology in question is AI, the risks increase. Unleash AI as your first line of customer service, for example, and you risk exposing your customers to unpredictable hallucinations.

Still, AI’s potential and the rapid rate at which it is spreading across the business landscape is making it increasingly difficult for small businesses to avoid it. To stay competitive, small businesses must find ways to balance the risks with the advantages that AI can bring to their operations. In pursuing that course, the following are some factors that can help small businesses to position themselves for success.

Stay Focused On AI’s Main Strengths

The hype around AI suggests that it can do virtually anything, from inbox management and customer support to risk detection and autonomous procurement. The reality, however, is that AI will function more reliably, especially in the small business context, if it is deployed in ways that leverage its key strengths.

Small businesses should focus on integrating AI-driven tools in ways that increase efficiency, speed up data analysis, reduce costs, and improve the customer experience. When leveraged in those ways, AI can transform small businesses in ways that allow them to compete with bigger players in their markets.

For example, AI’s capacity for natural language querying can streamline the process of finding insights in data, giving small businesses the capacity for data analytics that is typically reserved for larger companies with in-house data analysts. With AI’s assistance, small business employees can simply ask AI-powered tools for the info they want – “Which of our products in the $50 to $100 range are performing best in our online marketplace?” – rather than developing the code or learning the complex formulas that would have been needed to answer that question in the past.

Empowering multilingual support is an example of how AI can be leveraged in customer service to reduce costs and improve business reach. Whether it is powering a simple translation tool or a custom-engineering platform branded to represent your business and integrate with your online platforms, AI can allow your business to serve a larger market without requiring additional hiring.

Be Prepared For Personnel Changes

Maximizing the impact of AI will most likely mean doing away with some positions currently filled by human employees. Small business leaders who are preparing to adopt AI need to prepare to navigate the transition.

In the short term, that could require letting people go. Most employees in today’s workforce know that displacement due to AI adoption is a possibility. In fact, recent stats show that 52 percent of employees fear AI will lead to a reduction in head count.

In the long-term, however, AI adoption could create new jobs for small businesses. As AI fuels growth, companies may need to expand their fulfillment or customer support teams. Small companies may also find themselves creating new positions designed to maximize the impact of AI-powered tools, such as data quality managers or creative strategists.

Don’t Totally Replace The Human Element

While AI can automate a wide range of business tasks, there will always be some functions that need the human component. As you move forward with adopting AI, make sure you are clear on what those areas are and take steps to protect them from complete automation.

For example, there will always be a need to have a human available for customer service and support, especially when the help needed is complicated. Don’t overvalue the speed that AI can bring to the process, especially when recent surveys show that 86 percent of consumers say excellent customer service depends more on empathy and a human connection than on speed.

Any function that involves relationship building will ‌always require a human component. B2B consulting, for example, will be a field in which AI tools will be better used to provide background support to human agents who are building and leveraging relationships. High-stakes sales, where the experience is paramount and negotiating skills play a central role, is another field where humans will most likely always take the lead role.

Positioning your business for success in the world of AI requires carefully considering AI’s strengths and deploying them in ways that enhance your unique strategy. Carefully consider where AI automation can better serve your employees and your market and use the efficiency gains it provides to maximize the human component in ways that are most appropriate for your business.