AI's true power lies in its "Intelligence", and SMEs can leverage their own data

These days, the term "AI" is all-pervasive, from the Boardroom to the playground, which coincides with the release of a large variety of Data and Analytics platforms and AI-adjacent applications.

Everything is AI. Indeed much has been written, by many more qualified than me, to state that AI represents both the end of civilization, and the start of a new tech revolution.

What seems to be true right now is that AI clearly has potential, but it's still in many cases a solution trying to find a problem.

So if you are an SME, you are bound to be confused about whether this is a unique opportunity you must grab with both hands, or if it's a lot of expensive hot air and arguably, a distraction from your core purpose.

You are not alone

If you are an SME feeling worried, firstly, know that you are not alone.

Stock markets, Tech companies, Leaders of Organisations both large and small are all trying to separate the hype from the reality.

According to HMRC data from 2023, 1.36m Businesses have between 2 and 200 employees, amounting to 12.5m jobs from a working population of approximately 35m and turnover of some £1.9bn. Many, if not most of these, have similar concerns.

As a data professional too, I read a variety of blogs, articles and sales pitches all the time and new tools are constantly emerging offering increased levels of intelligence or "killer" game-changing features. It is impossible to keep track and experiment with them all, but many have a short life and sometimes it's better to stand and watch and let the market play out.

So, my immediate advice is don't be the magpie distracted by shiny objects. The landscape is evolving but real solutions are emerging slowly - you have time to position yourself and benefit from the best new products as the new standards emerge.

Taking control Pt 1 - Things AI does not know

AI knows about Businesses - but it does not know much about your Business.

AI knows what customers are - but it does not know about your customers and your relationship to them.

AI knows about people - but it does not know about your Team and the role they play in your Organisation

Crucially, AI knows about all kinds of data - but it does not know about your data.

So all Organisations, especially SME's have the raw ingredients already - the data points and human intuition which track the ebbs and flows of your Organisation and it's related stakeholders.

Taking control Pt 2 - Powerful tools (for free)

One thing AI has done for sure is spawn an array of tools, but interestingly there are some clear "old gold" platforms which persist and retain value.

• Microsoft is, of course, a huge player in both small and large Enterprise. It is a running joke that "Excel is dead" and the reality is that very large and important processes are underpinned by Excel and I foresee this being the case for a long time. It's cheap, flexible and very accessible to all business users.

• Power Query is an incredible tool embedded (some would say hidden) within Excel - so essentially, is free. It really is a great tool, with a simple and clear UI for regular users and advanced users can really push things with "M" code.

• Power BI also offers the same Power Query functionality and for regular users a relatively easy drag and drop appeal which can take you so far in delivering attractive and insightful visuals. It offers connectivity to a variety of sources and the Desktop version is free. Life gets more complicated for bigger data, more complex calculations (via the DAX language) and for distributing content more widely but most people can get the basics done.

• Postgres is an open source (=free) relational database which is great for retaining say, transactional records and then performing potentially complex queries on historical data sets to derive insights.

• Python is undoubtedly a bigger learning curve for regular users but as "everyone's second favourite language", it offers a great array of tools, including data analytics (pandas/polars libraries) and visualisations (matplotlib/plotly) without having to become a software developer.

  Further, Microsoft recently added Python in Excel, which has helped to try and bridge part of the gap, at least helping to move the interface part into a more familiar environment. Nevertheless, as open source software - it's another free option.

  Python also opens up the world of machine learning as well. With relatively little additional effort, you can perform powerful cluster analysis (e.g. grouping customers into "types") and regression analysis (logistic i.e. predicting what type of customer someone will be based on similar demographic features; linear i.e. estimating a value using the similar features of other historical values).

• Similarly, R language is similar to Python but offers even more tools for statistics (= more maths) and very powerful visualisation options via the ggplot2 library. Again R is open source software, with it's own interface, so is free to use, but there is a learning curve.

  
  

That is a very powerful toolkit, essentially for free (aside from a Microsoft licence), which can take most Organisations a long way.

These days, it's also relatively easy to learn about these tools, or at least get some tips and tricks from content on YouTube or other platforms, even LinkedIn if you follow the right people.

Making the most of the data and the tools

Whilst SME's have the ability to take control, there is a commercial imperative to find and retain clients and manage the day-to-day.

As noted, smaller Organisations lack the scale to employ people with exclusive data skills - they often double-hat with other responsibilities or are just under pressure with operational duties.

This is where data consulting services come into play, offering expert advice and guidance to help businesses maximize their efficiency and effectiveness.

As a start-up with a vision to support companies without large enterprise budgets, Clarity Data Consulting offers a range of services to meet the specific needs of each client.

For relatively little cost, you can unlock real value which can add to your bottom line:

• Data extraction/integration (Power Query, Python)

• Data cleaning/transformation (Excel, Power Query)

• Data modelling & analysis (DAX, SQL)

• Visualization & Reporting (Power BI, Excel)

• Automation (Python, Power Query)

• Potentially even predictive insights (Machine Learning)

Summary

AI is powerful. AI has potential.

Right now, you can still make a difference by leveraging the tools you have at your disposal and, with a little help, you can unlock value for your Business.