SMBs Face Challenges in Implementing AI Tech
Industry analysts and consultants are calling the next phase of AI, which includes generative AI, a game-changer for businesses. In a recent Accenture report, the firm said AI is quickly becoming a key component to a company’s digital core — sharpening its competitive edge.
But for e-commerce SMBs, implementation poses some significant challenges.
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Mikel Lindsaar, chief executive officer of StoreConnect, said the prevalent challenge facing SMBs “lies in the lack of connectivity among their systems, resulting in a fragmented data landscape. SMBs are faced with the daunting task of establishing connections between multiple systems, a time-consuming endeavor that proves arduous for businesses with limited resources.”
Lindsaar said in a statement that there are other challenges for SMBs eyeing AI implementation, which includes finding and retaining qualified AI professionals, change management issues around workflow and employee acceptance, and data quality and availability, among others.
Regarding data, Lindsaar said AI, “as it exists today primarily operates on machine learning principles, rather than true intelligence. It functions by predicting responses based on the data it has been trained on. However, if flawed or incomplete data is fed into the system, it will generate inaccurate predictions.”
For SMBs, which Lindsaar said “are already burdened with numerous disparate apps,” they will “find it nearly impossible to integrate accurate and comprehensive data into AI systems.” For its part, Lindsaar’s company offers a solution via technology that consolidates all data into a single enterprise platform.
Lindsaar said “by organizing their data within a unified platform, they can leverage the AI capabilities embedded in enterprise-level solutions. Enterprise platforms provide a centralized hub where all data is consolidated, enabling small businesses to benefit from sophisticated AI algorithms despite their limited dataset.”
For SMBs in the specialty apparel segment, panelists in a recent WWD and Sourcing Journal roundtable concluded that investing in AI and leveraging data can help merchants make better-informed merchandising decisions. Moreover, AI and data technology can be used to get a better understanding of consumer behavior — especially when viewed through different demographic cohorts.
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