AI can help small businesses, but not every shop needs costly software, says IT professional

The use of artificial intelligence (AI) is growing fast. Large companies and start-ups are already benefiting from it. The question now is whether AI can also become an effective tool for growth among the country's small businesses, and whether it can ease their everyday problems.

Markets in cities such as Mumbai, Pune and Nagpur have large numbers of grocery stores, clothing shops, restaurants, coaching centres and small manufacturing units. The strength of these businesses is experience, hard work and the trust built with customers. But sales, stock, accounts, promotion and customer service all fall to the same owners. AI can be a useful assistant here. If some routine tasks become easier, owners can focus more on their customers and on growing the business.

Large companies have separate teams for marketing, finance and customer service. In small businesses, one or two people often handle all of this. For instance, a coaching centre is repeatedly asked about fees, class timings, the syllabus and the admission process. An AI-based chatbot can answer such common questions and log enquiries, which can save staff time. However, human help will still be needed to confirm admissions and in special cases.

The scope for AI differs from business to business. In a grocery store, sales and stock data can show which items sell more, and make it easier to plan reorders. In clothing, purchases can be better planned by looking at past sales records and demand that shifts with the season. In a restaurant, AI can help prepare menu descriptions, social media posts and replies to customers' common questions. Coaching centres can use it to organise admission enquiries and draft routine messages. In a small manufacturing unit, digital tools can help manage orders, available stock and delivery information.

According to Rohit Kadu, a technical architect and IT professional, the choice of technology should take into account the business's actual need and its budget. If a grocer has difficulty keeping track of sales and stock, ordinary billing and inventory software may be enough. There is no need to buy an expensive AI solution for it. On the other hand, if a training institute receives many enquiries every day, an AI-based assistant can answer common questions, sort enquiries into categories and pass the necessary information to staff.

It is also important to understand that not every automation tool is AI. Some software runs on fixed rules, whereas AI tools can do things such as generating content, understanding language and analysing data. Before adopting any solution, therefore, its usefulness, cost and fit with the existing system should be considered.

With the help of AI, small businesses can create promotional material and product descriptions, organise answers to customers' common questions and analyse sales data. This can reduce the time spent on some routine tasks. But AI results are not always correct. Sales forecasts can be wrong, and the information it prepares can contain errors. Results should therefore be checked before important decisions are taken. Protecting customers' personal information, payment details and confidential business data also matters. Before using any digital service, one should understand its privacy policy and its terms on the use of data.

Small businesses do not need to change their entire way of working to adopt AI. They can start with one task, such as creating promotional material, answering customers' common questions or understanding sales figures. They can then see how much time the tool saved, how much it cost and how much the work improved. If a solution brings real benefit, its use can be expanded. Where ordinary digital software will do, buying costly AI tools unnecessarily should be avoided.

The greatest strength of small businesses is their experience, their understanding of the local market and their relationship of trust with customers. AI does not replace these strengths but can become a tool to reinforce them. For small businesses, the real value of AI lies not in adopting the technology but in using the right technology for the right need, economically.