Unlocking the Power of Generative AI for Business

The potential of generative AI continues to dominate conversations, offering transformative potential for businesses, particularly SMEs.  

This technology isn’t just a tool for large corporations. SMEs can use it to drive customer service improvements, increase productivity, and optimise operations. To make this a reality, however, we need a clear focus on three key areas: collaboration between academia and business, targeted investment, and improving data and technological literacy. 

At its core, generative AI is about interpreting data to deliver actionable outcomes. Imagine a retailer using AI to help a customer select the perfect gift based on preferences, hobbies, and even social media activity. Or an SME using AI to categorise and respond to customer complaints efficiently, enabling staff to focus on more complex issues. These examples are not distant aspirations but achievable outcomes for businesses willing to embrace the potential of AI. 

Collaboration between academia and business is critical to unlocking the potential of generative AI. Universities are at the forefront of AI research, developing applications that could directly benefit SMEs. Yet the gap between innovation in academia and its practical application in businesses remains significant. Businesses need to engage with universities to tap into this expertise. From bespoke AI tools to ready-to-use applications, academia can provide tailored solutions that are often affordable for SMEs. By fostering partnerships, we can create a symbiotic relationship where research drives practical business benefits, and businesses, in turn, offer real-world challenges that further innovation. 

The second key to success lies in investment. For SMEs, navigating the financial aspects of AI adoption can be daunting. AI implementation doesn’t require huge budgets for elaborate systems; sometimes, small, targeted applications can deliver significant benefits. Governments have a role to play here. Incentives for adopting AI applications—not just technology itself—could re-energise the SME sector. For instance, subsidies or tax breaks for implementing small-scale AI solutions in customer service or supply chain management could encourage businesses to take their first steps into automation. This is where the focus should shift: making AI accessible and affordable for all, not just a select few. 

For many SMEs, the barrier to embracing AI isn’t just financial but educational. The perception that AI is complex or “too techy” often stops businesses from exploring its benefits. But many applications are surprisingly simple to understand and deploy. Improving literacy around AI is essential. This doesn’t mean turning every business leader into a tech expert but equipping them with enough knowledge to identify opportunities. Government-backed initiatives and industry groups could play a crucial role by offering workshops, resources, and support tailored to SMEs. 

Generative AI has the potential to bring measurable benefits to businesses. From streamlining customer service processes to increasing operational efficiency, the results are tangible. For example, SMEs adopting AI in complaint management have reported that up to 30% of complaints can be resolved automatically. This not only saves time and resources but also enhances customer satisfaction by providing swift responses. Moreover, the productivity gains from AI integration can free up staff to focus on strategic initiatives, driving growth and innovation. By starting small—selecting one or two use cases proportionate to their size and budget—SMEs can see immediate benefits that build confidence in further investment. 

Embracing generative AI is as much about mindset as it is about technology. Innovation requires a cultural shift within organisations, one that values experimentation and learning. Sharing best practices and success stories will be vital in demonstrating AI’s potential to hesitant adopters. By focusing on collaboration, investment, and education, we can ensure that businesses—especially SMEs—are well-equipped to harness the power of generative AI in 2025. This isn’t just about technology; it’s about creating a competitive, innovative, and resilient business environment for the future.