The Power of AI: Boosting Productivity in Small Businesses

Improving productivity with AI Tools

Generative AI is a groundbreaking technology that’s revolutionizing the way workers get their jobs done. New AI tools are hitting the market daily, giving workers the ability to automate mundane tasks and generate text, images, or models. For small businesses, this might mean using AI to quickly write a blog post, create a graphic for social media, or even expand customer service hours using chatbots. The potential for time saving is significant. In fact, one of the most exciting aspects of generative AI lies in its potential to free workers from repetitive and time-consuming tasks, so they can focus on more strategic and creative endeavors.

The basics of AI

So, first off, what is AI? AI tools are computer systems that can mimic human cognitive functions like learning and problem solving. Generative AI is a subcategory of AI that’s designed to autonomously generate content, such as text, images, or music. Using machine learning (ML) algorithms, these tools can create output that is similar in style and context to existing data.

Generative AI tools are “trained” by ingesting large data sets containing examples of the type of content they’re expected to generate. For example, a text generator might be trained using books, articles, or social media posts.

Generative AI can help automate routine tasks and process data quickly. However, it’s important to be aware of the limitations of AI productivity tools.

Quality issues: The quality and coherence of generated content can vary widely. It might not meet human standards for accuracy or creativity.
Perpetuating bias: Generative AI can perpetuate biases that were present in the training data, leading to biased content. This bias must be identified and mitigated. Addressing bias in training data and algorithms is also essential to ensure that generative AI tools don’t produce harmful or discriminatory content in the first place.
Privacy concerns: Users must be cautious when using generative AI tools with sensitive, proprietary, or personal data, as the tools may inadvertently generate content that violates privacy.

While generative AI can be a powerful tool that increases productivity, it shouldn’t be used for making critical decisions, particularly in industries such as healthcare, finance, or law, where human expertise is essential. It also can’t replace human creativity. AI productivity tools can support and enhance human productivity and creativity, not replace them.

When to use AI productivity apps

AI productivity apps are helpful for just about any size business, including small businesses. Workers can use AI for productivity to automate time-consuming, manual tasks, freeing them to spend time on more valuable activities. Here are several ways that the best AI productivity tools help businesses streamline operations.

Automation for repetitive tasks. AI solutions can automate mundane tasks such as data entry, document processing, and customer support. This automation gives more time to focus on strategic activities.
Expanded customer service. Chatbots and virtual assistants can handle customer inquiries and provide support day and night, improving customer service availability without the need for staff to work around the clock.
Data analysis. Businesses can gain valuable insights into customer behavior, market trends, and operational efficiencies by using AI algorithms to process and analyze large volumes of data quickly. Data-driven decision making can lead to more informed choices and better outcomes.
Supply chain optimization. AI can help optimize inventory management, improve demand forecasting, and reduce costs while ensuring products are available when needed.
HR and talent management. Recruiters can streamline the recruitment process by using AI productivity tools to quickly scan resumes for keywords and match resumes with job criteria, helping businesses find the right candidates faster. It can also assist in employee onboarding and training.
Marketing and sales strategy. Marketing and sales groups can use AI to analyze customer data quickly, identify the most effective marketing channels and strategies, and then precisely allocate resources. AI can also help with lead scoring and sales forecasting.
Workflow optimization. AI can analyze workflows and suggest improvements, helping businesses optimize their internal processes for increased efficiency.
Translation and communication. Facilitate communication with international customers or partners and break down language barriers with AI-powered translation tools.
Cost reduction. By automating tasks and optimizing processes, AI productivity apps can help businesses reduce operational costs and improve the bottom line.

So how does AI improve productivity?

Although AI productivity tools are relatively new technology, there are already several studies showing that they can positively affect productivity in numerous industries. These studies show that AI technologies can enhance productivity across industries and roles by automating tasks, improving decision making, and optimizing processes.

Study shows customer support agents increase productivity using AI

According to Generative AI at Work1, a preliminary study by the National Bureau of Economic Research from April 2023, “customer support agents using an AI tool to guide their conversations saw a nearly 14 percent increase in productivity.”

The researchers determined that agents using the AI tool increased the number of customer issues resolved per hour by 13.8 percent. Workers with the least experience improved productivity by 35 percent, resolving more issues per hour, while more experienced, top-performing workers were not impacted. This data suggests that AI could be an effective tool for onboarding. The study also uncovered additional benefits to using AI productivity apps, including more positive customer reviews, fewer escalations to managers, and decreased attrition among agents.

Developers complete tasks nearly 56 percent faster using AI

In The Impact of AI on Developer Productivity: Evidence from GitHub Copilot2, a study done in February 2023 by Sida Peng, et al, researchers examined the productivity effects of AI tools on software development. During the study, developers used GitHub Copilot, an AI programming assistant that provides relevant code and functions, to create an HTTP server in JavaScript as quickly as possible. A control group did not have access to the tool. Developers using GitHub Copilot completed the task 55.8 percent faster. Less experienced programmers, older programmers, and programmers working long hours achieved the greatest benefits from using the AI tool.

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Examples of where AI can increase productivity

Generative AI tools have the potential to significantly increase worker productivity by automating tasks, generating content, and assisting with decision making. Determining where and how to use AI productivity apps depends on what your workers need to do. Here are just a few examples of how the best AI tools for productivity can help your workers get more done.

Content generation. Writers and content creators can use generative AI to quickly produce articles, reports, and product descriptions, saving them a substantial amount of time.
Graphic design and modeling. Designers can use productivity AI tools like Microsoft Designer to generate designs, layouts, and visual content based on user input, streamlining the design process. In industries like architecture and product design, generative AI can also assist in creating 3D models and prototypes, reducing the time needed for design iterations.
Code generation. AI can assist developers by generating code snippets or even entire programs based on high-level descriptions or specific requirements, accelerating software development.
Medical diagnostics. Medical personnel can use AI to interpret medical images such as X-rays, CT scans, MRIs, and mammograms. Deep learning algorithms can help radiologists identify patterns and abnormalities in images, leading to more accurate diagnoses. For example, AI can help detect early signs of cancer, fractures, or neurological conditions.
Manufacturing and quality control. Workers can employ AI-powered robots and cameras to inspect products on assembly lines, detecting defects and ensuring high-quality production. With AI assistance, workers can operate with greater speed and accuracy.

These examples demonstrate the versatility of generative AI tools, where they can streamline processes, reduce manual effort, and improve productivity by automating tasks and providing valuable assistance to workers. To realize the full potential of AI in increasing productivity, businesses must carefully assess their specific needs and objectives, invest in the right technologies, and ensure that employees are trained to work with AI systems effectively. Employees should also be aware of ethical considerations, data privacy, and security issues when using AI for productivity.

How to integrate AI into your workflows

Using AI in your daily work can enhance productivity, efficiency, and decision making across various roles and industries. Here’s some guidance and a few productivity tips on how workers can effectively integrate AI into their daily work, including when to use AI and when not to.

Research AI basics. Before integrating AI into your daily activities, it’s essential to have a basic understanding of what AI is, including its capabilities and limitations. Familiarize yourself with common AI technologies such as machine learning and natural language processing.
Identify relevant use cases. Determine where AI can provide the most value in your job or industry. Look for tasks that are repetitive, data-driven, or require pattern recognition. Common use cases include data analysis, customer support automation, and predictive maintenance.
Select the right AI tools. Choose AI tools or platforms that align with your specific needs and skill level. Some AI tools are user-friendly and require minimal coding, while others may require more technical expertise. If you’re new to AI, choose a user-friendly tool.
Start with small projects. Begin by integrating AI into small, manageable projects. Starting small gives you the opportunity to learn without becoming overwhelmed. Gradually increase the size and complexity of your AI projects as you become more comfortable.
Collaborate with more experienced users. If you’re just getting started with AI, collaborate with colleagues or teams who have more AI expertise. Cross-functional collaboration can help ensure the successful implementation of AI in your workflows.

AI productivity tools can be helpful when used for repetitive tasks, data analysis, and pattern recognition. However, there are times when you shouldn’t use AI.

Lack of data. If you don’t have enough quality data to train AI models, then AI productivity tools may not be suitable for your task.
Tasks that require critical thinking. AI isn’t always the best for creative or critical thinking tasks that require human intuition, empathy, or artistic expression.
Highly sensitive or ethical decisions. Avoid using AI for decisions that have significant ethical implications, such as hiring or medical diagnoses, without careful human oversight. While AI can certainly help point you in the right direction, human discretion is needed to make sensitive decisions.
Scenarios that require transparency. In situations where transparency and accountability are crucial, AI models don’t have the functionality to explain their decisions, so they may not be appropriate.

Integrating AI into daily work involves careful consideration of its capabilities and limitations, selecting the right tools, and starting with manageable projects. Workers should use AI for tasks where it can provide tangible benefits while being cautious in situations that require human judgment, ethics, or creativity. Collaboration and continuous learning are key to successful AI integration.

Tips for using AI tools effectively

Adding AI into your daily tasks can boost productivity and eliminate the need to do time-consuming, repetitive tasks. But there’s a bit of a learning curve. One of the most challenging tasks when using AI tools is learning how to write effective prompts. Prompts are the input you give an AI tool to let it know what kind of text, images, or code you’re looking for. Writing good prompts is essential for getting the results you want from a language model like ChatGPT.

Here are some tips to help you write better AI prompts:

Be specific. Clearly state your question or request. Specify the format or structure you want the answer in.
Provide context. Give the AI model relevant information to work with, including any necessary background or constraints. Provide examples within your prompts to clarify your expectations.
Ask open-ended questions. If your question can be answered by a yes or no, rewrite it to encourage a more detailed response. You’ll get better results when you create prompts that require explanation or elaboration.
Test and iterate. Try asking the same question a couple of different ways. Review the generated output, and then adjust and refine your prompts based on the quality of the responses.

Writing good prompts is an iterative process. Experiment and adjust your approach to achieve the best results for your specific use case. Make sure to have a human review any AI-generated content for accuracy and appropriateness.

Take advantage of AI for productivity

We’ve only begun to see the impact that AI productivity tools will have on worker output. New apps and capabilities are hitting the market every day. Microsoft recently announced Microsoft 365 Copilot, which incorporates next-generation AI into Microsoft workplace productivity tools.

While they can’t replace human workers, AI tools can help alleviate the burden of time-consuming, repetitive tasks, increasing workers’ abilities to innovate and create. Start using AI tools today to boost productivity at your business.

Learn how to improve your productivity with Microsoft 365.

1.Erik Brynjolfsson, et al, “Measuring the Productivity Impact of Generative AI,” National Bureau of Economic Research, June, 2023, Measuring the Productivity Impact of Generative AI | NBER.

1.Sida Peng, et al, “The Impact of AI on Developer Productivity: Evidence from GitHub Copilot,” arXiv, February, 2023, https://arxiv.org/pdf/2302.06590.pdf.

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