Artificial Intelligence (AI) is old news; awareness of AI among the masses is new.

Some people remember IBM using AI in its “Deep Blue” chess-playing computer, which defeated world champion Gary Kasparov in 1997, showing AI’s potential. Still, others go back to the 1956 Dartmouth Conference, which is often considered the unofficial birth of AI.

One step further back on the calendar brings us to 1950 when Alan Turing introduced the “Turing Test,” a criterion for machine intelligence based on indistinguishability from human responses. That’s three-quarters of a century of artificial intelligence development.

Despite AI’s long history, business owners have been skeptical of using new AI tools. However, they likely use them in their daily lives even if they don’t realize it — autocorrect, predictive text, travel websites, email spam filters, their Netflix queue, the maps and facial recognition on their phones, bank fraud detection, self-driving cars, and digital voice assistants are all tools driven by artificial intelligence.

Why you should care about AI now

Businesses that wait to use AI once it becomes so commonplace it’s not even recognized (like autocorrect or spam filters) will be disadvantaged. Companies unwilling to learn how to partner with AI tools will struggle to grow relative to the competition that embraces the evolution from personal AI use to corporate use.

Adopting AI and AI tools by businesses will mean the difference between growth and waving to your competition as they pass by you, possibly with your former customers.

The tools that will propel businesses to new levels of efficiency are classified as small language models (SLMs). Think of an SLM as software focused on your industry, knows what you would want it to do, and does what you would like it to as if you waved a magic wand. (That’s an obvious exaggeration, given that onboarding any new technology is, admittedly, initially disruptive. Still, some of the SLMs out there are not far from that description.)

SLMs are targeted versions of their large language model (LLM) counterparts. ChatGPT, Claude, Perplexity, Gemini AI, and Meta AI are examples of LLMs. SLMs are built on the foundation of LLMs; LLMs are useful but are still just a version of predictive text — for now. The SLMs available for companies in your industry are designed to collaborate actively with your team because they are trained on smaller, more specific datasets.

SLMs connect with other systems and can, for example, pull information from a note-taking device, import it to your CRM, and trigger email follow-up and scheduling. SLMs interact with various company software to understand and execute complex tasks by translating human intentions into action.

Think along the lines of an intelligent personal assistant, robotic controls, customer service chatbots, and analyzing X-rays and MRI imaging. A small action model, or SLM, is an AI tool that can follow instructions and complete tasks.

SLMs: A business co-pilot, not a replacement

Some worry AI will replace human workers, but AI is more of a powerful partner. Think of AI as your co-pilot, handling repetitive tasks so you can focus on higher-level work.

Take Paul, a lawyer in Boston who uses AI to prep for meetings. Paul’s firm uses the Microsoft 365 software suite (Outlook, Teams, Excel, PowerPoint, OneDrive, SharePoint, etc.). Microsoft’s Copilot helps employees by summarizing information, compiling reports, and automating responses, allowing them to tackle creative and critical tasks. AI speeds things up; it doesn’t cut humans out.

Instead of spending hours compiling data, AI does it for Paul, leaving him free to concentrate on his clients. Using AI like this doesn’t cause layoffs; it empowers workers to be more productive.

Don’t think of AI and SLMs as something that will replace your employees; they won’t. However, it will allow you to expand your company’s revenue without increasing headcount or associated costs to the same degree as you previously would. That is the definition of scaling!

In short, SLMs can help you work faster, smarter, and more personally—whether you’re reducing customer wait times or speeding up your team’s workflow. This approach strengthens customer loyalty, boosts efficiency, and gives your business a competitive edge.

The ROI of AI: Why it’s worth the investment

Using AI might feel like a giant leap to the uninitiated, but those who adopt the technology will see a return on investment. For many companies, it’s an investment in efficiency, customer satisfaction, and future growth. Here’s how:

• Boosting Productivity: SLMs can take on repetitive tasks, freeing employees to focus on what matters. George, an insurance agency owner, uses AI to automate compliance checks, allowing his team to spend time on higher-value tasks. This improves accuracy and reduces errors.
• Personalization: SLMs can sort through massive customer data to offer tailored experiences. For example, banks use AI to give lenders a full view of each client’s history, allowing customized advice.
• Scalability: SLMs let companies grow without massively increasing costs by automating parts of the workload, allowing businesses to expand faster and more efficiently.

AI is more accessible than ever, especially for small businesses. Tools are becoming affordable and more accessible to implement, allowing smaller companies to compete with larger ones.

AI is evolving fast, and businesses that delay will get left behind. If you are unsure how to begin, start small, experiment, and scale as you see results.

Ask your favorite large language model (my current favorite is OpenAI’s “Strawberry”) and prompt, “What are some AI tools that companies in my industry use to become more efficient or improve customer service?” Then, contact the vendors, request demos, and find out if you like what you see.

 

This article first appeared in the Berkshire Eagle on November 22, 2024.