Why Small Businesses Need AI: Key Benefits Revealed (Part I)

Now that we understand that AI is a help and not a hindrance, it is safe to say that AI offers a variety of benefits to small businesses. Whether its help with marketing, building a better connection with customers, or creating campaigns based on customer data, AI has proven to be a major factor in helping a brand grow.  There are a plethora of other benefits that AI has to offer. One might ask, "what else can AI do to make running a small business easier?" Let's take a look at what AI has to offer to develop a small successful business. 

Virtual Influencers (VIs) - A New Age of Social Media

In this new age of technology and social media, a new type of influencer has become extremely popular. Virtual Influencers (VIs) are virtual or digital personalities that have a social media following, connect with their followers, and interact with the world from a first-person perspective (Nguyen, 2023). VIs are made by 3D artists through the use of CGI (computer generated imagery), motion-capture technology, and AI tools. Despite the first official VI emerging in 1996, they have become increasingly popular in more recent years. (Nguyen, 2023). 3D artists can make VIs act, sound, and even look however they want them to, and their personalities are typically made to cater to a specific target audience. There are three types of VIs which are non-humans, animated humans, and life-like CGI humans that all interact with their followers in different ways. 

AI is utilized to successfully attract your target audience to your brand. Before they're created, AI experts pinpoint their target audience’s demographics and psychographics using social listening tools (Looi and Kahlor, 2024). Then, the observations and data found by AI experts are factored into the VI’s appearance using computer graphics. Afterwards, these findings also "inform the VI’s persona and backstory, which are generated by scriptwriters" (Looi and Kahlor, 2024). As a result, since VIs’ content is created through the use of AI ), "individuals may perceive VIs as more objective and more competent in performing complex and precise tasks than are HIs"(Looi and Kahlor, 2024). Additionally, thanks to VIs being made through AI, VIs have been found to have more Instagram posts that possess greater emotional intensity and with positive words than human influencers (Looi and Kahlor, 2024). 

A more well-known example of a VI is Candy made by Prada. In 2021, Prada revealed their first virtual model and influencer. Named after their perfume line, Candy was announced to relaunch the Prada Candy fragrance in their ReThink Reality campaign (Hiort, 2021). Prada incorporated the use of Candy "to stimulate digital interaction with young consumers as well as catalyze exploration into the future of virtual influence" (Hiort, 2021). Candy is further humanized and properly used seen using her signature line through the use of pictures taken and edited by a professional photographer and videos created by a filmmaker. Upon first looking, Candy is normally mistaken for a real-life model. However, after noticing her purple "magnetic" eyes, it is easy to tell that Candy is simply a human replica. 

Prada released this statement as a poetic way of describing the existence of Candy. In a way, the statement is seemingly saying that Candy is an invitation to combine reality with the metaverse. Some people might see the statement as Prada's way of trying to persuade consumers to accept VIs.

Content Curation and Voice Search

Similar to how AI is used to created VI for content, AI is utilized in two important ways, content curation and voice search. By definition, content curation refers to the process of selecting and distributing relevant, high-quality content and information regarding a particular topic in order to engage with and inform your target audience (NYTimes, 1). Similarly to content creation, content curation can be generated using machine learning and AI (Nair and Gupta, 2021). Essentially, content creation involves collecting, organizing, and sharing information and content on a specific topic that could be valued by your selected target audience. By using algorithms, you can gather data on the questions your audience needs answered, the content they should read, and their concerns regarding your business (Nair and Gupta, 2021). Some examples of content creation and curation tools are, but are not limited to, Wordsmith, Word AI, TubeBuddy and Articoolo.

Voice search is a technology that is utilized by virtually most phone and home owners. In the last two decades, society has seen the introduce of several major voice assistants that will someday account for 30% of general online searches (Nair and Gupta, 2021). The benefits that voice search technology offers are a boost in both traffic and purchase intent. This is the result of This is because of the  increase in voice search traffic driven by virtual personal assistants in recent years. To further examine, we will look at two examples of popular voice search assistants and their uses. 

Siri

Most if not all Apple users are well acquainted with Siri and the signature phrase, "Hey, Siri." Introduced in 2011 as the key feature of the iPhone 4S, Siri was Apple's first ever voice assistant that was promoted to be your "personal iPhone assistant." Siri has a variety of uses such as answering questions, controlling devices in your home (if you own Apple-based products), playing music, adding reminders, scheduling, and whatever else you can think of. In more recent times, you can Siri has integrated with ChatGPT into its arsenal. Without having to open the app (after the first time using the feature) you can tell Siri to ask ChatGPT a specific question that Siri might not be capable of answering. 

Alexa

As a new competitor against Siri, Jeff Bezos pitched the idea of Alexa to Amazon's stakeholders in 2011 and later revealed its existence alongside the Amazon Echo in 2014. Similar to Siri, Alexa can be used to answer general questions, play music, add reminders, and schedule things. However, since Alexa is a product of Amazon, it can also be used to order items, control Amazon smart devices, and even create routines for you to follow as you like. Alexa was pitched to make your life easier and increase productivity. In recent history, Alexa is compatible with Amazon smart devices outside of the Echo such as TVs, speakers, displays, thermostats, and more. 

Machine Learning - The Subfield of AI

Another benefit of AI that is extremely beneficial is machine learning. Machine learning refers to a “computational strategy that automatically determines (i.e., learns) methods and parameters to reach an optimal solution to a problem rather than being programmed by a human to deliver a fixed solution” (Mariana et al, 39). Machine learning is beneficial across industries and can help develop new ideas and strategies. For example, in the field of psychology, machine learning is used to develop methodologies and theories that are have the ability to move away from explanatory theories and models to more predictive ones (Mariana et al, 39). As aforementioned, in the field of marketing, its utilization in marketing activities such as campaign or research, has shown "improvements in forecasting models, therefore assisting marketers with decision making" (Mariana et al, 39).

    CafeX

A more specific example of a small business that progressed through the use of AI is Cafe X. Based in San Francisco, CafeX is a coffee bar ran completely by AI-powered robotic baristas. Additionally, the cafe had a large number of positive reviews complimenting the cafe for its artistic aesthetic, short wait times, and good quality food and coffee. Despite the use of AI, most customers have said that the robotic baristas are friendly and the coffee bar was a quick and convenient way to enjoy coffee. Although it is temporarily closed, Cafe X definitely has the potential to revolutionize the coffee and food industry as well.

AI's Use for a New Small Business

After analyzing AI and its various benefits, it is apparent that AI has many uses outside the scope of marketing. While most small businesses might not be able to incorporate voice search, other uses such as machine learning, content curation, and VIs can definitely be used through the use of software and specialists. Please look out for my next blog post to learn about the next AI tool that could potentially lead your business to success!

References

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ChatGPT. (2024). ChatGPT iOS app - Siri and Shortcuts | OpenAI Help Center. Openai.com. https://help.openai.com/en/articles/7993358-chatgpt-ios-app-siri-and-shortcuts

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Hiort, A. (2021, November 8). Prada Creates Virtual Muse Named Candy. Www.virtualhumans.org. https://www.virtualhumans.org/article/prada-creates-first-virtual-muse-candy

Looi, J., & Kahlor, L. A. (2024). Artificial Intelligence in Influencer Marketing: A Mixed-Method Comparison of Human and Virtual Influencers on Instagram. Journal of Interactive Advertising, 1–20. https://doi.org/10.1080/15252019.2024.2313721

Mariani, M. M., Vega, R. P., & Wirtz, J. (2021). AI in marketing, consumer research and psychology: A systematic literature review and research agenda. Psychology & Marketing, 39(4). https://doi.org/10.1002/mar.21619

Nair, K., & Gupta, R. (2021). Application of AI technology in modern digital marketing environment. World Journal of Entrepreneurship, Management and Sustainable Development, 17(3), 318–328. https://doi.org/10.1108/wjemsd-08-2020-0099

Nguyen, M. (2023, September 19). Virtual influencers: meet the AI-generated figures posing as your new online friends – as they try to sell you stuff. The Conversation. https://theconversation.com/virtual-influencers-meet-the-ai-generated-figures-posing-as-your-new-online-friends-as-they-try-to-sell-you-stuff-212001

NYTimes Licensing. (n.d.). What Is Content Curation? NYTLicensing. https://nytlicensing.com/latest/methods/what-content-curation/