A report published by ScaleFactor State of SMB Finance states that most SMBs i.e. Small and Medium Business retailers are not willing to implement AI or machine learning (ML) into their workflow.
Fremont, CA: A report published by ScaleFactor State of SMB Finance says that only 10 percent of retail businesses use Artificial Intelligence (AI). The report states that most SMBs i.e., Small and Medium Business retailers are not willing to implement AI or machine learning (ML) into the workflow.
There is quite contradicting statistics on retailers using AI. While 40 percent say they are not interested in implementing this technology, 44 percent say they don't find any challenge implementing AI and ML. Besides this, more than a third of the total retail business players admit they do not know these available options for their accounting solutions. One of the reasons for this conflicting data may be the early stage of implementation of AI and ML technology in small businesses.
Very small businesses making up 13 percent are lagging behind across all sectors as compared to most of the medium-sized businesses (72 percent) in implementing AI and ML. Those using AI and ML technology are mostly using for bookkeeping (76 percent), payroll processing (60 percent), bill paying (55 percent), and invoicing (61percent).
A number of small and medium businesses are adopting tech-based solutions for accounting or back-office works. Around 76 percent SMBs don't have full time or fractional Chief Financial Officers; neither have any plan to hire one, and out of them, around 58 percent use tech solutions for accounting and back office. Only 23 percent have full-time CFOs, which is due to the increasing implementation of technologies like AI and ML. If we talk about finances and funding, most of the mid-size businesses raise finances through loans from financial institutions, and small businesses (59 percent) use their credit cards to finance their business. Very small business, which makes up 77 percent, reinvests the profits they earn into the business again. The report by ScaleFactor reveals that nearly 34 percent of businesses reinvested their profits back into the business. The report also revealed that a number of such businesses showed stable or growing revenue compared to last year.
Make Your Business Smarter
AI is extensively used in business applications for data analytics, automation, and natural language processing (NLP). AI facilitates businesses in increasing sales, improve customer experience, detect fraud, provide predictive analysis, and automate work processes.
In the retail section, AI is mostly helpful to record consumer behavior and improve customer experiences. In an age when small retailers are competing with the industry behemoths, these technological advancements can be of support to them.
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