It’s hard to overestimate the effect AI is having on our lives.

Over the last couple of years, there have been constant headlines and endless think-pieces about new advances in AI, and how and why you should use it, particularly at work.

It’s easy to be overwhelmed by the amount of advice being shared, and many business owners may wonder where to start when looking to use AI in their own companies.

However, there are clear signs that many are starting to realise the benefits AI can provide, with an RTÉ report confirming that 74% of Irish businesses are now actively using AI at a level beyond experimental.

So, read on to explore AI from a business owner’s perspective and gain some ideas about how much you should rely on it in your own business.

Your AI strategy will depend on your own preferences and business structure

You need to understand, up front, that there are no “correct” answers when it comes to using AI in your business.

Furthermore, it doesn’t have to be a binary decision between the two extremes of ignoring it and giving yourself over to it entirely.

For one thing, disregarding it overlooks the real benefits AI can provide. It also means you may lose out if your competitors are using it effectively.

Likewise, over-reliance could create problems for you and your employees in the future.

Ultimately, it’s important to find an approach you are happy with, and that should come from a considered judgement and a step-by-step approach rather than leaping in at the deep end.

You will want to find a level of reliance you are comfortable with

On the surface, AI is easy to adopt – many of the tools are free and seem to make an immediate impact. For example, you could find that using ChatGPT for research is more user-friendly than Google.

You may already make use of AI in your life outside work, so you already have a good idea of the functionality and the benefits it can provide. However, you wouldn’t normally incorporate any new process or system into your business without trialling it, and that rule should apply to AI too.

You could start trialling AI in your business by using it to conduct some straightforward research and provide you with some market information and competitor analysis. These would have the benefit of being low risk in terms of how much you will need to rely on them.

A key point to help give you peace of mind is that any AI-driven external output undergoes strict checks, mitigating the risk of reputational damage should a mistake occur.

By initially using AI to save you time, you may start to appreciate its wider opportunities

Once you’ve started finding your way with the new technology, you can start relying on it to find tangible ways to save time and money.

Again, the level of detail in this will depend on your business.

Repetitive tasks can be onerous and time-consuming. Anything that frees up time for you and your colleagues is clearly advantageous – provided that the quality of the output remains consistent. If you’re spending less time on routine work that you can get AI to help with, you’ll have more time to devote to driving your business forward.

While this may require an initial time commitment for due diligence and establishing your AI strategy, it can pay dividends once you are up and running.

In this way, you will start to find the right balance between reliance and added value.

This means you won’t have to move too far outside your comfort zone of relying on AI, especially if you build in suitable oversight at each step forward.

The next step will be proper business integration

When you are happy that relying on AI to perform certain tasks is proving advantageous for you and your business, you can then look to take it to the next level.

This will involve starting to embed AI into your business functionality and decision-making.

Having taken a measured approach to AI up to this point, you’ll likely have started to appreciate the benefits it can provide you with, and will already have a good idea of how you may want to integrate it into your business.

Clearly, this will be dependent on the type of business you run. It may involve functions such as demand forecasting, pricing strategies, customer acquisition, and competitor analysis.

A lot will depend on how effective your current data systems are, and how they are managed and maintained.

It’s important to know the dangers of over-reliance on AI

Clearly, any new technological advances come with teething issues and potential problems.

Such issues may include:

• Your business becoming overly dependent on AI may discourage staff input.
• Automated AI output may create a reputational risk with some of your clients.
• A few leading AI companies, such as OpenAI, remain in their infancy and could be subject to volatility, changes in regulation, or a shift in governance over the coming years.
• You may face data security issues if your business or client information is provided to public AI tools.

An awareness of some of these issues up front can help you mitigate their effects. In each case, it can help to ensure you have the necessary human oversight, particularly around customer and client-facing communication.

Never overlook the human element that makes your business unique

It’s important to recognise that there will be certain functions where you will not want to involve AI in your business. If you have a longstanding relationship with your clients and customers, for instance, outsourcing communication to an AI “chatbot” might damage the rapport you have built over the years.

Ultimately, your business will reflect you in terms of your outlook, motivations, and objectives. So any decisions around strategy will still sit with you and your leadership team.

Likewise, while some businesses use AI as part of their recruitment process to screen CVs, ultimately, you will want to make the decisions about hiring new employees and issues such as career progression.

These underline the important point that, regardless of how much you come to rely on AI, your business is a unique enterprise that requires human labour, presence, and thoughtfulness.

Get in touch

There’s no doubt that, used effectively, AI can be a massive asset to your business. However, some things still require a human touch, including your financial plan.

Email us at clients@iqf.ie or call +353 71 915 5560.

Please note

This article is for information only. It does not constitute advice.

It describes the financial planning services iQ Financial can offer you. Financial planning services are not regulated by the Central Bank of Ireland.