Harnessing the Power of AI: A Harvard Business School Guide for Small Businesses

 

Small business owners have a tremendous opportunity to leverage generative artificial intelligence (gen AI) tools, such as OpenAI's ChatGPT, Microsoft's AI-powered Bing search engine, and Poe, according to Harvard Business School professor Karim Lakhani. These tools offer a cost-effective way for small businesses to become more productive and efficient, helping them scale their operations, improve customer communication, and generate marketing content, social media campaigns, and new products. Lakhani emphasizes that the old adage in computer science about AI and job losses applies to small businesses as well: those who use AI will outpace those who don't.

To get started with AI, Lakhani suggests small business owners explore three platforms: OpenAI's ChatGPT+ (available for $20 per month), Microsoft's Bing Chat (free), and Poe, which offers access to various gen AI tools. Experimenting with these tools will demonstrate the power of AI for core business tasks. Lakhani highlights three key areas where AI can be transformative for small businesses:

Firstly, AI can enhance customer interactions by acting as a "super assistant" that helps address customer inquiries and even provide options for handling irate customers effectively. For businesses with language barriers, AI can aid in translating communications to reach wider audiences.

Secondly, AI can serve as a valuable thought partner, aiding in generating new business ideas and marketing content. By utilizing ChatGPT in brainstorming sessions, business owners can reduce the cost of generating innovative concepts.

Thirdly, AI can be instrumental in scaling operations. Whether in handling customer communications or generating social media campaigns, AI can generate efficient and implementable ideas to expand a business's reach.

Lakhani suggests that small business owners start learning about AI through YouTube, where creators share insights and solutions related to ChatGPT and gen AI. He emphasizes the importance of practice in harnessing the benefits of AI while understanding its limitations.

The potential of AI extends to continuous learning, as businesses can adapt and evolve their operating models through AI-powered insights. It can empower businesses to serve more customers and create a wider range of products and services.

Lakhani concludes by comparing ChatGPT to Ironman's suit, emphasizing that AI can amplify the capabilities of small business teams and enable them to achieve a tremendous impact with a relatively small workforce. By embracing AI, small businesses can gain a competitive edge and thrive in an increasingly digital and AI-driven landscape.