# Empowering Small and Medium Businesses with Generative AI

Small and medium businesses (SMBs) face challenges in growing and maintaining profitability in a competitive and tightening economy. According to the Small Business Administration, SMBs generate 44% of the US GDP, making them a crucial segment of the market. In order to support SMBs, enterprises need to provide solutions that reduce administrative burden and deliver tangible value. By incorporating generative AI, businesses can offer unique services tailored to the needs of SMB customers. Here are four ways that enterprises can utilize generative AI to empower SMBs.

## Summary:

1. Enterprises can create personalized experiences for SMBs based on qualitative and quantitative data.

2. Enterprises must offer tailored support for SMBs as they adopt new products.

3. Enterprises should strategically align pricing models to the needs of SMBs.

4. Enterprises should offer a digital experience with increased self-service options.

The implementation of generative AI can drive value for both SMBs and the enterprises that serve them. It allows enterprises to meet the needs of growing businesses and even help SMBs increase operational efficiency. The right technology can assist enterprises in providing strategic solutions for SMBs.

## 1. Personalized Experiences Based on Qualitative and Quantitative Data:
To drive value through personalization, service providers need technology systems with centralized customer journey logs that track interactions, sentiment, and next steps across every touchpoint. Generative AI tools can analyze customer trends and market forces to recommend products that meet each SMB’s specific needs. Data-driven personalization is crucial in today’s business environment. Forrester reports that 89% of digital businesses are investing in personalization to enhance the customer digital experience.

## 2. Tailored Support for SMBs:
Most SMBs do not have extensive tech teams to support the adoption of new products and services. Enterprises must provide proper tech tools to assist SMBs in understanding the value of new products and to aid in testing and implementation. Generative AI can translate SMB needs into product use cases, and the right tech systems can enable SMBs to test products in a sandbox.

## 3. Strategic Pricing Models:
Enterprises should align pricing models with the specific needs of SMBs. Usage-based or fixed time-based pricing models allow SMBs to pay for only what they use or based on what they can afford. Watsonx.data, a generative AI solution, enables enterprises to centrally gather, categorize, and filter data from multiple sources. This allows businesses to track usage, generate dashboards, and make strategic decisions.

## 4. Digital Experience and Self-Service Options:
SMBs prefer digital interactions and self-service options. Enterprises need to offer end-to-end digital experiences, making small tasks such as updating billing information and contact details easy for SMBs. Conversational AI solutions can reduce call wait time and provide intelligent customer care across all touchpoints. IBM watsonx Assistant is an example of a tool that addresses complex tasks and improves automatically over time through every conversation.

By providing powerful, capable generative AI solutions, enterprises can meet the specific needs of their SMB clients to help them succeed. If implemented correctly, these technologies can drive value for both SMBs and the enterprises that serve them.

## FAQ:

Q: What is generative AI?
A: Generative AI refers to technologies that generate content, mimic human behavior, or solve problems based on pre-existing data or instructions.

Q: How can generative AI benefit SMBs?
A: Generative AI can help SMBs personalize customer experiences, offer tailored support, facilitate strategic pricing, and provide digital self-service options for efficient operations.

Q: What percentage of the US GDP do SMBs generate?
A: SMBs represent 44% of the US GDP, according to the Small Business Administration.

Q: Can generative AI solutions help SMBs increase operational efficiency?
A: Yes, generative AI solutions can assist SMBs in increasing operational efficiency by providing strategic solutions, such as CRM automation and self-service options.

Sources:
– [Small Business Administration](https://advocacy.sba.gov/2019/01/30/small-businesses-generate-44-percent-of-u-s-economic-activity/)
– [Forrester](https://www.forrester.com/blogs/transform-your-personalization-strategy-at-forresters-consumer-marking-forum/)
– [McKinsey](https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/winning-the-smb-tech-market-in-a-challenging-economy)