The Age of Artificial Intelligence? Use Cases on Leveraging AI as a Startup in Nigeria
Artificial intelligence (AI) is being increasingly adopted by businesses worldwide for optimized operations and enhanced efficiency. These solutions range from automated chat-bots to predictive analytics tools that can provide valuable insights into customer behaviour. By leveraging AI, SMEs can gain a competitive edge and better serve their customers; and Small and medium-sized enterprises (SMEs) in Nigeria are not left out. We will explore some use cases for AI in SMEs in Nigeria.
Consider a scenario where an organisation is looking for more efficient ways of managing its customers, it could begin by creating a chat-bot that facilitates engagement with customers and gathers feedback for the company. The chat-bot could then be used to generate a more accurate forecast of customer demand, which can in turn help organisations better plan their resources. SMEs can integrate chat-bots, a conversational AI, on their websites or social media pages for customer service. These chat-bots can interact with customers in real time, answer common questions, and guide visitors to solutions or products. This allows businesses to address customer needs efficiently and cost-effectively.
AI solutions have also made it simpler for SMEs to scale their businesses as they have eliminated repetitive tasks and provided greater visibility into operations. Case in point – leveraging AI to drive more effective marketing strategies.
SMEs can integrate AI-powered algorithms in social media marketing to analyze consumer behaviour and provide insights into customer preferences, thereby aiding targeted marketing. With AI, SMEs can automate the delivery of personalized advertisements to the right customers at the appropriate time. That can help improve customer loyalty and lead to a competitive edge in the Nigerian market. AI can also help SMEs to forecast sales by analyzing before-and-after-sales data easier.
When considering the banking sector, for instance, banks have traditionally relied on granular data that is specific to each customer’s needs and banking history, AI enables a more holistic analysis of this data so that consumers can receive offers tailored to their preferences and behaviours. This also means that customers are increasingly likely to benefit as they will be given better opportunities for loans and other financial services.
The E-commerce sector saw a surge during the COVID-19 lockdown in 2020, and that surge has been maintained since then, riding on an increased introduction of logistics/delivery services across the country. These services can use AI to predict demand, track inventory, and schedule deliveries. When utilized with GPS tracking and route optimization features. It can also help SMEs improve last-mile delivery logistics and optimize route planning on Nigerian roads, monitor products’ environmental conditions during transportation, ensuring that delicate products are transported under the right conditions.
Additionally, by automating certain operations, addressing customer needs through chat-bots, and improving logistics, SMEs can streamline business processes and focus the organization’s resources on other essential areas of growth. The incorporation of AI into SME operations could mean, in many cases and for many businesses, the step towards increased productivity, enhanced efficiency, and ultimately, financial success.
However, there are still significant barriers for small businesses in Africa such as the inability to access funding, tariff and non-tariff barriers to trade, low levels of awareness and business-running capacity, unstable business environments and prevailing access-to-market challenges. With this in mind, there is the ever-important need for governments, in collaboration with the organised private sector to work together to overcome these barriers so that small businesses can flourish and create jobs, contributing to the economic growth of the country, and continent at large.
This article was written using our integrated AI research and writing tools. This article is part of our AI Writer Series, aimed at showing the impact of Artificial Intelligence (AI) in knowledge sharing and Thought Leadership.
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