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How to reduce costs with AI?

Written by Lautaro Schiaffino | Oct 1, 2024 2:32:01 PM


Reducing costs with AI in the business world is currently a top priority for all organizations seeking to improve their productive performance. This technology is useful for achieving this goal, allowing them to optimize resources while reducing errors through the automation of repetitive operations.

By delegating routine tasks to AI tools, employees can focus on strategic activities that enhance productivity and innovation. From data analysis to personalizing the customer experience, AI offers opportunities to cut costs. And the best part is that it does so without compromising service quality, as you will see below.

SMEs: Reducing costs with AI

Among the most notable benefits of cutting costs with AI is its ability to automate repetitive and tedious tasks. This allows companies to optimize their time and other resources by achieving:

  •       Automating manual processes. It eliminates certain needs for human intervention in routine matters, such as inventory management, customer service, or basic accounting.
  •       Prevention of human errors. AI algorithms can analyze large amounts of data with remarkable accuracy, minimizing errors and facilitating decision-making.

It also improves productivity by freeing employees from repetitive tasks. This enables companies to focus on higher-value strategic activities, boosting overall productivity.

SMEs and automation

For SMEs, automated systems represent a competitive necessity. Technology enables these companies to reduce costs with AI and compete on equal terms with larger players. They can benefit from AI in:

  •       Automated marketing. AI-based tools that send personalized email marketing campaigns or manage social media automatically, improving time and resource management.
  •       Customer service. AI-powered chatbots can work 24/7, reducing the workload of the human team and enhancing the customer experience.
  •       Predictive maintenance. For companies that operate with equipment and machinery, AI can anticipate when to perform necessary maintenance to avoid costly breakdowns.

As you can see, it's possible to reduce operational costs with AI while increasing the quality of products and services offered.

AI in small businesses

Small businesses can benefit from AI without making costly investments. Thanks to the accessibility of cloud-based tools and customized solutions, any business can integrate AI into its operations.

From optimizing inventories to personalizing the customer experience, small businesses become more competitive and agile by reducing costs with AI. Today, the use of AI is not only affordable but also facilitates a high return on investment (ROI).

By automating routine processes, companies can significantly reduce their operational costs. They can also optimize time management and decision-making.

Reducing costs with artificial intelligence

AI has the potential to generate savings in various areas, such as:

  •       Human resources. Here it can help identify the right candidates for each position, minimizing the time and cost of hiring. 
  •       Price optimization. With special algorithms, it can analyze buying patterns and market behavior, adjusting prices in real-time, maximizing revenue while cutting costs with AI.

By analyzing data, it helps companies make informed decisions regarding sales, inventories, and market strategies.

5 examples of AI for SMEs

There are many examples of how to reduce costs with AI; however, below are some of the most notable ones.

1.   Customer Service Chatbots

Tools like Tidio or LivePerson allow businesses to provide customer service with immediate, personalized responses without the need for employees to be available 24/7.

2.   Automated Digital Marketing

Platforms such as Mailchimp or HubSpot use AI to analyze consumer behavior and send personalized marketing messages. This enhances engagement and reduces the time spent on campaigns.

3.   Automated Accounting

Tools like QuickBooks use AI for managing business accounting, from automatically generating financial reports to categorizing transactions, minimizing time and errors.

4.   Inventory Management

Solutions like Zoho Inventory help SMEs efficiently manage their inventories by forecasting demand and optimizing available stock.

5.   Schedule and Meeting Management

Tools like Darwin AI leverage complex algorithms to automatically schedule meetings, optimizing available time slots for both clients and employees. This saves time, reduces errors, and avoids scheduling conflicts.

Additionally, Darwin AI’s value proposition for reducing costs with AI includes its smooth integration with other business systems. This ensures a more cohesive and efficient user experience by combining NLP code management and artificial intelligence. Darwin doesn’t just manage schedules but also interacts with customers in a personalized way.

Artificial Intelligence in Resource Management

Efficient management of human and material resources is essential for success in any business. In this regard, AI has proven to be timely. Through advanced algorithms and predictive analytics, this technology can:

  •       Optimize resource allocation. It analyzes large volumes of data related to demand, available inventories, and worker performance. This enables it to recommend how to distribute resources to maximize efficiency and profitability.
  •       Staff management. AI can optimize staff scheduling, predicting absences and managing employee turnover. Therefore, it’s ideal for reducing costs associated with human resource management.

Predictive maintenance is also crucial for companies that depend on equipment and machinery. AI, using natural language processing (NLP), can predict when preventive maintenance should be performed to avoid costly breakdowns and sudden stoppages.

How to Use AI to Reduce Costs in SMEs

SMEs can reduce costs with AI across various areas, making them more competitive. Key strategies include:

  •       Automating repetitive tasks. It handles time- and resource-consuming activities like data entry, invoice processing, and inventory management. This reduces the need for additional staff and minimizes errors. 
  •       Optimizing digital marketing. This technology can analyze user behavior to automate highly targeted ad campaigns, improving return on investment.

Finally, certain AI algorithms allow businesses to identify areas where resources are being wasted due to operational inefficiencies or unnecessary expenses. They then offer customized solutions to improve profitability.

Artificial Intelligence in Customer Service

One of AI's biggest impacts on SMEs is in customer service. Implementing AI-based tools like chatbots and virtual assistants allows companies to enhance the user experience while reducing costs.

1.   Intelligent Chatbots

These allow companies to handle user queries 24/7 without human staff, making them ideal for reducing costs with AI. These tools can respond to common questions and also learn from user behavior to provide increasingly precise and personalized responses.

2.   Omnichannel Support

AI can integrate with multiple communication channels to offer an efficient and consistent customer service experience. This reduces the burden on customer service teams and enhances outcomes.

3.   Automatic Problem Resolution

AI can analyze queries and automatically redirect more complex cases to the appropriate human agent. This reduces costs with AI while improving the speed and efficiency of service.

Automation of Business Processes with AI

The automation of processes using AI is having a significant impact on cost reduction. SMEs that apply AI to automate their business processes achieve benefits, which we'll explore below

1.   Automating Workflow

This allows businesses to create automated workflows that connect various applications and systems. It eliminates the need for human intervention in tasks such as updating data, sending emails, and even generating reports.

2.   Supply Chain Management

AI can optimize the supply chain by analyzing purchasing patterns. It also makes demand predictions and suggests when to place orders or adjust prices. This helps reduce storage costs and avoid excessive inventory.

3.   Automated Invoicing and Accounting

By automating the billing process, bank reconciliation, and financial reporting, the time required for these tasks is significantly reduced. In addition, accounting errors, which could affect the company's costs, are minimized.

Reduction of Operational Costs with AI

By leveraging AI in their operations, businesses can increase productivity and reduce expenses in areas such as those discussed below.

1.   Automating Repetitive Tasks

By automating repetitive tasks such as data processing and responding to frequently asked user questions, the need for personnel is reduced. This saves time and money, optimizing the company's productive and financial outcomes.

2.   Supply Chain Optimization

Using AI, SMEs can efficiently manage their inventories, anticipating product demand and adjusting stock in real time. This is ideal for reducing storage costs and avoiding overproduction or product shortages.

This results in significant cost savings. Additionally, complex algorithms can be used to negotiate better prices and terms with suppliers.

3.   Predictive Maintenance

Companies dependent on machines or technology can use AI to apply predictive maintenance patterns. AI can analyze real-time data and predict when machines may fail, enabling the scheduling of repairs before costly breakdowns occur.

4.   Reduction of Human Errors

AI’s ability to manage complex data and make decisions based on accurate analysis allows businesses to reduce the risk of human error. In activities such as accounting, inventory management, and financial reporting, errors can be costly. However, through AI, with its automated and controlled processes, these risks can be eliminated.  

5.   Automated Customer Service

AI-powered chatbots and virtual assistants enable 24/7 customer service without the need for human staff. This reduces payroll costs and improves the efficiency of resolving common problems. Chatbots can also redirect customers to an appropriate human agent if needed, enhancing the quality of service.

AI for Agenda and Meeting Management

One key aspect of AI is its ability to add value to SMEs in managing schedules and meetings. This is something Darwin AI excels at. While managing schedules may seem like a minor task, for companies with small teams or no administrative departments, it can represent a significant amount of time and resources.

In this regard, AI helps organize calendars and meetings while reducing friction and increasing operational efficiency.

Virtual Assistants for Meeting Planning

AI-based tools like Darwin AI help businesses automate and schedule meetings with clients, employees, and partners. This type of virtual assistant can analyze participants' availability, send invitations, and make schedule adjustments in response to last-minute changes.

In doing so, it eliminates the need to manually coordinate every detail related to these meetings.

Agenda Optimization

AI can optimize employees' daily schedules by prioritizing the most significant tasks and meetings based on their impact on business results. Complex algorithms can analyze available time and scheduled activities to create a more efficient work plan. This allows employees to focus on higher-value tasks.

Automatic Reminders and Task Tracking

Automatic reminders can be sent prior to meetings or important deadlines, helping employees stay on top of their commitments.

Additionally, some tools can track the actions assigned during meetings and automatically assign tasks to certain team members. This boosts productivity by reducing costs with AI and ensuring no important details are overlooked.

Post-Meeting Analysis and Reports

AI can also assist after meetings by transcribing discussions and generating automatic summaries, making it easier to review key points and agreements. These transcriptions can be shared with participants to use as a reference for following up on pending tasks, fostering transparency and team efficiency.  

Use AI to Take Your Business to the Next Level

As you have seen, AI helps reduce operational costs by automating repetitive tasks. It also aids in decision-making and performing predictive analyses, optimizing key processes such as inventory management, customer service, and marketing. So, dare to use AI, modernize your business, and enhance its productive performance!