As you know, business is extremely competitive: everyone is scrambling to be number one and stay number one, using any and all technological advantages they can get their hands on, but it’s not easy. Technology changes all the time, making it difficult to always be up to date.
Nonetheless, emerging technologies are often the key to staying ahead, provided they are used effectively. Generative AI is the latest emerging technology that’s gathering momentum; it is also much more than just a buzzword, and we believe South African business owners would benefit from wrapping their heads around it.
In mid-2023, a McKinsey Global Survey called “The state of AI in 2023: Generative AI’s breakout year” revealed some fascinating insights into the world of Generative AI, or “GenAI,” and how it’s shaping business around the world. Today, we’ll delve into the findings of this study and discuss why South African business owners should seriously consider embracing Generative AI for their businesses, too.
What is Generative AI?
Before we explore the potential benefits, let’s examine Generative AI more closely. In simple terms, it’s a part of artificial intelligence dedicated to generating realistic content like text, images, or music without direct human involvement. Think ChatGPT, Dall-E, and services like them, and you have an idea of what GenAI is capable of. Essentially, it enables computers to generate ‘new’ creative content all on their own.
According to the McKinsey report, Generative AI is making some pretty big waves worldwide. The survey revealed that one-third of respondents reported regular use of GenAI tools within their organisations. Yes, in a relatively short time, AI tools have become an important part of businesses around the globe.
South African business owners take note
Now, you might be thinking, “How does this relate to my South African business?” Well, the connection lies in the potential advantages that Generative AI can offer you.
- Staying competitive
The business world is becoming increasingly competitive, and having and maintaining a competitive edge is essential. Generative AI can help your business be even more competitive by automating tasks, creating content more efficiently, and providing innovative solutions to longstanding challenges. Business services like realistic chatbots that can deliver decent customer service and answer questions in a way that isn’t frustrating for the customer are examples of how GenAI can help.
- Expanding your reach
Expanding your business by reaching more people is a smart move. Generative AI can be a valuable tool for this by crafting custom content that resonates with your target audience, thereby widening your reach and engaging your customers on a more personal level. Customers that are engaged are more likely to become customers that return.
- Enhancing productivity
When you automate tasks like data entry and transcribing audio or video using GenAI, and when you generate content like marketing emails, social media updates, and product descriptions quickly, your human team can concentrate on more strategic and creative work. This has the potential to dramatically boost productivity and allow your teams the time and freedom to do more valuable things with their work time.
- Cost savings
The McKinsey report suggests that organisations using GenAI experience various advantages, including cost savings. By automating tasks and improving efficiency, you can reduce operational costs and allocate your resources more effectively.
- Strategic decision-making
Accessing immediate insights derived from reliable data is essential for making decisions that benefit your business the most. Generative AI can examine huge amounts of data and give you these insights in real time, giving you the ability to make smart strategic choices that drive your business forward.
- Adapting to industry trends
Generative AI can help you quickly adapt to changing industry trends. By automating processes and content generation, you can keep up with the latest developments and respond to market changes faster than ever before. And since today’s business world does indeed change faster than Superman in a phone booth (showing your age there – Ed), being able to respond almost as quickly thanks to GenAI is a major advantage.
- Employee development
With so much to learn about AI in general and GenAI specifically, you would be right in being concerned that your staff’s skill levels are not where they need to be. This is why reskilling your workforce is a key aspect of embracing Generative AI. The McKinsey survey suggests that adopting this technology can lead to more extensive reskilling efforts, ensuring your employees can do what’s expected of them, and for their skills to remain competitive in the job market.
The road ahead for South African businesses
While Generative AI holds immense promise, it’s quite important to approach its adoption strategically. Here are some steps for South African business owners to consider:
- Assess your needs: Understand how Generative AI can benefit your specific industry and business model. Identify areas where automation and content generation can make the biggest impact. This is where consulting with your IT provider or talking directly to companies like Microsoft can shed some much-needed light on your next steps.
- Invest in training: Reskilling your employees is a step that cannot be skipped. Invest in training programs to ensure your workforce understands the power of GenAI and can harness it effectively.
- Collaborate with experts: As we touched on in step 1, you must seek guidance from experts and technology providers experienced in implementing (or creating) Generative AI solutions. They can help you navigate and customise the adoption process to meet your requirements.
- Monitor progress: Continuously monitor the performance of Generative AI solutions within your business. Adjust your strategies as needed to maximise benefits.
Generative AI is no longer a distant concept; it’s a reality that is transforming businesses worldwide. While the McKinsey report was more about the general state of GenAI adoption in the international business community, South African business owners would do well to take note of this technology and also consider the potential benefits it can offer.
Embracing Generative AI can help your business stay competitive, engage with customers more effectively, and drive growth in an increasingly digital world.
So, South African entrepreneurs, we encourage you to explore the possibilities of Generative AI. At the very least, we encourage you to look it up online (here’s a good starting point) and give some thought to talking to someone who knows a lot about it to start getting a sense of what it could do for you in the coming months and years.
At worst, it’s a lame trend that doesn’t actually do anything. At best, it could propel your business into the stratosphere. Seems like a risk worth taking.