Modern technology was once thought to be accessible only to large enterprises. However, with the development and widespread adoption of artificial intelligence (AI), SMEs are now becoming more equal in their ability to access the advantages offered by technology.
AI "permeates" every activity
Without the need to spend large sums to hire content creators, a small subscription fee for ChatGPT can turn it into an effective "employee" for executing marketing strategies. According to Le Ngoc Han, CEO of The gioi Bang, the marketing department used to struggle with writing content to promote products. Now, with just a few people and the application of this artificial intelligence tool, marketing activities have become much more efficient. “We are leveraging AI tools to support various stages, from management to sales, to increase the company's effectiveness,” she said.
Netco Post, a company operating in the logistics field, says intense competition in the industry has compelled the company to seek technological solutions. By applying technology in various areas, such as route optimisation, customer care, and human resource management, the company has increased productivity and efficiency by more than 20%, with some departments improving by up to 100%.
Nguyen Xuan Hiep, Deputy General Director of Netco Post, mentioned that the company initially hesitated about the resources needed to innovate processes and adopt new technology. However, after research, AI emerged as the top choice due to its growing accessibility and its superiority in many areas of the system.
Discussing the integration of AI into management and business operations, many businesses still believe that this is a playground for large companies. However, with recent advancements, artificial intelligence has also become a powerful assistant in the production and business activities of small and medium-sized enterprises.
AI technology is rapidly advancing in transportation, finance, marketing and advertising, as well as in science, healthcare, security, and the public sector. In these fields, AI systems can identify patterns in massive datasets and model complex and interdependent systems to improve decision-making and cost-efficiency.
According to a report by global management consulting firm McKinsey & Company, AI is expected to add 13 trillion USD to the global economy by 2030, equivalent to a 1.2% annual increase in global GDP. In a survey of 1,026 senior business leaders in the US in 2023 conducted by PwC (one of the "Big Four" accounting firms), 73% of the companies reported integrating AI into their production and business operations.
AI is set to play a crucial role in processes, generating breakthrough efficiency in business and management. According to Forbes, AI's advanced algorithms can detect malfunctions and reduce error rates, potentially saving businesses up to 37% in costs by 2024.
A survey by Accenture found that AI applications in business operations can double workforce efficiency and increase average profitability by 38% by 2035. These figures indicate that AI will become a potential choice for many businesses if they can quickly grasp and effectively apply this technology.
Many barriers remain
Although many businesses have shown interest in and begun applying AI in their production and business operations, surveys indicate that most small and medium-sized enterprises are still not ready and struggle with AI implementation.
Pham Tuan Anh, a representative from the TMA Technology Group's AI Centre, noted that there are several factors contributing to this hesitation, including difficulties in arranging capital and human resources, and challenges in managing large datasets from various sources. Many businesses associate AI with high costs, but in reality these costs are minimal compared to those of digital transformation and data analysis.
On the other hand, a company specialising in cleanroom and high technology expressed concerns about data security and integrating AI systems into their existing infrastructure. “The current challenge is that the benefits of applying AI in business are not yet clear. Moreover, adopting this smart technology requires investment in training personnel and operational management”, the company's owner explained.
Deputy Director of the Innovation Programme at KPMG Vietnam Phan Tan Quoc mentioned that many businesses, especially SMEs, are hesitant to adopt AI due to a fear of being replaced. There is a common belief that AI could eventually act like a "CEO", rendering human workers obsolete. Employees resist the use of AI because they fear it might cost them their jobs. Moreover, companies with stable annual profits often lack the motivation to innovate. These barriers have limited the number of SMEs in Vietnam which are taking advantage of AI opportunities.
Regarding AI trends, Vice Chairman of the Board at FPT University Hoang Nam Tien, pointed out that AI systems previously relied entirely on human-generated data. However, AI has recently developed the ability to generate its own data, create algorithms, and determine its actions. Often, the results produced by ChatGPT can surprise even its developers.
“AI applications are now quite common and affordable. Even companies with just one or two people can apply AI. The biggest challenge in applying AI, whether in large or small enterprises, is changing the mindset of leadership. If leaders delegate the responsibility of AI implementation to department heads, failure is almost certain. Seventy percent of AI and big data projects fail because leaders assign the task to subordinates,” Hoang Nam Tien emphasised.
