In today’s rapidly evolving business landscape, staying competitive means adapting to new technologies that can drive efficiency and innovation. This is especially true for SMEs that often run on lean resources.
With AI revealing its transformative potential across the business landscape, how can SMEs leverage it for success? SME leaders Darran Ong, Marketing Manager, Crestar Fan Singapore and Nelly Khoo, Co-Founder, Zealys Singapore share the insights gained through AI adoption in their own companies. Lee Hui Li, Managing Director, Microsoft Singapore also explains how SMEs can choose AI solutions that serve them best.
Could you tell us a little about your company and what inspired you to adopt AI?
[Darran Ong] Crestar Fan has been enhancing the quality of life for our customers with products from fans to air purifiers for 20 years, and with AI enhancing the quality of our work it will be even easier to continue doing that well into the future.
We pride ourselves on innovation, that’s why new technology like AI is so interesting for us. AI has the potential to transform how small and medium businesses operate by automating tasks and optimising resources so we can get the most out of our teams. AI really levels the playing field for SMEs so we can compete more effectively with larger companies.
[Nelly Khoo] I co-founded Zealys to help other SMEs streamline and automate HR processes – our software does the heavy lifting so they can focus on their people and business success. Now, AI is doing that for my business, saving me time on admin so I can focus on strategy and growth.
Why will AI be a game changer for SMEs?
[NK] AI is a game changer for SMEs because it enables us to achieve greater efficiency, reduce costs, identify new opportunities by analysing data at scale, and improve productivity, even with limited resources.
[Lee Hui Li] There’s a bit of a perception that AI is for big businesses with their own highly skilled IT departments to implement it, but thankfully that’s not the case at all. AI is a game-changer for small and medium businesses because it’s actually quite easy to adopt and helps them to unlock efficiency and growth potential.
SMEs make up 99% of local enterprises in Singapore and contribute nearly half our GDP, so using AI to streamline processes, improve decision-making, and enhance customer experiences will be a huge step-change in the value they create.
By adopting AI, SMEs can increase revenue, reduce time to market, give them time back to focus on core growth areas and strengthen their competitive position in an evolving marketplace.
How can SMEs tap onto AI for greater efficiencies?
[LHL] The pace of work is outpacing our ability to keep up, and AI can help lift the burden by making us all more productive. We’ve been hearing from SMEs that automating time-consuming tasks like report generation and presentation design have helped free up valuable resources, allowing them to concentrate on strategic growth.
[DO] We’ve been using Copilot to write emails, design engaging presentations, analyse historical sales data, and create promotional materials that really resonate with our customers. AI tools can help SMEs do more with less, maximising efficiency and output for even the smallest team.
[NK] As just a few examples, since adopting AI at Zealys we’ve reduced the time we spend writing emails by 50% by using Microsoft Copilot to summarise emails we receive and to draft responses. We also use Copilot for data analysis, using historical data to predict trends and meet our customer’s future needs. Now we can reinvest the time saved to use those insights to develop our services and grow the business.
What are some challenges SMEs face when implementing AI? How can they be overcome?
[LHL] SMEs often encounter challenges when implementing AI due to workforce constraints or budget, as highlighted by a 2023 Infocomm Usage by Enterprises survey by IMDA. Many SMEs perceive AI as complex and resource-intensive. That’s why it helps to join initiatives like the Copilot for SMEs Program.
[DO] Most small businesses will tell you the challenges are usually around limited budgets, lack of in-house expertise, and hesitancy to adapt to new technology, especially if the employees are less tech-savvy.
The best way to overcome those challenges is by starting with affordable, scalable AI solutions that meet your specific needs. Partnering with trusted providers and offering some basic AI training for staff can help close the skills gap as well, and make everyone more comfortable and confident using AI.
By gradually integrating AI, businesses can also assess its impact and make adjustments as they go.
[NK] AI is still an incredibly new technology, so SMEs sometimes have a lack of technical expertise or confidence to choose the right solution, so consider partnering with AI service providers or a technology partner to bridge the skill gap. Choosing AI solutions that are compatible with your current systems will make integration easier. Technology vendors who provide support during the integration process will help ensure a smooth transition.
Employees may resist adopting AI due to fear of job displacement or lack of understanding. To bring them on the journey, make sure you communicate the benefits of AI clearly, involve them in the implementation process, and provide training and support to adapt and understand how this technology can enhance their roles.
[LHL] Like any new technology, it takes a bit of time to get used to using AI to augment the work you do. Microsoft is collaborating with SkillsFuture Singapore to equip 2,000 SMEs with AI skills over three years, and have already trained more than 1,400 to use AI confidently. With the right support, tech and training for employees, SMEs can effectively harness AI to improve performance and drive growth.
What should SMEs, who have limited resources and expertise, look out for when choosing AI solutions?
[DO] Look out for AI solutions that are cost-effective, easy to implement, and offer solid vendor support. You need to consider tools that are flexible and scalable so they can grow with the business without requiring extensive resources upfront. Opt for tools with user-friendly interfaces and training resources, which are essential for teams that may not have technical skills. Look for solution providers who offer onboarding support and practical guidance to help your team quickly adopt and integrate AI into their workflows so you have a smoother, more successful implementation.
[NK] SMEs should prioritize AI solutions that offer a good balance between cost and functionality, are user friendly, easy to implement and provide scalable pricing models, so you can start small and expand your usage as you grow. We assessed several AI solutions before deciding to join the Microsoft Copilot for SMEs Program to access grants available through Enterprise Singapore, which meant we could invest more cautiously as we figure out what will work for our business.
[LHL] When selecting AI solutions, SMEs with limited resources should prioritize tools that are intuitive, scalable, and easy to integrate with existing systems. Choose solutions that address specific pain points, such as improving customer service, automating repetitive tasks, or enhancing operational efficiency. Security is also a key consideration, so make sure you select AI solutions from trusted providers to safeguard sensitive data.
