Artificial intelligence could add $500 billion in value to SMEs globally, whether they develop AI applications for others or use it themselves.
So says Lee Chin Jian, vice-president at boutique investment bank DAI Magister, which has offices in New York and in London, and has advised tech startup clients which have been sold to Apple, Nokia, NVIDIA, Shell, Ziff Davis and others.
Chian Jian sees the boost in SME value coming from two prongs: creating AI applications that are bought by enterprise organisations and SMEs using AI themselves.
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Said Chian Jian: “The transformational potential of AI represents a vast and growing opportunity and a ground-breaking leap into a future brimming with unprecedented possibilities for enterprises.”
According to Chian Jian, virtually no major enterprise-grade software company has the necessary AI expertise to reconfigure its product suite. Instead, they resort to acquiring AI start-ups to bolster their capabilities and ensure a smooth integration of AI into their workflows and operations.
This creates a compelling market opportunity for specialised enterprise AI businesses that offer solutions designed for seamless embedding within existing enterprise systems and across different business functions, said Chian Jian.
However, SMEs will also be boosted by embedding AI-augmented services into customers’ everyday dealings with businesses, he said.
Embedding AI in legal and compliance operations will be particularly transformative for enterprises. As AI adoption grows, ensuring its reliable operation becomes critical, especially in sectors such as financial services where accuracy is paramount. Discussions around monitoring AI will intensify, leading to increased investment and job creation for overseeing and regulating its use.
Chian Jian said: “In terms of regulatory compliance, AI keeps businesses up to date with changing laws, reducing legal risks, and protecting their reputation. Furthermore, AI’s predictive capabilities assess historical data, identify potential risks, and develop proactive risk mitigation strategies, helping businesses stay ahead in safeguarding against liabilities.”
AI co-pilots will also become an integral part of enterprises across diverse business functions, transforming how businesses operate and make decisions, said the London-based banker.
For skilled workers, AI will be an invaluable assistant in navigating complex decision-making processes, providing valuable insights to tackle intricate and challenging tasks more effectively.
Less-skilled workers will witness the automation of repetitive and mundane tasks, liberating their time and energy to focus on activities that bring greater value.
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