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What is AI?

AI means computer programs that do things which normally need human intelligence.

Different types of AI can:

  • look for patterns in data and use them to make predictions or recommendations
  • process and communicate using natural human language
  • create new content like text, images and computer code.

The next few years will see more and more businesses using AI as part of their operations.

Ways to use AI in your business

AI can answer simple questions over email or through a chatbot on your website. That means your customers can get instant help after hours or when it suits them.

If the AI tool can’t solve a customer’s query, it can refer them to a human for help.

Using AI this way can save time for you and your customers. But it’s no substitute for building a real human connection with customers.

Learn how to communicate with customers.

AI can analyse your customer data to identify trends, behaviours and preferences.

You can use these insights to:

  • predict future trends
  • improve ad campaigns
  • engage your customers with personalised content
  • find and fix common issues your customers have.

Find out more about marketing your business.

Some AI tools can generate text from a prompt you give it. This can save a lot of time and effort, especially if writing isn’t your strength.

For example, you could ask an AI to write:

  • product descriptions
  • website content
  • emails
  • social media posts.

Other AI programs can generate image, video and audio content.

AI can take care of a lot of routine business tasks. That frees up your time to focus on other work.

Some of the everyday things AI can help with are:

  • data entry
  • sending and processing invoices
  • accounting
  • creating spreadsheet formulas
  • scheduling appointments
  • task and project management
  • inventory management
  • generating reports.

Introducing AI in your business

Identify the problems you want AI to solve

Don’t use AI just for the sake of it. Make a list of the business problems or goals AI could help with.

You might like to refer to the goals and objectives in your:

Choose the right solution

Once you’ve identified how AI can help your business, research the best solutions for your needs.

A good place to start is by looking at what you already have. Many of the digital tools you currently use in your business might have AI features. For example:

  • word processing and spreadsheet software
  • customer relationship management (CRM) systems
  • marketing automation, email marketing and social media software
  • graphic design tools.

If you need something else, you can choose between an off-the-shelf product or a custom solution.

Off-the-shelf AI tools tend to be:

  • cheaper
  • quicker and easier to implement
  • reliable, because they’ve been tested by many users.

Custom AI solutions can be tailored to solve your specific business problems. They are usually more flexible and scalable than off-the-shelf software, so they can evolve along with your business.

However, custom solutions:

  • tend to be more expensive than off-the-shelf products
  • have ongoing support and maintenance costs
  • need to be trained on high-quality, well organised data. 

Bring your staff on board

Before introducing AI, it’s important to teach your staff about its benefits and address any misconceptions.

Some ways to do this:

  • Explain that you’re not introducing AI to replace employees. You’re using it to make their lives easier and enhance their existing skills.
  • Get staff involved in researching and choosing AI tools.
  • Train employees to use new tools effectively, safely and responsibly. This will help them see the benefits firsthand.
  • Keep communicating with staff and answer their questions as they start using AI.

Find out how to manage change in your business.

Start out small and evolve

AI has huge potential for businesses of all sizes. But there’s no need to change everything overnight.

Start by trialling AI in 1 or 2 areas of your business. Try out a few different products to test their accuracy and see what works for you. This also lets you make sure you’re using AI safely and responsibly.

Once you’ve got a better sense of how your business could benefit from AI, you can start rolling it out in other areas.

AI is changing incredibly fast. In a few years, businesses will probably be using AI tools we haven’t even thought of yet. Stay across the latest developments to keep improving how you use AI in your business.

Using AI responsibly

AI is a powerful technology, so it’s important that you use it responsibly.

Here are some things to consider to make sure your business uses AI safely, securely and ethically.

To protect yourself and your customers, set up processes and guidelines for using AI responsibly. You might like to capture these in an AI strategy for your business.

Things you could include:

  • tasks you will and won’t use AI for
  • how you’ll ensure AI output is accurate
  • when you’ll tell customers you’re using AI
  • how you’ll protect personal data and make sure you’re following privacy laws
  • any training your staff need to use AI responsibly
  • who is responsible for making sure your business uses AI safely. This should be someone high up in the business.

AI tools aren’t perfect. Just like people, they can make mistakes, take things out of context or use information from unreliable sources. Sometimes they can even discriminate against minority groups.

Before you start using a new AI tool, think about the potential harms it could cause to your business, your customers or any other people. You might like to ask your customers or clients about the impacts it might have on them.

Once you’ve identified any risks:

  • assess how likely each risk is and how bad the consequences would be
  • decide if the benefits of the tool outweigh the risks
  • if they do, make a clear plan to manage the risks.

Find out how to manage risk in your business.

As with all business software, you need to understand what you’re signing up for before using an AI tool. That includes knowing how it will treat any personal information about your business or customers.

Before you start using an AI tool:

  • check if the supplier follows the Voluntary AI Safety Standard
  • read reviews of the tool from reliable sources
  • understand what data is used and how the tool stores it
  • go over the terms and conditions carefully and don’t agree to anything you’re not comfortable with.

Make sure the AI tool:

The Australian Cyber Security Centre has more information about using AI safely and securely.

It’s important to thoroughly test an AI tool before you use it in your business.

Make sure:

  • the tool works the way you expect
  • you can manage any risks from the tool.

Once you’re using the AI tool, monitor it to make sure it keeps working correctly. Give staff a way to report problems so you can investigate and act on them.

You should also tell the tool’s developer about any issues or biases you find.

Your business is responsible for the actions of any AI tools you use. So it’s important to carefully check AI-generated content and decisions before you use them or share them with others.

Make sure the output of your AI tools:

  • is accurate
  • is relevant
  • uses language that’s appropriate for your audience
  • is unbiased and respects our diverse society.

Consider telling your customers how you use AI. Explain:

  • what you use it for
  • how you’re using it responsibly
  • the benefits for them.

How transparent you need to be depends what you’re using AI for. For example, a customer might not care that you used AI to help you write a social media post. But they probably want to know when they are talking to an AI rather than a human for customer support.

Let your customers and stakeholders provide feedback on your use of AI. If you use AI to make decisions that might have a big impact on people, give them a way to challenge those decisions.

Keep a clear record of all the AI tools you’re using.

For each tool, document:

  • why you’re using the tool
  • who in your business is responsible for it
  • its features and limitations
  • risks and potential impacts, and how you’re managing them
  • any technical details needed to understand the system
  • the results of your testing.

The Voluntary AI Safety Standard

The Australian Government’s Voluntary AI Safety Standard covers these principles in more detail.

Businesses that follow the standard are using AI safely and responsibly, which helps them build trust with their customers.

Even if you’re not ready to adopt the AI Safety Standard yourself, you should make sure:

  • any off-the-shelf AI tools you use follow the standard
  • you include the standard in any contracts for custom AI systems.

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