AI in SMEs: Focus on Solving Real Problems, Instead of FOMO

The latest research highlights the significant potential of artificial intelligence (AI) to drive innovation and productivity for businesses. A new study by the German Economic Institute (IW), “Spillover Effects of Data Centres: The Backbone of the AI Revolution in Germany,” found that companies using AI are generating impressive results:

• 66% of companies that use AI are primarily focused on using generative AI to gain efficiency, freeing up time for more productive work.
• 42% are leveraging the technology to develop new business models and improve internal processes through data-driven analysis and decision-making.
• Innovative companies using AI generate 32% of their revenue from new products and services, compared to just 25% for innovative companies not using AI.
• When AI tools are used in the cloud, the share of revenue from new offerings rises to around 40%.

Despite this promising data, many small and medium-sized enterprises (SMEs) still feel pressure to implement AI without a clear strategy. AI is often touted as the “next big thing,” but it is not a cure-all for business challenges. What is needed are concrete, solution-oriented applications that can solve real problems. Using AI merely to follow a trend can quickly drain resources. Instead, SMEs should focus on identifying where the technology can truly help their operations and bottom line.

Focus on solutions, not the hype

Companies should ask themselves: “Where can AI truly help?” AI is not a magic bullet that solves all of a company’s issues. Rather, it is a tool that needs to be applied meaningfully and purposefully.

SMEs should first identify their pain points. Where do bottlenecks or challenges exist – for example in repetitive tasks, in customer service or manufacturing? Then consider if and how AI can solve these specific problems. It is important to avoid succumbing to the “fear of missing out” (FOMO) and develop strategies and business cases to address specific issues. The technology should serve the business, not the other way around.

Start small and stay focused

For SMEs in particular, it makes sense to start small and focus on a specific area where AI offers real value. A good example is the development of an AI-powered chatbot (available in German) by HeronOS for ITENOS. This chatbot assists in handling customer inquiries and was designed to solve a specific problem – not just to “introduce AI.” As Theodora Wittig from HeronOS put it during a webinar with ITENOS and the eco Association: “AI adoption starts with understanding what redundant tasks you want to offload and what knowledge your company needs to prepare for that.”

It’s also important to recognize that AI won’t replace your human employees. In fact, it should enhance their work by taking over time-consuming tasks so they can focus on more important responsibilities. Using AI to improve customer service or streamline administrative tasks can free up resources, allowing your team to concentrate on higher-value activities.

Compliance: Don’t overlook legal and ethical responsibilities

While the potential of AI is exciting, SMEs need to be cautious, particularly when it comes to handling data. AI systems rely on large amounts of data to work effectively. Dr. Sascha Vanda, a specialist in IT law, highlighted this in the same webinar: “AI users must ensure they have the appropriate rights to use data inputs and recognize that AI-generated outputs may not be protected under copyright law.” It is crucial to be aware of how data is used and to have clear processes in place to ensure compliance with regulations like the EU’s AI Act and the GDPR.

This is particularly important for SMEs without dedicated legal or compliance teams. Be sure to establish internal guidelines that outline how AI should be used and ensure that staff are trained accordingly. This is precisely the type of guidance and support that the eco Association’s “AI in Practice” initiative aims to provide for its members.

eco’s “AI in Practice” initiative

The “AI in Practice” initiative supports members in planning and implementing AI strategies, focusing on three core areas: Data & Services, Infrastructure, and Framework Conditions. AI providers, cloud services, and industry experts jointly evaluate market trends and developments. The aim is for companies to be able to better determine their position in the market, as completely different cooperative business models are emerging due to the evolving requirements from the industry and its value chains.

With the help of practical assistance and learning programs, even employees with little experience with AI can define their technical service requirements and find the right AI tools using the “wizard” (available in German). An interactive process map provides a quick overview of the AI solutions available to address daily work challenges.

eco also provides a training program that teaches employees the basics to enable SMEs to check their applications and processes for trustworthiness and compliance. For stakeholders with a focus on security and compliance, there is a catalog of criteria, resulting from a previous project, that makes it easier to evaluate trustworthy applications.

These approaches have already passed the practical test during the precursor Service-Meister project. Applications from the Service-Meister catalog have been successfully deployed in industry and implemented in preconfigured AI services. One example is the ESW Group, which was able to achieve significant efficiency gains in production planning through the use of AI solutions – starting with simple tools such as Excel and gradually expanding with AI.

Embrace AI strategically to unlock sustainable growth

At the end of the day, AI should not be an end in itself, but a strategic tool to solve real business problems. Companies that implement AI purposefully can increase efficiency, unlock new business models, and drive sustainable growth. The key is to focus on the factors that truly matter – enhancing customer and employee experiences, and securing the company’s long-term viability.

SMEs have a unique opportunity to benefit from AI solutions tailored to their specific needs. By harnessing AI to address their core challenges, they can make smart, future-proof investments that deliver tangible results.

The eco Association’s “AI in Practice” initiative is here to guide members and their customers on this transformative journey. Through practical assistance, learning programs, a catalog of trustworthy AI applications, and a list of proven-and-tested resources on AI for SMEs, the initiative empowers companies to define their requirements and find the right AI tools to drive their business forward.

Christine Neubauer is the project manager for the eco Association's "AI in Practice" initiative. The eco Association offers a view of AI from the perspective of AI providers, data centers, edge services, cloud natives, channel partners, and their customers. The aim is to create manageable and workable concepts for companies.