• Elisabeth Kant, Head of Data Science at SumUp


• 19.10.2023 11:15 am
#fraudprevention

From social media to payment devices; Artificial Intelligence is a technology present in many tools that merchants have been using on a daily basis for years. However, in 2023 we have seen a revolution resulting from the spread of generative AI tools such as ChatGPT, Bard and Midjourney. Therefore, now more than ever, it is crucial for business owners to understand its uses. 

With many Small and Medium Enterprises (SMEs) still recovering from the cataclysmic effects of the pandemic, business owners have begun to increasingly embrace a weapon in their arsenal. In the past year alone, artificial intelligence has emerged to become an integral part of business activity and a cornerstone in supporting effective communication. With merchants often pressed for time and already working long hours, the technology can play a key role in supporting hard working business owners.   

Around 15% of all UK businesses have adopted at least one AI technology (translating to 432,000 companies). Whilst the IT and telecommunications (30%) and legal sectors (29%) currently have the highest rate of adoption, sectors such as hospitality and retail have begun to embrace the technology also. With more than 10% of all hospitality and retail businesses now using AI, it is evident that merchants are beginning to better understand its uses, and how they can leverage the technology to support their businesses.   

Against this backdrop, these are five ways in which AI can be used by SMEs to help them save time, and ultimately expand their business. 

Firstly, generative AI, like ChatGPT and Bard, can support busy merchants by creating automatic written content. ChatGPT, for instance, can devise restaurant names based on specific cuisines or write descriptive copy for menus. Utilising AI for written content such as blog posts and website copy not only streamlines the content creation process but ensures consistency and allows merchants to tailor accurately for a specific target audience.

Visuals are also an essential component of modern brand communication. While more complex than text-focused counterparts like ChatGPT, text-to-image tools such as Midjourney, offer invaluable support for retailers, entrepreneurs, shopkeepers and merchants. 

AI tools can also provide support for merchants looking to appeal to foreign markets. Translation services such as DeepL - beyond simply translating -  enables precise localisation and adapts content in line with cultural nuances such as idiomatic expressions and local sayings and slang. By improving marketing materials, social media content, websites and menus that are read and interpreted by locals and tourists, AI can benefit shops and merchants looking to attract business and expand their market beyond their local areas. 

Chatbots are another widely deployed AI use case, playing a key role in  enhancing customer interaction for merchants, especially those with online storefronts. Whether this is in the form of customised messages on ecommerce sites, or targeted content promotions and new product announcements, chatbots are a clear demonstration of how the rapid development of AI is transforming communication across digital platforms - drawing brands and users closer together.

Finally, AI plays a key role in fraud prevention. Businesses can opt for payment devices equipped with anti-fraud tech that is able to detect and uncover anomalous patterns and analyse user behaviour. Often, these devices use authentication and machine learning to harness biometric data (such as fingerprints, facial recognition, or voice analysis) which strengthens banking security. Machine learning further alerts users of account take-overs by detecting unusual and suspicious behaviours, preventing credit card fraud and other risks. Crucially, these tools monitor transactions in real-time and are able to adapt continuously in response to new and evolving threats. 

The data clearly speaks for itself; AI is a transformational force that has the power to reshape the way small businesses operate and communicate. However, this does not mean precautionary measures should be ignored. Business owners should take well-informed decisions about the nuances of AI to leverage its benefits whilst also mitigating potential risks. It should also be said that, while promising, the emergence of AI-driven technologies do not come without some pitfalls. Referred to as, “hallucinations”, is when an AI model makes up information or facts that aren’t based on real data or events, underscoring the critical need for ethical and compliance governance. However, the current AI boom will undoubtedly continue to unfold and present small businesses with an unprecedented opportunity to innovate, grow and succeed in the digital economy.