By: Brendan Hastie, Business Adviser for Small Business Research + Enterprise Centre
Within the past three years, the advancement of large language models (LLM) and artificial intelligence have revolutionized how we engage with the world. Whether it be through the optimization of operational processes or our interactions with chatbots, the emergence and subsequent ubiquity of AI has generally been well-received within the business community. However, despite the rapid integration of this technology into business practices and the increase in AI-based start-ups, it is essential that business owners do not become too reliant on its ‘promised’ utility. There is a happy medium between failing to adapt to emerging trends and allowing for an external source to rob you of the creativity, ingenuity, and determination that is so essential to being a small business owner.
With that in mind, I believe it would be useful to highlight some of the drawbacks that AI can have on founders, entrepreneurs, or anyone within our SME community.
Market Research
LM platforms are notorious for giving inaccurate information, sometimes referred to as ‘hallucinations’ – I make this a key point to all my clients and this is where market research can change the game.
“Hallucinations” are a relatively well-known phenomenon, as even OpenAI published a research paper in early September that matter-of-factly answered the question as to why chatbots tend to put out inaccurate information. While some of this may be related to the capacity of the AI engine itself, or what prompts the user is inputting, any founder or business owner trying to conduct market research should not be relying on something where the company openly admits the information may be unreliable.
Instead, I always refer clients to well-known, reputable, and sourced databases that can be trusted to provide up-to-date information that has been verified through multiple channels. Some of these databases are available at the Small Business Research and Enterprise Centre, including FAME, IbisWorld, GlobalData, and more. If a business owner needs to know the projected growth of their industry over the course of the next five years, or is looking to expand into international markets, it is vital for them to have the correct data to help inform those choices. Otherwise, it can lead to poor strategic planning and decision making if armed with the wrong information. The correct information is out there, and our business community is better served if it can trust the sources where they are getting their data from.
Decision Making
This past summer, MIT’s media lab put out a study that should warrant significant attention, especially as AI usage continues to rise. The study, aptly titled “Your Brain on ChatGPT: Accumulation of Cognitive Debt when Using an AI Assistant for Essay Writing Task”, wanted to identify the negative drawbacks that ChatGPT can have on our brainpower and critically think. The study divided 54 individuals into three groups: one that can use ChatGPT, one that was limited to Google Search, and the final group that used nothing at all. The results were quite stark, as the group that used ChatGPT ‘consistently underperformed at neural, linguistic, and behavioural levels’ and demonstrated ‘low executive control and attentional engagement.’ The study concluded that the convenience of ChatGPT ‘came at a cognitive cost, diminishing users’ inclination to critically evaluate the LLM’s output or opinions.’ This is not to disparage entrepreneurs who use ChatGPT or other LLMs to help them brainstorm or to assist with some more technical tasks. However, the data is clear that ChatGPT and AI reliance has a corrosive and deleterious effect on our ability to think.
Business owners and founders need to be agile, adaptable, and able to make decisions quickly in order stay ahead of competitors, identify potential areas of growth, or even launch a creative marketing campaign. It would be to your detriment to outsource the very intelligence and originality that led you to start a business, and it is not something that should be disposed of in the name of convenience. Luckily there are alternatives that I believe are even better than any LLM. We speak often about the need to network, but there are experts out there across many different sectors and within your industry that can help you build your business even more. Attending workshops, seminars, and networking events can give you the opportunity to think of questions or generate novel insights in real time, while getting advice or support from other founders and industry leaders that can help you take that next step as an entrepreneur.
AI “Slop
When speaking with business owners, the one point I continue to emphasize is that consumers are desperate for brands that are authentic or genuine.
In a time when everything feels so saturated, synthetic, or artificial, pumping out text or images that were made with low-effort AI prompts risks alienating current and potential customer bases. It tells your customers that you are not willing to engage with them on an equal level, that their time is not worth your effort, and that you are more concerned with the quantity of content you are putting out instead of the quality. Additionally, when creating content for LinkedIn, Instagram, TikTok, or other social media platforms, you should be thinking about why your customers would want to click on your page, read your post, or potentially visit your website to make a purchase. If your content is indistinguishable from other AI-slop that is dominating the internet right now, you are much less likely to stand out within an already overcrowded ecosystem.
Active engagement is much more conducive to success than passive views, so be purposeful in how and why you are creating content. Some entrepreneurs might struggle with this aspect of the business, but there are strategists, marketing professionals, mentors, and other business owners who can provide the right type of assistance that can make your content that much better. Occasionally using AI to improve or edit your content can be efficient and even effective, but be leery of its capacity to create suitable content that promotes your brand in a thoughtful and genuine way.
Conclusion
At risk of sounding like someone who refuses to keep up with our new world, I think it is important to recognise the potential capabilities that artificial intelligence can provide start-ups and more established businesses while also identifying the potential risks that it may cause.
Chatbots have the ability to generate information at the click of a button, but is that information going to be correct? Will you rely on it so much that it destroys your ability to think? What if the content it generates diminishes your brand identity and your content gets buried under a mountain of AI-generated posts? These are questions that are worth keeping in mind when undergoing the time-consuming process of starting and running a business, and you are not alone. This technology is accessible for your competitors as well, so they may also be utilizing it in the same capacity. However, if you really want to stay ahead of the competition, you should refer to verified data sources, build up your network, and develop an authentic brand identity that can cut through the slop and help you succeed.
*We strive to do our best when supporting small business and their growth. Our business databases can give you information and data that can help you with advertising, market research, company information, and industry factsheets. If you have already taken the plunge, we would love for you to join us at a seminar, our workshops cover digital marketing, business model canvas and planning, demystifying taxes and intellectual property to name a few. Visit our events page or website for more information.
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