Artificial Intelligence (AI) is no longer a futuristic concept reserved for tech giants; it’s now embedded in the everyday tools SMEs use to run their businesses. From automating routine tasks to enhancing decision-making, AI is transforming how we work, communicate, and build businesses.
For SMEs, the question isn’t “should we use AI?”. It’s “where can AI help us work smarter?”.
Many software platforms now include AI features by default. For example, accounting software like Xero and MYOB uses AI to categorise expenses, detect duplicates, and suggest matches. Microsoft Excel offers predictive forecasting, while Outlook drafts email replies and schedules meetings automatically. You may already be using AI without even realising it.
Below are five practical ways AI is already delivering value and that can be easily used by SMEs:
1. Standalone AI tools (e.g. ChatGPT, Copilot, Claude)
AI assistants like ChatGPT, Microsoft Copilot, and Claude can help draft reports, summarise meeting notes, generate emails, and even answer tax or HR questions. Copilot integrates directly into Microsoft 365 apps, offering support within Excel, Word, Outlook, and Teams. These tools can significantly boost productivity if paired with human oversight.
2. Marketing and design
Platforms like Adobe Firefly allow businesses to create social media graphics, infographics, and marketing materials on demand, reducing design costs and turnaround times.
3. DIY AI with low-code platforms
Microsoft Power Platform makes it possible to build AI-powered workflows without writing code. For example, you can create a tool that scans incoming PDFs, extracts key figures, and updates your workpapers or reporting system automatically.
4. Custom AI agents in Microsoft Copilot Studio
One of the fastest-growing trends is building custom AI “copilots” to handle specific tasks like chasing overdue invoices, compiling monthly reports, or answering client queries. These agents work within familiar tools like Teams, Excel, and Outlook, operating 24/7.
5. Agentic AI: the next evolution
Unlike earlier tools that require prompts, agentic AI behaves more like a digital employee. It sets goals, makes decisions, acts across systems, and loops back for feedback without constant instruction.
But what about the risks?
AI may be powerful, but it isn’t infallible. It can fabricate facts or reflect biased data. That’s why it’s essential to combine AI with strong governance, staff training, and review processes. Also, be mindful of where your data is stored, especially when using free tools, to ensure compliance with the Privacy Act 1988. By laying the groundwork now, your business will be well-positioned to take advantage of AI’s next frontier, before it becomes the norm.