WTI2025: Opportunities are Everywhere

AI in SMBs in New Zealand (and the world) in 2025

This is part of a series of articles I’m writing on the opportunities for New Zealand in the AI Space. Part of this article is free - as they always will be, however, to get the rest of the insights all I ask for is the equivalent of a coffee a month

The opportunities for small and medium-sized businesses, is rapidly transforming, driven by the integration of artificial intelligence. The opportunities for SMBs, is limited by imagination, for example I built a Copilot Studio agent recently that uses a SharePoint site as its knowledge repository, and it can now answer questions in an intelligent way on policy and process for every employee 24/7.

One of the most forward-thinking opportunities lies in the concept of the "Frontier Firm" the Microsoft puts forward in its 2025 Work Trend Index. These are businesses that seamlessly integrate AI into their operations, creating a hybrid workforce of humans and AI agents. This model allows SMBs to scale rapidly, operate with agility, and generate value faster than ever. In New Zealand, where productivity indexes point to an all time low, this is the excellent opportunity for a business leader to take advantage of, the potential for SMBs to become Frontier Firms is immense. By adopting AI, these businesses can enhance their operational efficiency, reduce costs, and improve customer experiences.

A less obvious opportunity is the role of AI in bridging the capacity gap. Many SMBs struggle with limited resources and workforce constraints. AI can act as a digital labour force, taking on repetitive and time-consuming tasks, thereby freeing up human employees to focus on more strategic and creative activities. This not only boosts productivity but also enhances job satisfaction and employee retention. For instance, AI can handle customer service inquiries, manage inventory, and even perform market analysis, allowing SMBs to operate with the sophistication of much larger enterprises.

Counter opportunities also exist in the realm of AI-driven innovation. While AI can automate many tasks, it also opens new avenues for creativity and innovation. Businesses can use AI to develop new products and services, explore untapped markets, and create personalised customer experiences. In New Zealand, where the market is small but highly competitive, the ability to innovate quickly and effectively can provide a significant competitive edge.

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15 Opportunities for SMBs in New Zealand and the World in 2025

Customer Service Automation: Implementing AI chatbots can revolutionise customer service for SMBs. These chatbots are not like the horrible ones that have littered the Internet over the past 5-10 years. You can load your knowledge base in it with a few clicks and then it can create dynamic answers based on the customers discussion. This not only enhances customer satisfaction but also allows businesses to operate more efficiently.

Inventory Management
AI can significantly improve inventory management by predicting inventory needs based on sales data. all you need is your data in an AI accessible way (hint: an excel spreadsheet). This reduces the risk of overstock and stockouts, ensuring that you can meet customer demand without tying up capital in excess inventory. For businesses, which often operate with limited storage space and resources, inventory management augmented with AI could be the game changer, optimising stock levels whilst improving cash flow.

Market Research
Deploying AI tools to analyse market trends and consumer behaviour can provide you with valuable insights. The Deep Research mode is all you need. These insights help businesses identify new opportunities and refine their marketing strategies. AI-driven market research can speed up decision making and give SMBs the edge they need to stay ahead of the competition and adapt to changing consumer preferences.

Financial Forecasting
AI can enhance financial planning and forecasting, improve accuracy and helping businesses make informed business decisions. By analysing historical data and market trends (hint: excel, word documents, are all perfectly fine here). AI can predict future financial performance, allowing businesses to plan strategically and mitigate risks.