On August 26, 2024, I, Masahiro Chaen, CEO of Digirise Inc., was invited to a regular meeting of the Gifu Prefecture Small and Medium-sized Business Association South Branch to hold a seminar on the use of generative AI. I have developed several AI-related services, including the AI chatbot "AideX" and the AI language learning tool "AI Conversation," and have appeared on many media outlets, including TBS Television and ABEMA. At this seminar, I spoke about the possibilities and strategies for using AI in small and medium-sized enterprises, based on my experience and knowledge.

In this article, we will provide a detailed introduction to the content of the seminar and explore the challenges and possibilities of AI use by small and medium-sized enterprises, which emerged from the question and answer session with participants.

Chapter 1: A major shift brought about by generative AI

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1-1. Small and medium-sized enterprises at a turning point

At the beginning, I pointed out that we are currently at a major turning point with the emergence of generative AI technology.

"The evolution of generative AI technology is a great opportunity not only for large companies but also for small and medium-sized enterprises. However, in order to ride this wave of change, nothing will come from just waiting. It is essential that you proactively understand AI and take it into use."

1-2. Discover the potential of AI

I explained the potential of AI using specific examples.

"For example, AI can be used in a variety of situations, such as automating customer support, formulating marketing strategies, and generating ideas for product development. The important thing is not to ask 'what AI can do,' but to ask 'how can we use AI to solve our company's problems?'"

Chapter 2: Actual use of AI in small and medium-sized enterprises

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2-1. From business efficiency to innovation

I have broadly divided the areas in which small and medium-sized enterprises can utilize AI into three categories.

1. Business efficiency: Automating routine administrative tasks
2. Decision support: data analysis and market forecasting
3. New business creation: Development of new services using AI

"Especially for small and medium-sized enterprises, it is realistic to start with improving business efficiency. For example, I recommend starting in areas where the effects are immediately visible, such as using AI to create documents or automate customer support."

2-2. Introduction of success stories

The seminar also introduced examples of small and medium-sized enterprises that have achieved success by using AI.

"A manufacturing company in Gifu Prefecture introduced an AI-based quality control system and succeeded in reducing its defective product rate by 30%. In another example, a retail company optimized inventory management based on demand forecasts using AI, significantly reducing waste."

Through these examples, I have demonstrated the concrete benefits of using AI in small and medium-sized enterprises.

Chapter 3: Overcoming the barriers to AI use

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3-1. Challenges in implementation

There are various barriers to the adoption of AI. I have identified the following three as the main challenges:

1. Cost concerns
2. Lack of technical knowledge
3. Security concerns

"These challenges pose significant barriers to AI adoption, especially for small and medium-sized businesses. However, with the right strategy and knowledge, these challenges are entirely surmountable.

3-2. Phased implementation strategy

I have proposed a phased implementation strategy to overcome these challenges.

1. Get started with free or low-cost AI tools
2. Developing core personnel for AI utilization within the company
3. Gradually expand the scope of use while taking security measures

"The important thing is to accumulate small successes. Rather than aiming for a large-scale company-wide implementation, it is wise to start with specific departments or operations, and gradually expand as you experience the effects."

Chapter 4: Coexistence of AI and humans

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4-1. What AI can do and what only humans can do

There are also concerns that as AI advances, human jobs may disappear. In response to this, I said the following:

"AI can certainly automate many tasks, but it does not take away human jobs. Rather, it is a tool that enables humans to focus on more creative tasks. For example, data entry and simple analysis can be left to AI, and it is humans' role to create strategies based on the results."

4-2. The type of talent needed in the AI era

Regarding the type of talent needed in an era where we coexist with AI, I said the following:

"In the age of AI, what's needed is not just the technical ability to use AI, but the ability to correctly interpret the results of AI and make decisions based on that. In addition, human abilities that AI lacks, such as creativity, empathy, and a sense of ethics, will become more important."

Chapter 5: Q&A with participants

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In the second half of the seminar, he answered questions from the participants and talked about more specific points on using AI. Here we introduce some of the most memorable Q&A sessions.

Q1: Is there a way for even small businesses to quickly adopt AI?

A1: "Yes, there is. For example, you can start by using a free AI tool like ChatGPT to help you with your daily document creation and idea generation. You can experience the potential of AI without incurring any costs."

Q2: How do we address security concerns when implementing AI?

A2: "Security is certainly an important issue. First of all, you should be very careful about the information you input into the AI, and avoid including confidential information. Also, when selecting an AI tool, it's important to thoroughly check its security measures. Recently, AI tools that operate completely offline have appeared, so one way to go about it is to use those."

Q3: How should employees be trained when introducing AI?

A3: "Employee understanding and cooperation are essential to introducing AI. I recommend that you first provide training to deepen basic understanding of AI, and then gradually provide practical training on using AI in actual work. It is also important to share success stories of AI use within the company to increase motivation."

Q4: What do you think about the potential for new businesses using AI?

A4: "I think there is great potential for new businesses that use AI. For example, you could provide an AI prediction service that uses your company's data, or develop new products that incorporate AI technology. What's important is to consider how to combine your company's strengths with AI technology. It would be a good idea to consider how you can incorporate AI into your existing business, or whether you can think of an entirely new service that has AI at its core."

Chapter 6: Future outlook and course of action

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To conclude the seminar, I outlined the future outlook for AI use in small and medium-sized enterprises and some concrete guidelines for action.

6-1. The future of AI

"The evolution of AI will continue to accelerate, and the scope of its use will continue to expand. I believe that AI will become an important tool for strengthening competitiveness, especially for small and medium-sized enterprises. Small and medium-sized enterprises, which are able to make decisions more quickly than large companies, have the potential to quickly adopt AI and create new value."

6-2. Specific guidelines for action

Finally, I offered the following guidelines to the participants:

1. First, try using familiar AI tools
2. Mapping your company's challenges to AI opportunities
3. Start introducing AI with small projects
4. Continually learn and gather information
5. Sharing AI use cases within the company and fostering a culture

"The use of AI is no longer an option; it is a necessity. However, there is no need to rush. The important thing is to make steady progress, one step at a time. I hope that today's seminar will serve as an opportunity to take the first step toward using AI."

Conclusion

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This seminar shed light on the potential and challenges that generative AI technology brings to small and medium-sized enterprises. AI is certainly a powerful tool, but to use it effectively, it is essential to have a deep understanding of your company's challenges and the insight to discern the characteristics of AI.

As I have repeatedly emphasized, AI will not take away jobs from humans, but rather will be a powerful ally in unleashing human creativity and creating new value. Small and medium-sized enterprises in particular will need to embrace this new "employee" called AI and grow together with it.

The journey of AI utilization has just begun. It is expected that participants will use this seminar as a starting point to develop and implement their own AI utilization strategies. And beyond that, new business horizons will unfold in which AI and humans co-create.