By Julian Bowman, MD of riivo UK

Now more than ever, Artificial Intelligence (AI) is revolutionising the way we work. Be it through process automation, enhanced decision-making, or fostering innovation, embracing AI and digital transformation opens a door for small and medium-sized enterprises (SMEs) to increase productivity and competitiveness.

But why AI specifically for SMEs? SMEs face unique challenges: limited resources, long and laborious manual administrative burdens, and a reliance on legacy systems that hinders rather than helps. Adopting AI technologies can help bridge these gaps, and empower them to not only operate more efficiently, but also have a fighting chance against larger enterprises.

We explore the current landscape of AI adoption among SMEs, the benefits and challenges of adoption, and how SMEs can leverage AI to drive growth and efficiency.

The Current State of AI Adoption in SMEs

Recent studies indicate a growing interest in AI among SMEs. According to McKinsey's 2024 report, AI adoption has surged globally, with 72% of organisations implementing AI in some capacity, a significant increase from previous years.

Many large companies are doing great things with AI:

JPMorgan, UBS and other Wall Street firms are developing AI platforms to carry out analysis, do trades and give advice to their clients.
Taco Bell uses artificial intelligence to listen in on an employee’s conversations with customers.
Walmart is developing a massive AI system to help shoppers choose products.

But all of these great AI advancements cost a fortune. How can SMEs even hope to keep up?

According to a recent report, more than half of the UK’s small and medium-sized businesses (SMBs) are experimenting with AI tools for tasks like content generation and customer service. However, comprehensive adoption across core business operations remains limited. Concerns about data quality, system reliability, and security are prevalent, causing some SMEs to proceed cautiously.

However, the tremendous benefits of implementing AI is reason enough for modern business owners and managers to seriously consider.

Why SMEs Should Embrace Artificial Intelligence This Year

Implementing AI offers numerous advantages for SMEs. Here are some.
**Enhanced Efficiency**: AI automates routine tasks, reducing manual workload and allowing employees to focus on strategic initiatives. For instance, AI-powered chatbots can handle customer inquiries, streamlining communication and improving response times.
**Improved Decision-Making**: AI analyses large datasets to provide actionable insights, aiding in strategic planning and operational decisions. This data-driven approach enables SMEs to respond swiftly to market changes and customer preferences.
**Cost Savings**: By automating processes, AI helps reduce operational costs. SMEs can achieve more with fewer resources, reallocating savings to other critical areas of the business.
**Competitive Advantage**: Early adopters of AI can differentiate themselves in the market, offering innovative products and services that meet evolving customer demands.

““We have over 20,000 customers and dealing with their day-to-day queries is labour-intensive. AI will enable us to remove a lot of the manual input required here.””

— Aaron Mooney, CEO of Action24

Why Many SMEs Haven’t Yet Implemented an AI Solution

Despite the many benefits, SMEs have a few challenges when it comes to adopting AI. Here are some.
**Data Quality and Management**: Effective AI systems require high-quality, well-organised data. Many SMEs struggle with data silos and inconsistencies, hindering AI implementation. Manual admin, spreadsheets, and paperwork are not the best foundation for a data-driven business. This can seem overwhelming, and that the chasm from where they are to where they want to be is far too wide.
**Skills Gap**: Implementing AI solutions take specialised skills that may be scarce within SME teams. Recruiting or training personnel in AI technologies can be resource-intensive, not to mention expensive.
**Integration with Existing Systems**: Many SMEs rely on legacy systems that may not seamlessly integrate with modern AI solutions. These stand-alone, outdated systems often pose technical challenges during implementation, and the possible disruption to operations hardly seems worth it.

**Not Sure Which AI Tool To Use:** According to recent findings, the main reason many SMEs have not yet adopted AI is a lack of understanding or even awareness about which AI tool is relevant to their business. Additionally, AI has so been built up in people’s minds as futuristic tech that only solves complex problems, many business owners discount it as relevant before they even try.
Image: Entrepreneur AI Report

riivo's Accelerated Approach to AI Integration

Now, if you’re reading this and you’re a business owner or manager, you might feel rather overwhelmed. You desperately want the benefits of AI in your business, but may be feeling uncertain about the right approach for your business. And you’re likely not looking forward to the long, bumpy road ahead to get there.

At riivo, the fast, affordable, local digital transformation and AI solutions partner, we understand the unique needs of SMEs. Our innovative low code and AI strategies make it possible for us to tailor AI solutions to SMEs faster, and more affordably than other agencies. This is how our AI-centric approach serves SMEs well.

Accelerated Solution Delivery: Utilising low code platforms, we develop and deploy AI applications up to five times faster than traditional methods. This agility enables SMEs to quickly realise the benefits of AI without extensive development timelines.
Customised AI Agents: We specialise in creating AI Agents that automate administrative tasks, integrate disparate systems, and enhance data clarity. Our solutions are designed to fit seamlessly into existing workflows, minimising disruption and maximising efficiency.
Comprehensive Support: From initial consultation to ongoing maintenance, we provide end-to-end support, ensuring that AI solutions continue to meet evolving business needs. Our team integrates with yours to bridge the skills gap, empowering your teams to leverage AI effectively.

How You Can Use Tailored AI Solutions in Your SME Right Now

Aside from using Google Gemini or ChatGPT, AI has other wonderful benefits for small to medium sized businesses.

Here are some of the ways our custom AI solutions make things more productive and more profitable for SMEs:

**Improved Sales**: AI analyses sales data to identify trends and opportunities, enabling targeted strategies that drive revenue growth.
**Effortless Document Management**: AI is able to carry out intelligent document management - the ability to read documents and perform actions after that. Or, we can set it to extract the read information and place it in a database.
**Happier Customer Services**: AI-powered chatbots and virtual assistants provide instant support to customers, improving satisfaction and loyalty.
**Smooth Operations**: Automating inventory management, order processing, and supply chain logistics reduces errors and accelerates operations.
**Error-free Financial Management**: AI assists in budgeting, forecasting, and financial analysis, providing real-time insights into financial health.
**Stronger Bottom Line**: Reduced human error, less admin, happier clients, and more productive teams mean your overheads are reduced, your sales are up, and your profit margins increase.

How SMEs Can Adopt AI: A Strategic and Practical Approach

Now we get to the nitty gritty.
**If you don’t want to do this alone, then skip this part and go straight to the end where we help you with all of this.**
Because, let’s face it, adopting AI is not a one-size-fits-all process.

SMEs must take a structured, strategic approach to ensure successful implementation.

The journey begins with a clear vision, followed by the selection of appropriate tools, integration with existing systems, and ongoing optimisation. Here’s how SMEs can effectively adopt AI, step by step.

1. Define Your AI Strategy

Before implementing AI, first understand what you aim to achieve. AI should not be adopted for the sake of innovation alone—it must serve a clear business purpose.

Identify Pain Points – Assess existing inefficiencies, such as manual admin overload, slow decision-making, or data silos.
Set Clear Objectives – Whether it’s improving customer service, automating financial processes, or enhancing marketing efforts, defining measurable goals will guide AI adoption.
Evaluate Readiness – Consider your current tech stack, data quality, and internal skill sets to gauge how seamlessly AI can be integrated.
Rope riivo in early - We help SMEs with all of the above so that the transition to digitalisation is smooth, less disruption, and more streamlined. We assess business processes, identifying AI-driven opportunities, and design a roadmap that aligns with business goals.

2. Choose the Right AI Solutions

With a strategy in place, the next step is to select AI solutions that align with your specific needs. There are two main approaches:

A. Off-the-Shelf AI Solutions

Many cloud-based AI tools offer plug-and-play functionality, allowing SMEs to integrate AI with minimal technical expertise.

Customer Service & Sales AI

Chatbots: Zendesk AI, Drift, HubSpot AI Chatbot
CRM AI Assistants: Salesforce Einstein, Zoho AI

Marketing & Content Generation

Copywriting AI: Jasper, Copy.ai
SEO & Analytics: Clearscope, Surfer SEO

Operational & Financial Automation

Bookkeeping & Finance: Xero AI, QuickBooks AI
Supply Chain & Inventory: NetSuite AI, TradeGecko

These tools provide fast implementation but may not always be flexible enough to cater to an SME’s unique workflows.

B. Custom AI Solutions (The riivo Approach)

If your business needs AI to adapt to your specific processes rather than the other way around, custom AI solutions are the answer.

riivo specialises in developing bespoke AI solutions that integrate seamlessly into your existing workflows. By leveraging low-code platforms, we build tailored AI applications that automate admin, optimise data handling, and drive smarter decision-making—without the need for lengthy and expensive projects.

Some of the custom AI applications riivo develops include:

AI-driven invoice processing – Automating invoice capture, approval, and reconciliation.
Intelligent workflow automation – Eliminating repetitive tasks, such as scheduling, reporting, and data entry.
Custom AI-powered dashboards – Providing SMEs with real-time insights on performance, sales trends, and operational efficiency.
AI-enhanced customer engagement – Personalising customer interactions through data-driven automation.

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3. Ensure Seamless Integration with Existing Systems

One of the biggest hurdles SMEs face in AI adoption is integrating new tools with their current systems. Many businesses still rely on legacy software, creating barriers to AI implementation.

The riivo Solution: AI as a Bridge

riivo builds AI solutions that connect and enhance existing systems, rather than forcing SMEs to abandon their current tech stack. Whether an SME uses SAP, Sage, Microsoft Dynamics, or older legacy software, we design AI integrations that modernise operations without disrupting business continuity.

AI Middleware – Acts as a layer between existing systems, pulling data and providing AI-driven insights.
Data Cleaning and Structuring – AI-powered tools that organise unstructured data, making it usable for automation and decision-making.
API-Based Integrations – Enabling AI tools to communicate with CRMs, accounting software, and ERPs.

By ensuring smooth integration, riivo helps SMEs harness AI without the hassle of system overhauls.

4. Develop AI Literacy and Skills Within the Organisation

AI adoption is not just about technology—it’s about people and processes. SMEs must ensure their teams are comfortable working alongside AI tools.

Internal AI Training – Educate employees on AI capabilities, limitations, and best practices.
Change Management – Encourage a mindset shift where AI is seen as a productivity booster rather than a job threat.
AI Governance and Ethics – Implement policies to manage data privacy, bias, and transparency in AI-driven decision-making.

5. Continuously Monitor and Optimise AI Performance

AI implementation isn’t a one-time event; it requires ongoing refinement.

Performance Tracking – Use AI dashboards to monitor success metrics like cost savings, productivity gains, and customer satisfaction.
Iterative Improvement – Regularly update AI models to adapt to changing business needs.
Scaling AI Capabilities – Start with a single AI solution, then expand to other areas (e.g., moving from AI-driven customer service to AI-powered sales forecasting).

The riivo Advantage: Accelerated AI That Works for SMEs

Unlike large enterprises with dedicated AI teams, SMEs need solutions that are accessible, cost-effective, and easy to implement. riivo bridges the gap like this.

Tailored AI solutions that match SME-specific needs
Fast, scalable AI deployment via low-code technology
Seamless integration with existing software and legacy systems
Expert support to upskill SME teams and drive AI adoption

When you partner with us, you can embrace AI strategically and effectively, and transform operations without the complexity, disruptions, or high costs associated with traditional AI adoption.

It Starts Here. Take the First Step with riivo

AI adoption is not something for tomorrow. It is right now. It is a present-day necessity for SMEs who want to compete, innovate, and grow. It's also nothing to fear. Not when you have a trusted digital transformation partner at your side.

Whether it’s automating repetitive tasks, optimising customer engagement, or gaining real-time business insights, AI can be the key to unlocking efficiency and profitability.

With our expertise in custom AI solutions and low code development, you get the benefits of AI without the headaches of traditional IT overhauls.

Ready to explore AI for your business? Contact riivo today to discover how our AI solutions can transform your SME into an agile, data-driven business.

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FAQs

How can AI help SMEs?

AI levels the playing field for SMEs, allowing them to compete with larger enterprises without needing enterprise-scale budgets. From automating repetitive tasks to providing real-time business insights, riivo’s bespoke AI solutions enhances productivity, reduces costs, and improves customer experiences. With AI-powered decision-making, businesses can operate smarter, faster, and with greater agility.

How can small businesses use artificial intelligence to their advantage?

At riivo, we can develop and deploy personalised AI solutions that allow you to focus on more productive work.

Automate Repetitive Tasks – AI chatbots handle customer queries, AI tools automate invoicing, and workflow automation streamlines operations.
Enhance Customer Experiences – Personalised marketing, AI-driven product recommendations, and predictive analytics help SMEs deliver tailored experiences.
Data-Driven Decision Making – AI analyses vast amounts of data to identify trends, forecast demand, and optimise pricing.
Fraud Detection and Security – AI protects against cyber threats and detects fraudulent transactions.
Improve Marketing and Sales – AI-powered CRM tools score leads, optimise ad spend, and improve conversion rates.

How to use AI to grow a small business?

At riivo, we customise and tailor AI solutions to help your small business grow. Plus, we do it faster and more affordably than others.

Optimise Operations – AI can streamline inventory management, automate scheduling, and enhance logistics planning.
Boost Sales & Retention – AI-powered chatbots and sentiment analysis tools help engage customers 24/7 and improve retention strategies.
Cut Costs – AI automation reduces manual work, freeing up teams to focus on higher-value tasks.
Enhance Decision-Making – Predictive analytics helps SMEs anticipate market shifts and consumer behaviour.

How can artificial intelligence be applied in a business?

At riivo, we ensure AI solutions are easy to use for your daily tasks. Here’s where it can be applied:

Marketing & Sales – AI-generated content, targeted ads, automated email campaigns.
Customer Service – AI chatbots, virtual assistants, sentiment analysis.
Finance & Operations – AI-driven bookkeeping, fraud detection, procurement optimisation.
Product Development – AI-powered analytics to identify customer needs and streamline innovation.

How SMEs Can Accelerate AI Adoption to Boost Growth and Efficiency