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Where AI can actually help South African SMEs

AI is becoming easier for small businesses to access. The problem is working out where it is actually useful. For a small business owner, there are already enough things to deal with. Customers are sending WhatsApp messages. Suppliers need to be paid. Staff need to be managed. Sales leads need follow-ups. Then there is the

Where AI can actually help South African SMEs

Where AI can actually help South African SMEs

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AI is becoming easier for small businesses to access. The problem is working out where it is actually useful. For a small business owner, there are already enough things to deal with. Customers are sending WhatsApp messages. Suppliers need to be paid. Staff need to be managed. Sales leads need follow-ups. Then there is the admin that gets pushed to the end of the day. Some of that work can be handled with AI. Not all of it needs to be.

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Start with the work taking up the most time

An SME does not need an AI tool for every job. Look at what employees are doing every week. If someone spends hours preparing the same report, that is worth looking at. If staff answer the same customer questions every day, there may be an easier way to handle them. If salespeople keep forgetting to follow up with customers, that is another problem AI could help with. The starting point should be the work itself. Not the latest AI tool being advertised online.

WhatsApp is already a sales channel

For many South African SMEs, WhatsApp is where customers ask questions, request prices and place orders. It can also become difficult to manage. A customer asks for a quote. Someone responds. The customer says they will think about it. Then the next 20 messages come in. The first customer gets forgotten. AI can help organise these conversations, summarise previous messages and flag enquiries that still need attention. That does not mean the business needs to automate every conversation. It simply gives the sales team a better chance of not losing track of customers.

Customer service does not always need a person

Some customer questions are straightforward. What are your prices? Where do you deliver? What time do you close? How long does delivery take? An AI chatbot can handle some of these questions, particularly after hours. For an SME that cannot afford someone answering messages throughout the night, that can be useful. But there needs to be a way to get through to a person. A customer dealing with a payment problem or a missing order should not have to keep asking a chatbot for help.

Marketing is another area where SMEs can save time

Most small businesses do not have a marketing department. Marketing often gets handled by the owner or an employee who already has several other responsibilities. That makes it easy for social media posts and newsletters to get forgotten. AI can help prepare captions, product descriptions, emails and other basic marketing material. It can also take information about a new product and turn it into several pieces of content. But the business needs to provide the information. If everything comes from an AI prompt, the content can quickly become generic. Customers know when a business sounds like every other company online.

Spreadsheets are another opportunity

A lot of SMEs have their numbers sitting in spreadsheets.

Sales.

Expenses.

Stock.

Orders.

The problem is that not every business has someone who can spend hours analysing those figures. AI can help make the information easier to work through. An owner could use it to compare monthly sales, identify unusual expenses or look at which products are selling faster than others. That does not mean the AI gets to make the decision. The figures still need to be checked. If the business is deciding whether to hire someone, increase prices or take on more debt, the owner needs more than an AI-generated answer.

Give employees a hand with repetitive work

Small teams usually mean people wear several hats. Someone might deal with customers in the morning, prepare quotes after lunch and work on reports before going home. AI can help with some of the repetitive parts. It can summarise a long document. It can turn meeting notes into a list of tasks. It can prepare a first draft of a customer email. It can help organise information. None of this sounds particularly exciting. But saving an employee a couple of hours each week is more useful to an SME than having another impressive AI demo that nobody uses.

Be careful with company information

This is something SMEs should take seriously. An employee might paste customer information into an AI chatbot because they need help writing a response. Someone might upload a contract. Another employee might paste figures from the company’s accounts into a tool. The business needs to know how those services handle the information. Staff should also know what they can and cannot upload. It is better to have that conversation before someone shares information they should not have.

Do not collect AI subscriptions

There is a temptation to keep trying new tools.

One for writing.

One for meetings.

One for images.

One for customer service.

Another one for research.

Each subscription might look affordable on its own.

Together, they can become a decent monthly expense.

An SME should look at what it is actually using.

If a tool saves time or reduces a repetitive job, keep it.

If nobody is using it, cancel it.

AI does not have to become the business

This is probably where SMEs should keep their expectations. AI is not going to fix poor sales, bad cash flow or an unreliable supplier. It will not make customers buy a product they do not want. What it can do is help with some of the work around those problems. It can help an employee get through admin faster. It can help a salesperson keep track of enquiries. It can help an owner make sense of a spreadsheet. It can answer a basic customer question after hours. Those are not huge changes. For a small business, they do not need to be. If AI can save a few hours every week without creating another expensive system to manage, that may be enough.

TechnologyAfrican startups
Vutomi Manzini

Reporting for Business Tech Africa on the funding, tools and strategy shaping the continent's founders and SMEs.

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