Harvard Business School Professor on using A.I. to optimize your small business

Harvard Business School Professor Karim Lakhani shares how small business owners can use AI tools. He talks about how AI can help with customer contact, act as a thought partner, and serve as a super assistant for everyday tasks. He also gives practical advice on which AI tools to start with and how to use them effectively, even if you're on a budget.

Getting Started with AI Tools

For small business owners, the idea of using AI might seem expensive or complicated. But Professor Lakhani says it doesn't have to be. He suggests starting with a few key AI services that are affordable and easy to access.

Key Takeaways

• Start with affordable tools: You don't need expensive hardware. Services like ChatGPT Plus are good starting points.

• Cost-effective: Many of these services cost around $20 a month, making them accessible for small businesses.

How AI Can Help Your Business

Professor Lakhani breaks down the ways generative AI can help small businesses into three main areas:

1. Consumer Contact: AI can help you communicate better with your customers. This includes things like writing emails, text messages, or social media posts.

2. Thought Partner: AI can act as a partner to help you brainstorm new ideas for your business. It can help you think through strategies and come up with creative solutions.

3. Super Assistant: AI can take care of many routine or tedious tasks, freeing up your time to focus on more important things.

AI as a Thought Partner

One of the most powerful ways to use AI, according to Professor Lakhani, is as a thought partner. He explains that AI isn't just for searching for facts; it's for helping you think and generate new ideas.

He shared an example of a venture capitalist who used AI to help immigrant business owners in lawn care and fence care. These owners often had trouble with English communication. With AI, they could put their rough English into a tool like ChatGPT and get perfectly worded messages for their customers. This gave them a new "superpower" in communication.

This idea extends to many other areas for small businesses. For example, if you need a social media strategy, AI can help you come up with ideas for tweets, Facebook posts, or TikTok videos. It's not about getting factual information, but about collaborating with the AI to generate creative and practical ideas that you can use right away.

Choosing the Right AI Tool

If you're on a tight budget, Professor Lakhani recommends starting with ChatGPT Plus. While Bing Chat is a free option, ChatGPT Plus offers a good balance of features for its cost.

It's important to remember that AI tools are not always 100% accurate, especially when it comes to factual information. For information search, you should still use traditional search engines like Google and verify your sources. However, for tasks like generating ideas, writing content, or brainstorming, AI can be incredibly useful, even if the initial output isn't perfect. The goal is to use it as a tool to lower the "cost of cognition" and help you learn and develop new ideas.