AI in the Philippines: Bridging the Gap Between Local SMEs and Global Markets
SMEs in the Philippines account for 99% of businesses. Today, they are proving to be the backbone of the Philippine economy and contribute to both GDP and local employment. However, despite their economic importance, they face challenges while competing with large enterprises due to limited resources, access to technology, and global market reach.
Artificial Intelligence (AI) has emerged as a game-changer in the last decade offering automated tools to empower SMEs to transcend traditional limitations and compete internationally. AI and automation have the power to transform any small business and equalize them to global entities by streamlining their business processes. From operation to marketing, research, and decision-making, AI-powered tools can do everything- that too by analyzing customer behavior and demands in real time. AI tools for businesses are smarter, and faster, and work with a global perspective.
Read on to learn more about how AI bridges the gap between local SMEs and global markets, and how technology partners like Lgorithm Solutions can help SMEs overcome the challenges faced, empowering them to succeed in an increasingly competitive world.
Key Benefits of Using AI for Business in the Philippines
As AI adoption continues to increase in the Philippines, it has increased opportunities to grow and expand businesses of all sizes to a bigger market and compete with MNCs easily. AI has helped many brands with smart solutions to overcome operation discrepancies, offer customer support, improve management, and enhance other facets of businesses. The key advantages of AI in business are:
Optimized Operations with AI
Operations are one of the major pillars of every business and with AI, SMEs can now optimize their process, and improve productivity without additional human resources costs and overheads. AI-based systems can easily automate repetitive tasks like data entry, invoice processing, reminders, collection statements, etc. freeing up human resources to work on high-value tasks. Inventory management systems in manufacturing, lending, and collection automation in banks, or IVR calling in call centers are prime examples where AI and automation can easily manage repetitive tasks without human intervention.
Moreover, many AI tools analyze marketing trends using advanced algorithms to understand customer behavior. Using these AI power analyzing tools, businesses can optimize their operations as per the future marketing demand and customer behavior, and price their products strategically to help SMEs remain competitive in the global market and optimize their operations.
Reaching Global Markets with AI-Powered Marketing
While traditional marketing works in a small area, SMEs need to reach higher to survive these days. By adopting AI in marketing, they can create data-driven strategies to understand the global audience. AI-powered tools can analyze demand, and trends online in the international market, based on location, demographics, etc., and create localized and targeted marketing campaigns for a particular group.
Businesses can use AI tools to create interesting and relevant content for any culture or location. For instance, an SME selling handmade crafts can use AI to tailor messaging that appeals to Japanese customers’ appreciation for artistry and craftsmanship.
Moreover, AI platforms can even help optimize websites, ads, and social media by identifying relevant and high-performing keywords to help create tailored content and boost the global visibility of any business. SMEs with limited budgets do not have to invest a lot in marketing and still get access to high-quality value-adding marketing strategies that deliver results.
Enhancing Customer Service and Insights with AI
AI can help businesses understand customers’ demands better. Good customer service is critical to staying ahead of the competition. AI-powered predictive analytics provides SMEs an edge by giving deep insights into customer preferences and providing better service. AI-powered analytics platforms can easily forecast future trends, purchasing patterns, etc. enabling SMEs to make informed decisions. Predictive analytics tools can also analyze feedback and reviews on multiple platforms- like chatbots on websites and social platforms. This can help businesses to review and update their strategies according to customer feedback.
Plus, with machine learning models, these AI-powered tools can provide hyper-personalisation to customers by identifying their purchase patterns, history, or searches. For instance, when someone checks out a winter destination to travel, these AI power tools analyze their search history and can send recommendations for travel gear, clothes, flight tickets, etc. This hyper-personalization increases the likelihood of conversion and improves overall sales.
AI in E-Commerce Leveling the Playing Field
AI in E-commerce is a new and innovative way to improve the sales funnel and generate revenue. The global increase in e-commerce platforms post-COVID created new market trends but with AI and automation, SMEs can give large-scale enterprises a run for their money. With automation like smart recommendations, dynamic e-commerce stores, fraud detection, chatbots, etc, SMEs can easily upsell and cross-sell by suggesting products based on customer browsing, deliver dynamic e-commerce experiences to different segments of users, and even monitor fraudulent transactions and activities online.
Moreover, e-commerce AI-powered chatbots are making site navigation and sales funnel simple to guide the customer without human intervention. These advanced automated tools help with customer service and provide unparalleled support throughout the purchase journey. Using these AI-based tools, SMEs can compete with MNCs even in the international market.
Breaking Language Barriers with AI Translation Tools
The Philippines deals with global clients. Language barriers can make or break a company. But thanks to AI-powered translation tools, any company can easily converse, market, and deliver services internationally without the need to learn multiple languages or hire multilingual human resources. AI-powered translation tools like Google Translate or DeepL have made it easier than ever for businesses to communicate with global customers.
These AI-powered translation tools allow businesses to translate in real-time. Whether it is a book, email, website, or customer information SMEs can use these tools to communicate and understand global audiences and interact with them in their language.
Today, AI-powered chatbots and virtual Assistants also come with multilingual support, all thanks to AI and automation to deliver customer support across multiple time zones and languages, enhancing customer experience and engagement.
Access to Advanced Technology For Everyone
Traditionally, only large-scale business could get their hands on the latest technology tools, but with the development of AI, even small enterprises can gain access to cutting-edge technology tools with less budget. AI has democratized access by offering affordable and scalable solutions tailored for SMEs.
Many AI tools are now available on a subscription basis, as plugins or free online versions allowing small businesses to access AI capabilities at a cost-effective price. Plus, many user-friendly AI platforms enable SMEs to implement AI-driven solutions without requiring technical expertise, reducing reliance on expensive developers.
Challenges and Opportunities of Using AI in Business
AI and automation are simple and cost-effective but still have many challenges in implementation and use. Although many AI tools and solutions are free or on budget, high-quality and powerful AI tools are still expensive in the Philippines. Plus, many SMEs face barriers such as limited budgets, lack of expertise, and resistance to change. However, the benefits of using AI and automation tools outweigh the drawbacks, especially when provided by SME-friendly technology solution providers like Lgorithm Solution who provide AI-powered tools to small and medium enterprises at a very cost-effective price.
They also help SMEs overcome technical and financial hurdles and provide continuous support, future maintenance, and training whenever required. With the help of AI technology providers, SMEs in the Philippines can easily overcome the challenges in the implementation of AI power tools and compete with global MNCs.
Conclusion:
AI is no longer a luxury reserved for big corporations, it’s now a budget-friendly solution to help SMEs compete in international markets and become global- all thanks to technology solution providers like Lgorithm Solution. By leveraging AI tools, SMEs can optimize operations, enhance customer experiences, and expand their market reach, all while fostering workforce upskilling and inclusion.
Lgorithm Solutions is committed to helping SMEs unlock the transformative power of AI. Contact us today to learn how we can empower your business to reach new heights!