Thinc insights
The hype around AI is everywhere, but is it really enough to solve the SME productivity problem? Here’s why business automation is the answer that’s often lost in the noise.
Technology loves a buzzword. In the late 90s, the dot-com boom had everyone rushing online. By the early 2000s, it was all about cloud computing, and the 2010s fell in love with big data, machine learning and the Internet of Things.
Each of these technologies was once placed on a pedestal – the talk of the town for everyone from hipster tech entrepreneurs to data-driven CEOs. But now, there’s a new kid on the block – and it’s perhaps the most hyped of all: AI.
But for a busy business, how much attention should AI be taking? At Thinc, we believe it’s less about the technology headlines, and more about the application to your processes through intelligent, strategic business automation.
AI has been around for a long time, but not in the form that’s filling headlines today. Over the past two or three years, it’s been heavily touted as the saviour of the UK’s productivity challenge – especially for SMEs.
At Thinc, we talk to lots of business and finance professionals who don’t find this noise helpful. They need to visualise exactly how it can help their organisation.
Ambitious SMEs need to think about where the real gains for their business lie, and these often come from speedier processes, improved accuracy and freeing up teams to focus on high value work.
A lot of these gains can indeed be realised with AI, but it’s business automation specifically that can help crack the productivity puzzle for SMEs, supported by the right tools and approach.
With any new hype technology there’s pressure to move quickly. With AI, we’re seeing a new tech wave, from everyday ‘Gen AI’ tools such as ChatGPT to embedded business assistants like Microsoft Copilot, all accompanied by the warning to adopt or ‘be left behind’. There’s a fear of missing out, as business leaders scratch their heads wondering how this brand new tool can be utilised to maximise productivity and output.
In our latest mid-market IT research report, which looked at solving the UK’s tech productivity puzzle, UK business leaders hold a strong awareness of the critical role technology plays in cracking the UK’s productivity puzzle, especially in the context of AI and business automation. From those we surveyed, a 51% majority believe it will be a game-changer, while a further 14% think that it can assist but only in the hands of an expert user.
When it comes to looking at AI solutions for businesses, there’s plenty to go at. You’ll have heard of lots about the different AI tools out there, Microsoft Copilot and ChatGPT being the obvious ones. You’ll have maybe heard of the different ‘types’ of AI, like GenAI, which creates content, summaries any ideas, while something like Predictive AI can be used to forecast trends, demands and risks. Then there’s Agentic AI, which is more about ‘doing’, acting with purpose. From this, different AI tools will serve these purposes.
People in their everyday lives are using AI, both inside and outside of work, so there’s certainly appetite for its usage. That said, there’s thousands of tools that already exist out there, so how do you keep up or decide on what AI to use, and where?
What’s more, it’s a process not without its risks. AI is only as good as the information you feed it; if your business systems data is inconsistent or outdated, then the AI outputs will be too. Publicly available AI tools such as ChatGPT are essentially being ‘trained’ on the data you feed them – their outputs can’t yet be relied upon to be 100% trustworthy.
Many AI tools work in isolation, so if they’re not connected to core business systems, you risk creating more siloes, not fewer. There are also dangers that come from employees using publicly available GenAI tools to help summarise data that isn’t intended for public consumption – as Samsung found out in 2023 when commercial data found its way online due to people uploading it to ChatGPT. Ultimately AI should also support human judgement, not replace it. It can also feel like there is endless choice on new technologies such as AI, which makes it hard for SMEs to know where to start.
There are concerns about how different roles look in different places, as AI tools are used to address the fact that a lack of necessary skills is an issue for 77% of mid-market businesses. This means that the business risks not having a collective, joined-up view as different AI tools are used to address that lack of necessary skills.
The danger is that business leaders and their teams may chase shiny AI tools without fixing core processes first, which is fundamental if they are looking to automate processes.
In business, automation is the process whereby technology can come in and execute an organisation’s repetitive, rule-based tasks without any manual input required. Technologies that allow this are commonly referred to as business process automation, or BPA, tools.
Unlike standalone AI apps, business automation is tried, tested and already delivering ROI across business functions. In fact, business automation capabilities are often built into business applications, for example the Intelligent General Ledger feature in Sage Intacct. In some enterprise resource planning (ERP) solutions, you’ll find AI-powered insights and recommendations designed to boost productivity.
However, many organisations rely on multiple systems, often used by different teams, with lots of time and effort spent sharing that data between these teams. This is where, with a little extra support, you can unlock even greater efficiency. It’s now possible to fully integrate multiple business systems to automate multi-step processes across departments. With a single, joined-up view of all data, and proper automation of processes across the board, no systems are disconnected or in siloes, reducing the need for multiple workplace and AI tools.
Automation drives productivity by removing those bottlenecks that slow businesses down, particularly SMEs where resource can be stretched and responsibilities may span several teams. By eliminating manual errors, speeding up repetitive processes and ensuring consistent outputs, business automation creates a smoother flow of work across the organisation.
Skilled staff are freed from low-value admin to focus on strategic, revenue-generating tasks, while operational costs are reduced without the need to cut headcount. And because data stays accurate and up to date, leaders can make faster, more informed decisions with confidence.
To unlock the full benefits of automation, you need three things. First, a solid digital core – with your ERP at the heart of the business, clean data and fully integrated systems.
Second, clarity on your bottlenecks, so you know exactly where time is wasted, accuracy is lost or work is duplicated.
And finally, a partner who understands both technology and your business. At Thinc, we have deep expertise in Sage 200, SAP Business One, and Sage Intacct, and the experience across an array of sectors to align them with your goals. When these elements come together, business automation can cut the risk of manual errors, speed up your most important processes and keep data accurate and up to date.
While AI grabs the headlines, it’s really business automation that is already transforming productivity for SMEs. The productivity puzzle isn’t about replacing people, it’s about enabling them – helping them to do more, with less. It’s about streamlining processes and maximising output with true confidence, something that AI can’t quite give to you on its own. Our latest mid-market report shows that we understand the challenges facing business and IT leaders, and we hold the knowledge to advise business leaders about how they can best transform their processes to benefit how they do business.
At Thinc, we’re passionate about amplifying your people and your processes so that you can continue to produce the best service possible to your marketplace. We’re also happy to speak with you about your plans and how business automation could play a part in achieving your growth plans.
Want to know more about our research into IT needs among midmarket businesses? Read our blogs:
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