Many small and medium-sized enterprises are drawn to the notion of expanding into new markets overseas, but silos and hurdles can stop businesses that aren’t resource-rich in their tracks.
Now, as artificial intelligence continues to enhance global industries, could SMEs finally access the technology that could send them global?
The generative AI boom has been breathtaking. With Bloomberg forecasts suggesting that GenAI could grow to become a $1.3 trillion industry by 2032, the potential that the emerging technology holds transcends sectors.
This subset of artificial intelligence could help SMEs grow more seamlessly into new markets and economies by breaking down language barriers and compliance challenges in a way that budget-conscious businesses could struggle to manage.
With this in mind, let’s take a deeper look at how the AI boom is set to transform international expansion for SMEs and startups alike:
Localized Efficiency
Expanding into new markets means that SMEs will need to become acquainted with new cultures, regulations, and, in many cases, languages.
Natural language processing (NLP) is an element of AI that can really help with the localization of workflows and processes. This can help to automatically translate texts, pre-translate content, perform quality checks, and move translations through reviews.
We’re already seeing NLP break down local barriers for business in action, and Noor, an NLP developed by the Technology Innovation Institute of Abu Dhabi, is just an example of how the technology is opening the door to new regions and markets for businesses of all sizes.
Other AI-focused firms are specifically gearing operations towards facilitating overseas expansion. In the case of Centuro Global, an AI platform helping companies grow into international markets, which recently gained $3.3 million in funding from Mercia, expanding into a pool of 150 countries is becoming increasingly seamless.
Culturally-Aware Marketing
Generative AI will also help businesses to connect with their target audience on a more meaningful level, no matter where they are in the world.
Because generative AI is capable of creating sophisticated multimedia content in a matter of seconds, marketing materials can be naturally translated into various languages with messaging adapted to cater directly to cultural variations between markets.
This helps to appeal to customers beyond cultural divides to resonate more directly with an SME’s customer profile.
In terms of building brand awareness and loyalty, generative AI will be pivotal in creating effective campaigns in international markets, helping cost-aware businesses avoid breaking the bank in attempting to market to new audiences.
Keeping Expansion People-Focused
Artificial intelligence will transform HR departments among internationally focused businesses. For instance, payroll systems can benefit from automation with predictive modeling and analytics helping to forecast staffing costs and deliver bespoke benefits packages that suit overseas workers and their expectations.
By examining employee data trends, machine learning algorithms can work within AI systems to detect instances of employee fraud while remaining on the lookout for payroll anomalies.
One of the most appealing aspects of expanding internationally for SMEs is the prospect of onboarding talent with more attractive salary expectations.
According to P&H Law, in the Dominican Republic, for instance, a well-situated nation at the gateway to Latin America for US businesses, the national minimum wage for employees of SMEs changed to DOP$12,900.00 in 2022, equating to USD$215.18 at the time of writing. AI payroll platforms can maintain compliance by keeping these laws and regulations in check while creating an attractive benefit package to attract overseas talent.
Transforming Local CX
For both B2C and B2B SMEs expanding overseas, chatbots can help to transform the customer experience (CX) and ensure a strong line of support for any queries that may be received in a different language.
This can help businesses grow their presence internationally without running the risk of growing customer pain points for budget-conscious operations that won’t have sprawling customer service departments.
Welcoming Automation
While many workers are rightly worried about the impact of artificial intelligence on job markets, we can see evidence of new roles created for companies of all sizes in facilitating growth overseas.
Data suggests that as many as 79 million new jobs will be created by the emergence of artificial intelligence, with employees adopting a more collaborative approach alongside the technology.
Among freshly expanded companies, new hires will work alongside automation software to improve operations in new markets.
This will involve using AI technology like Ottern and Wingman to transcribe conversations between international offices and clients, diary management tools like Motion and Akiflow, unified accounting software solutions, and data entry tools like Docuf.ai and Auto Extract for recording document data.
Taking the World Stage
Until the emergence of artificial intelligence, the prospect of budget-conscious SMEs taking their first steps on the world stage would have been nothing more than a pipedream. But with the ability to automate, translate, and build bridges to overcome complex expansion processes, we’re likely to see more small businesses seek out global audiences in the future.
With new opportunities more reachable than ever before, it’s time to start considering the growth potential that SMEs can experience sooner rather than later.
