Artificial Intelligence (AI). How could it affect your company?
Artificial Intelligence (AI) has brought big changes across several sectors, bringing a new technological frontier and a mix of new opportunities to explore, but also risks to be considered.
So, how could this new technology affect your company? Could you utilise the new technology for your company’s benefit, or could it cause more harm than good?
What is AI?
While AI has long been the subject of science fiction, the current wave of apps and services are less akin to supercomputers and are better described as “generative AI”.
These are often based on Large Language Models (LLMs), which work by ingesting large amounts of data to respond to “prompts” entered by users.
These can be used to answer questions, give advice, and generate bodies of text or images.
At the time of writing, AI is being implemented as a feature across software, search engines, and smart devices to name a few, and names such as ChatGPT, Google Gemini, Microsoft CoPilot, and DeepSeek are becoming household names.
Additionally, more specialised AI is being developed, which could simplify jobs such as filing documents and research, as well as specialised applications for different industries, including defence, medicine, and social care.
Will AI be positive for my company?
AI can provide several benefits, in both the short and long term, for directors brave enough to explore its possibilities, potentially including:
- Reduces time spent on menial tasks
AI can help write emails and complete forms far quicker. Additionally, some AI models can produce website code and other solutions that reduce the need for troubleshooting. - Allows quick answers
The ability to answer questions is one of these AI models’ most touted features, reducing the need to trawl through search engines for answers to quick questions. - Can potentially reduce costs
AI’s ability to generate and rewrite text and images in seconds reduces the need for highly skilled creatives like content writers and graphic designers, saving the business money by bringing any content production in-house. - Potentially creates new jobs
AI’s ability to complete menial tasks can stir fears of job displacement. However, new job opportunities may be created to help use the technology more efficiently and to help tweak it to a company’s bespoke requirements.
Is AI a threat to my company?
While AI can present opportunities, it’s important to consider the potential negative implications. These could include, but are not limited to:
- Potential loss of clients
If your business provides services like content writing, graphic design, video production, photography, etc., you could find those clients turning to AI instead of commissioning further work to cut costs. - Security issues and AI’s use in cyberattacks
Although the new technology has numerous benefits, cybercriminals are already exploiting AI for use in cyberattacks. Your business could be hit with adaptive malware, deepfakes, and password-cracking software. - Employee usage outside of remit
AI has increased the use of shadow IT, wherein employees use software, services, or hardware unauthorised by their IT departments. This ‘under the radar’ approach means compliance could be ignored, and the company could be at greater risk of dangerous data breaches. - Still many unknowns
While the technology is booming, and the early adopters are likely to benefit, AI is still relatively new, and its progress has outpaced legislation. Questions around accountability for poor results, the use of data that may have been scraped without consent, or how future legislative changes might impact existing work done with AI’s assistance remain unanswered.
AI’s wider impact across sectors and industries
While the previously mentioned benefits and potential drawbacks will be noticeable in your day-to-day operations, AI’s usage has broadened since its increased availability, with it now implemented in a variety of uses across multiple industries.
Initially, these smaller, incremental improvements may seem minor, but as more businesses integrate AI into their processes, these cumulative enhancements can lead to substantial industry-wide shifts. Early adopters may gain a competitive advantage, while those slow to adapt might find themselves at a disadvantage.
- Retail
In the retail sector, the technology is being used to better manage inventory, while predictive analytics is tailoring suggestions to customers. Virtual assistants and chatbots are increasingly being rolled out for customer-facing tasks for less than the cost of a customer service agent. - Hospitality
The hospitality sector has utilised the technology to improve algorithms and generate more personalised experiences for returning guests. Behind the scenes, AI is helping optimise energy usage, predict occupancy levels, and better manage resources, which could lead to significant savings on energy costs. - Real estate
In real estate, AI is being used in risk assessment and in predicting upcoming changes in the market, leading to more informed decisions around investment and purchasing property. - Construction
Construction firms are using AI to improve and streamline design processes and project management, reducing the need for human input.
How we can help if AI has negatively affected your company
If you’re concerned about the possible impacts or if AI has already had a negative effect on your company and you’re concerned about its future, you must take action to address these issues before they grow and risk longer-lasting consequences.
Contact us for free, confidential advice. By understanding the options available, you give yourself the best chance of navigating any financial issues your company may be facing. Our licensed insolvency practitioners can carry out formal insolvency proceedings, including payment plans that can help you restructure your debt repayments and closure and liquidation options for solvent and insolvent companies.
- Company Voluntary Arrangement (CVA): Repay your company’s debts through a structured plan.
- Administration: Restructure and stabilise your company.
- Creditors Voluntary Liquidation (CVL): Close your insolvent company.
- Pre-pack liquidation: Close your insolvent company and start again.
- Members Voluntary Liquidation (MVL): Close your solvent company through a tax-efficient process.
How to get in touch with us
- Speak with our initial advisers
Contact our team via phone, filling in a form, or via our online chat. If we can help, we will arrange a free consultation with one of our consultants to discuss your situation in more depth. - Initial assessment
During the consultation, we will advise if there is an appropriate route forward with us or whether an alternative solution is better suited for your company. - Formally engage with Wilson Field
If there is an appropriate insolvency solution, we will confirm the necessary steps to start the procedure and will issue you with the relevant documentation for you to formally engage us.
Summary
As an emerging, new technology, AI presents both opportunities to seize and challenges to be aware of. While it can save time on menial tasks, potentially reducing costs, and even create jobs, it is on unfamiliar ground, risks some businesses losing work, and can be more of a detriment than an advantage if used improperly. If this results in a threat to your company’s future, we can advise you of the best route forward.