Given that Colombia is the second-largest coffee exporter, Azahar Coffee's mission might seem unconventional: to keep as many Colombian coffee beans within the country as possible. Their reasoning? Colombians should enjoy the best coffee, too.
As a small business known for trendy, fresh offerings, Azahar must remain competitive in a growing market. Artificial intelligence (AI) could play a pivotal role, helping the café use its own data to make smarter, more efficient business decisions. For example, by analyzing daily sandwich sales, Azahar could reduce waste by purchasing only the necessary amount of bread. Understanding which tables are busiest at certain times could help optimize staffing, while data on customer preferences for oat milk versus cow's milk could improve dairy inventory management.
Large companies are already utilizing similar AI tools. A recent study found that around 42% of companies with more than 1,000 employees have implemented AI to boost business operations. However, small businesses often face barriers to accessing these technologies due to limited time and financial resources. To democratize AI, we need to make these tools more accessible to small businesses, enabling them to compete in an evolving tech landscape.
Small businesses require customized, user-friendly, and affordable AI solutions. Here are three such examples supported by Mastercard Strive:
As a small business known for trendy, fresh offerings, Azahar must remain competitive in a growing market. Artificial intelligence (AI) could play a pivotal role, helping the café use its own data to make smarter, more efficient business decisions. For example, by analyzing daily sandwich sales, Azahar could reduce waste by purchasing only the necessary amount of bread. Understanding which tables are busiest at certain times could help optimize staffing, while data on customer preferences for oat milk versus cow's milk could improve dairy inventory management.
Large companies are already utilizing similar AI tools. A recent study found that around 42% of companies with more than 1,000 employees have implemented AI to boost business operations. However, small businesses often face barriers to accessing these technologies due to limited time and financial resources. To democratize AI, we need to make these tools more accessible to small businesses, enabling them to compete in an evolving tech landscape.
Small businesses require customized, user-friendly, and affordable AI solutions. Here are three such examples supported by Mastercard Strive:
1. Leveraging Chatbots for Data Insights
Azahar is part of a pilot program led by Datasketch, a small social tech company focused on democratizing data science to address social inequality. The program introduces chatbot-enabled AI to small businesses in Bogotá, providing them with accessible data analytics services that were previously out of reach for the city's 50,000 independent shops and restaurants.
These businesses, often relying on gut instinct or basic spreadsheets, can now access valuable insights through a chatbot interface tailored to their data. For instance, a manager at Azahar could ask, "How much milk should I order for next week?" and receive a data-driven answer based on sales trends, customer preferences, and seasonal patterns. This technology allows smaller Colombian businesses to compete with larger companies using advanced tools.
2. Empowering Business Coaches with Real-Time Data
Advanced data science solutions can have a broader impact, benefiting small businesses and their communities. The Community Reinvestment Fund (CRF) is working with Allies for Community Business (A4CB) in Chicago, offering financing and coaching to help local entrepreneurs grow. CRF Insights, a cutting-edge platform, enables advisers to quickly generate a financial snapshot of a business, a process that traditionally took weeks. This tool pulls data from various sources to create a dashboard of key financial insights, helping businesses set goals and monitor progress. Additionally, it can provide alerts to assist in decision-making, such as adjusting to sudden demand spikes or evaluating marketing campaigns.
3. Helping Small Businesses Compete on Sustainability
As small businesses seek to compete globally, the ability to track and report on environmental, social, and governance (ESG) metrics is becoming essential. The majority of large organizations now require small businesses to disclose ESG data, but many find this challenging due to cost and complexity. Vested Impact, supported by Mastercard Strive, is developing an affordable platform for small businesses to assess their impact quickly, using AI and extensive data to generate reports aligned with U.N. Sustainable Development Goals. Their aim is to help 1.2 million small businesses by 2024, making it easier for them to showcase their positive contributions.
Ensuring AI Benefits for All
These are just a few ways AI can help level the playing field for small businesses. AI can enhance customer retention, improve marketing efficiency, and boost cybersecurity. To ensure AI benefits small businesses, it’s crucial to involve them in the design of these tools. Mastercard is helping democratize AI through initiatives like the Artificial Intelligence to Accelerate Inclusion Challenge, in partnership with data.org and Dasra, which recognizes scalable AI solutions for small businesses.
Ultimately, the AI revolution is here, and it’s vital to ensure small businesses are not left behind. By developing accessible AI tools like chatbots, supporting community business coaches, and enabling ESG reporting, we can unlock the power of AI for all. The potential is vast, and it’s time to embrace it.
Click here to know more about Mastercard's work in artificial intelligence.