Artificial intelligence and automation technology are evolving at such a pace that they’re no longer a pipe dream for startup owners. In terms of their ability to drive efficiency while mitigating the impact of human error, their implementation could be transformative.
Large language models developed by the likes of OpenAI, Google, Anthropic, Cohere, Meta, and Mistral, among others, have helped to showcase what the future could look like for startups and SMBs. With McKinsey research suggesting that the long-term AI opportunity is worth $4.4 trillion in added productivity growth potential, it seems that the automation bandwagon is well worth boarding sooner rather than later.
Over the next three years, 92% of companies plan to increase their AI investments, and this could herald a new era for accuracy and compliance within operations.
In terms of overcoming the risks attached to human error, the potential upside of automation implementation can be significant for startups beginning their scaling process. With this in mind, let’s explore how the technology is transforming the business management landscape for startups and SMBs:
Improved Compliance
Crucially for startups, automation technology has the power to actively limit instances of noncompliance and the prospect of fines for preventable human mistakes.
The technology can provide a clear audit trail. For one financial services firm, automated compliance audits have helped to lower fines by more than 80% in one year alone.
This is achieved through standardized processes that ensure rules, regulations, and internal policies are always in place.
Through machine learning (ML) tools, artificial intelligence models can additionally monitor for rule changes on a proactive basis to instantly implement new conduct changes with as little friction as possible.
For startups, the risks of noncompliance can be fatal. Costly fines can undermine entire endeavors before they have a chance to scale. Automation tools can mitigate this risk.
Data Efficiency
Another danger of human error stems from inefficiencies in data entry. Not only can automation tools like robotic process automation (RPA) be a significant time-saving advantage for businesses, but they can also automate repetitive tasks that are more prone to errors by disengaged workers.
Inventory management software is one example of data entry automation, where sales, orders, and inventory levels can be tracked accordingly to ensure that stocks are maintained at the right level at all times.
Automating these repetitive processes empowers your employees to commit time to more hands-on tasks, lightening the load and preventing the risk of more errors committed through burnout.
As a use case, UiPath has developed a platform for automating monotonous tasks in the workplace, like data entry and invoice processing. This can offer benefits in terms of the time and money that can be saved by startups, while also improving efficiency through the accuracy of data recorded, all without the risk of human error undermining the quality of information.
Payroll Accuracy
Another efficient example of automation technology in action can be found in payroll management.
Where startups can struggle with expensive accountants or complex payroll software systems, streamlined tools can allow users to generate a paystub with accurate payroll data that’s compliant with relevant industry standards.
Although the cost of inaccurate paystubs can have significant tax implications for businesses and employees alike, as well as internal accounts challenges, ensuring an accurate and efficient flow of data that’s accurately recorded for employees can form the cornerstone of smooth business management.
Eliminating Bias
The risk of human error in the recruitment process is perhaps highest for startups. Not only can unconscious bias cause businesses to miss out on talented candidates, but it can also lead to poor quality hires that are incapable of supporting your scaling ambitions.
Automation tools can help your recruitment team deal with accurate information and candidate processing, reducing bias throughout the candidate selection process.
For instance, autonomous screening tools can use standardized criteria to evaluate candidates against the same benchmarks. Applicant Tracking System (ATS) solutions can also remove candidate names and other identifying information to ensure that human recruiters don’t fall into the trap of unconscious bias.
Unlocking the Potential of Automation
For startups, the prospect of moving away from manual processes for key operational tasks can be a daunting prospect, especially when bootstrapping and attempting to avoid high implementation costs.
However, the benefits of managing the dangers of human error can hold plenty of potential in the long term, with more accurate hiring, better compliance, and data efficiency smoothing the road ahead for scaling ambitions.
In terms of boosting operational efficiency, the potential of automation is high. Although embracing the technology can seem like a challenge in itself, automation and AI can unite to deliver sustainability throughout many processes long into the future.
