AI could give small businesses competitive edge over large firms: Former UK PM Rishi Sunak

Artificial intelligence (AI) could give small businesses a competitive advantage over large companies by helping them improve productivity, overcome resource constraints and adopt new technologies faster, former UK Prime Minister Rishi Sunak said.

Artificial intelligence (AI) could give small businesses a competitive advantage over large companies by helping them improve productivity, overcome resource constraints and adopt new technologies faster, former UK Prime Minister Rishi Sunak said. Speaking during a conversation with Asahi Pompey, Global Head of Corporate Engagement and President of the Goldman Sachs Foundation, at the Goldman Sachs 10,000 Women graduation ceremony in New Delhi, Sunak said AI could become a powerful tool for small businesses seeking to expand their operations.

"For businesses, I'm incredibly optimistic about it. And I really think, in particular, for small businesses, because it really can be a small-business superpower," Sunak said. Explaining why smaller businesses could benefit more quickly from AI, he said large companies often face bureaucratic hurdles and multiple layers of decision-making when introducing new technologies.

"Large businesses take time to adjust to things, to deploy new things, to change how they operate. There's bureaucracy, there's red tape, lots of layers of all of that to get through. All of you can move so much faster," he said. Sunak said AI could enable smaller teams to achieve more despite limited manpower and resources, potentially narrowing the gap with larger competitors.

"This could be your superpower to turbocharge all your ambitions, but also actually allow you to have one over the big companies," he said. Highlighting practical applications, Sunak said business owners could use AI to prepare for important customer and supplier meetings, including practising discussions and anticipating questions.

He also suggested using AI agents as virtual chiefs of staff to manage work and improve productivity. "You can now have an AI chief of staff, right? The more you create an AI agent that is your chief of staff, it will allow you to do far more things and be that much more productive," Sunak said.

However, he stressed that businesses would need to continuously adapt as AI technology advances rapidly. Referring to a recent interaction with venture capital firm Sequoia Capital, Sunak said one of its managing partners had urged companies to consider reinventing themselves every four months because of the pace of improvements in AI models.

"I think if I was going to pick one thing for all of you in the room, I would say adaptability," he said. Sunak also highlighted another potential shift from widespread AI adoption, saying increasing automation could make human interaction and shared experiences more valuable.

"One thing that I think a world with a lot more AI means is that we're also going to crave human connection," he said. He suggested that sectors such as sports and entertainment, which bring people together, could gain importance for businesses and investors as automation expands.

Sunak said entrepreneurs should embrace AI to improve efficiency and create new growth opportunities, while remaining flexible enough to respond to rapid technological changes. (ANI)