Artificial Intelligence (AI) is one of the greatest innovations of our time. Its uptake remains high, with ChatGPT gaining over 100 million signups within its first year.
Like any disruptive idea, AI is a double-edged sword, making some products and services obsolete while introducing new ones once thought beyond human reach.
Originating from the Dartmouth Conference, AI has been widely embraced by entrepreneurs seeking to improve operations and boost revenue. Yet, despite heavy investments, many are not realising the expected returns.
In this article, we explore how entrepreneurs can maximise AI by developing a clear internal AI working strategy. We examine the key considerations and components in building such a strategy and how to ensure it ultimately works in your favour.
Considerations when crafting an AI strategy
Before developing an AI strategy document, an entrepreneur should first reflect on a few critical questions:
- What are the key pain points in my enterprise, and is AI truly the solution?
- Is my staff AI-ready?
- What are the expected returns on investment (ROI), and what is the payback period?
When these questions are fully addressed, the foundation for adopting an AI strategy is set. The next step is to design a strategy that is both elaborate and effective, guiding implementation and ensuring AI delivers measurable value to the enterprise.
We will now examine the key components of an AI strategy, focusing on problem, market, value proposition, client acquisition and competition:
Understanding the problem
A rough product built on real answers will always beat a polished one built on hope. Therefore, as an entrepreneur, begin by conducting a thorough internal audit of your current operations and processes to identify gaps AI can address.
Fully involve your staff, since they are the primary users of AI. Excluding them can lead to low acceptance, as studies show that many employees fear AI might replace their jobs.
This stage is critical in AI adoption because it determines the urgency of implementation and ensures you are solving the right problem. For instance, attempting to solve a behavioural challenge with AI is a misplaced effort. AI will not solve every enterprise problem, as some issues require a human-centric solution.
Analysing the Market
Market needs, constraints and expectations differ across industries and geographies. AI that has been successfully adopted in the US market doesn’t necessarily mean it will be embraced and accepted in Kenya’s fintech sector.
Infrastructure gaps, regulatory frameworks, and AI literacy levels shape what AI can realistically achieve. Entrepreneurs who understand these local realities design AI solutions that are both relevant and scalable.
Therefore, thorough market research to assess demand is essential. As an entrepreneur, do not fall into the trap of fear of missing out (FOMO) when it comes to AI adoption.
Defining the Value Proposition
AI’s value must be clear and practical. Consider a small retail business in Gikomba that sources goods from your wholesale shop.
Chances are, it doesn’t want “AI technology”; rather, it needs faster sales, better inventory control, and fewer losses. Similarly, the customers care less about how the product or service was offered.
They are very concerned about whether their problem was effectively solved. As an entrepreneur, it is critical to develop a clear value proposition that turns AI into benefits customers can feel, such as improved yields for farmers or faster service for walk-in customers.
Your clients and customers will adopt this AI if it helps them meet their needs effectively and reduces the constraints associated with it.
Designing Client Acquisition Plan
Even the smartest AI system will fail if people don’t use it. Many clients may mistrust or misunderstand AI, viewing it as too complex to use, whereas others are conservative enough to believe that AI is foreign.
The solution is to build continuous, enhanced awareness among the target audience and to design the AI with the customer in mind, making it simple to use.
Businesses must therefore design intuitive systems and use familiar platforms such as USSD or WhatsApp to onboard customers, as these are the most preferred channels of communication locally. An electronics shop owner, for example, could use WhatsApp-based AI to remind clients about new products and available offers.
Understanding the Competition
AI growth is extremely rapid, with new AI models released daily. Understanding how others are doing grants you a competitive advantage.
As an entrepreneur, explore how you can demonstrate uniqueness in your AI product, e.g., through unique datasets such as local-language voice recognition or region-specific insights. The advantage lies not in copying Silicon Valley but in tailoring AI to our local realities.
Conclusion
AI offers immense potential for enterprises, but success lies in clarity, not hype. By applying a well-executed strategy with a keen focus on the problem, market, value proposition, client acquisition and competition, entrepreneurs can turn AI into a growth engine.
Furthermore, entrepreneurs need to understand that AI adoption must tie back to the bottom line: how will it accelerate wealth creation while ensuring long-term business sustainability? Entrepreneurs should therefore avoid “tech for tech’s sake” and instead focus on sustainable growth by first crafting a practical, working AI strategy.
Mr. Noah Wesonga is a Business Consultant at WYLDE International. You may connect with Noah via email: [email protected]
Also Read: Business strategy 101: a practical guide for entrepreneurs
