Four Ways AI Can Drive Business Growth | A Q&A with Josh Axelrod, Aldrich COO

As Chief Operating Officer at Aldrich, Josh Axelrod, CISSP-ISSAP, CISA, CISM, CGEIT, CRISC, CDPSE, knows the unique challenges and opportunities of AI for business owners. Even as AI technology evolves at lightning speed, business owners can take a strategic approach to AI adoption and leverage its many capabilities to improve operations and enhance revenue.

Josh: AI has been embedded in a lot of technology for some time now, and most people are quite comfortable with it whether they know it or not. AI is already part of daily life, whether it’s the smart assistant on your phone, the recommendation systems on video streaming platforms, or fintech and accounting technologies. The newer generation of AI tools can handle more context and utilize natural language processing or large language models. These user-friendly tools can better replicate human performance, offering even greater value to businesses. 

Josh: We’re at the “learn and be curious” stage. When it comes to any technology, my advice to owners has always been to connect with people who understand both the technology and their business, and that’s especially true when it comes to AI. Large corporations might have significant capital to invest in AI and expansive IT teams to develop and implement solutions, but for business owners, this is the time to take a “race to be second” approach. Evaluate whether to adopt AI, assess its potential impact, and learn from others who have faced similar challenges.

Josh: AI is like any new tool—it can provide a competitive advantage if used correctly. AI can enhance creativity, analysis, and delivery capabilities without the need for additional staff. It works 24/7/365, is relentless in its efforts, and is scalable.  

Many small and mid-sized businesses are already using AI, and there are clear use cases for owners, including help desks and chatbots, quality control and error checking, dashboarding for business performance visibility, and legal contract review and risk analysis 

AI can clearly save time, reduce manual errors, and provide insights, but at the same time there’s no simple plug-and-play solution. Business owners should consider taking calculated risks with AI to avoid being left behind while still being selective in its application, focusing on areas where it can provide significant benefits. 

Josh: From my perspective as a COO, I think AI can be helpful in improving the operations of a company. The first area I’d consider is using AI for performance analysis. Small and mid-sized businesses have access to a lot of data, from accounting to inventory to supply chain. AI can help owners understand business performance, identify issues, and gain actionable insights. 

The second area I’d look at is top- and bottom-line improvements. AI can be valuable in terms of enhancing revenue through better marketing and deeper understanding of client behavior and industry trends. It can also increase bottom-line opportunities by reducing operational costs, minimizing errors, and decreasing manual tasks and non-value-added work. 

Josh: Business owners should be aware of several risks when it comes to integrating AI into their operations. First, there’s the risk of overreliance on AI before it’s earned their trust. AI systems must demonstrate reliability and accuracy through rigorous testing and real-world application. Even after trust is established, it’s crucial to consistently verify AI performance, as errors or biases can emerge over time. Additionally, cybersecurity risks must be considered, as AI systems can be targeted by malicious actors. Finally, regulatory and ethical considerations are important to ensure compliance and responsible use of AI technology. 

Josh: Start by consulting trusted advisors or talking to other companies in your industry. It’s okay to lack initial knowledge or understanding. Begin with a low-cost, low-risk use case. Aim to solve a specific problem, test the solution, and then expand from there. Engage people who see the potential of AI before implementing it company-wide. Stay open to learning new methods, and carefully evaluate the pros and cons of AI tools. Choose solutions that fit your business and goals and be willing to adapt your processes accordingly. Encourage and commit to change within your organization. 

To learn more about how Aldrich can help you drive your business forward, click here. 

The Aldrich Group of Companies provides financial, wealth, tax, and business transition strategies and services to clients. With offices across the West Coast of the U.S., Aldrich has worked closely with businesses, business owners, and individuals for more than 50 years to understand and help deliver on their growth goals. Aldrich includes one of the U.S’s Top 100 Accounting Firms, which provides tax, advisory, and consulting services to businesses and individuals, with deep expertise across an array of industries. Aldrich includes the following professional services firms:  Aldrich CPAs + Advisors LLP , Aldrich Wealth LP, and Aldrich Capital LP.