Business problems AI can solve - man at cluttered desk problem solving

Business Problems AI Can Solve: A Smart First Step in Your Strategy

Part 2 of the AI Strategy for Business Growth Series

Before You Buy an AI Tool—Ask Yourself This

If you’re like most small business owners, you’ve probably heard a lot of buzz about artificial intelligence. But before jumping in, it’s crucial to understand the business problems AI can solve. Knowing exactly what’s slowing your business down—and how AI might fix it—is the smartest first step in any AI strategy.

But here’s a key truth:

AI will only help your business grow if you know what problem it’s solving.

That’s what today’s article is about. Before diving into tools, trends, or tactics, you need to understand the core problems in your business—and how AI might help solve them. This is Step 1 in building a smart AI Strategy for business growth.

Before choosing tools or platforms, it’s essential to understand the specific business problems AI can solve for your unique situation.

If you haven’t already read Part 1 of this series — What Is an AI Strategy for Business Growth?, it’s a great place to start before diving into specific problems.


Why Small Businesses Get AI Wrong

Let’s start with what not to do.

Many small businesses jump into AI like this:

  • They read about a cool tool.
  • They test it once.
  • They don’t see a big change.
  • They stop using it.

This happens because they’re jumping in without identifying the specific business problems AI can solve in their day-to-day operations.

You wouldn’t install a new oven if you don’t know what’s wrong with your current kitchen..

Installing an oven

SSimilarly, you shouldn’t use AI unless you understand the specific business problems AI can solve within your business.


How to Identify Your Real Business Problems

This step is all about diagnosis—identifying the business problems AI can solve before you dive into tools—like a doctor understanding symptoms before prescribing medicine.

Here are some powerful questions to guide you:

  1. Where am I losing time?
    – Do you or your team spend hours on repetitive tasks (e.g. sending invoices, following up with leads)?
  2. Where am I leaking money?
    – Are there inefficiencies in how you manage stock, handle customer service, or run marketing campaigns?
    – Are you paying staff to do things AI could handle?
  3. What’s frustrating my customers?
    – Do they complain about slow replies, confusing processes, or long wait times?
    – Could automating part of your service improve satisfaction?
  4. What do I avoid because it’s “too hard” or “takes too long”?
    – Maybe it’s writing blog posts, running social media, or analysing customer feedback.
    – AI might make these much easier—and finally get them off your plate.

Write your answers down. Patterns will emerge—and you’ll start to see the real business problems AI can solve in your day-to-day operations.


What Types of Business Problems Can AI Solve?

Many small business owners aren’t sure which business problems AI can solve—but it turns out, AI is especially effective for repetitive tasks, customer service bottlenecks, and time-consuming admin work. Here is a list of 3 types of business problems AI can solve especially well, with practical examples.

  1. Repetitive admin tasks
    – Example: Automating appointment bookings, invoice reminders, or social media scheduling
    – Tools: Calendly, QuickBooks, Buffer
  2. Data overload and decision-making
    – Example: Analysing sales trends or customer behaviour to make smarter marketing choices
    – Tools: Plecto, Zoho Analytics, Google Looker Studio
  3. Customer communication
    – Example: Using chatbots to handle FAQs or auto-reply to common emails
    – Tools: Chatbase, Tidio, Intercom

These are just some of the most common business problems AI can solve, especially for time-strapped entrepreneurs and small teams.


Mini Case Study: The Busy Builder

Mike runs a small building and renovation firm.

He spends 2 hours a day replying to email quotes and chasing suppliers. After mapping out his frustrations, he realised there were 3 problems:

  1. Too much time spent on admin
  2. Quotes not being followed up consistently
  3. Missed customer calls during site visits

Mike’s solution?

  • He installed an AI-powered chatbot on his website to capture quote requests.
  • He used ChatGPT to write quick follow-up emails for leads.
  • He automated reminders to suppliers using a simple workflow tool.

Result?

He saved 10+ hours a week and closed more jobs—without hiring anyone new.

Mike’s story is a simple but powerful example of how identifying the right business problems AI can solve can lead to immediate and measurable improvements—even in a traditional, hands-on industry like building and renovation


From Frustration to Transformation

This first step may seem basic—but it’s critical. You’re not looking for fancy AI solutions. You’re looking for high-impact, low-effort improvements.

Try this simple exercise:

Quick Win Worksheet

Make a table with three columns:

  1. Tasks you do regularly
  2. How long it takes
  3. What would happen if it were automated?

Example:

This gives you a map of opportunities—and a list of tasks that point directly to the business problems AI can solve in your workflow. We’ll explore how to evaluate tools for these in upcoming posts.


Common Mistakes to Avoid


Jumping into AI tools before identifying problems
Thinking AI means replacing people (it doesn’t—you enhance them)
Assuming your business is “too small” for AI (it’s not)
Forgetting to measure impact (we’ll talk about metrics soon)

These mistakes often happen when businesses fail to focus on the specific business problems AI can solve.


What You Should Do Next

Be honest about what’s not working in your business
Focus on daily pain points, not “big dreams”
Look for small wins (they add up fast)

Once you’ve mapped your pain points, you’ll be in a strong position to move forward. In the next aticle, we’ll show you how to identify the business problems AI can solve most effectively—so you don’t waste time or money.


Download Your FREE AI Readiness Quiz

By identifying the business problems AI can solve, you’ll build a strategy that’s grounded in value—not guesswork.

Want to know how prepared your business is to use AI?
I’ve created a FREE downloadable AI Readiness Quiz just for small business owners. It’s fast, fun, and will show you where to start.


Coming Next: Article 3 — “Where AI Can Add Value in Your Business (Without the Hype)”

I’ll help you prioritise opportunities so you don’t just automate for the sake of it—you automate for impact.

Stay tuned and feel free to share this post with fellow business owners!

Leave a Comment

Your email address will not be published. Required fields are marked *