Would you like a robot to cut your hair?

A Slovenian entrepreneur has raised concerns over how small and medium-sized businesses are adopting artificial intelligence tools, highlighting both opportunities and risks associated with their implementation. The discussion centers around the challenges these companies face in integrating AI into their operations, including lack of knowledge, initial investment costs, and data security issues. Miha Kranjc, a former journalist turned AI tool developer, founded Prosecco 37, a company helping businesses integrate AI into their processes. He spoke with Štajer, who has lived in Kamnik with his family for more than ten years and a half, about the potential and pitfalls of AI adoption in Slovenia’s business environment. According to Kranjc, large corporations are well-prepared and have invested significantly in AI integration, particularly in areas such as inventory management, accounting, financial operations, and customer support. These tasks, often considered administrative, are increasingly being automated through AI-driven solutions. However, smaller firms lag behind, largely due to limited awareness of market trends and the high cost of initial setup. Implementing AI can take several months before returns become visible, which discourages many SMEs. Kranjc noted that even though AI technology is becoming more accessible, many small businesses remain hesitant to adopt it, fearing job displacement or loss of control over critical functions. In practice, AI tools have already shown measurable benefits. For example, one client used an AI-powered document search system capable of recognizing handwritten text and extracting information from images. Another case involved a revision system that reduced the time required for a task previously taking weeks to just under an hour. Such improvements help employees save hours of work each week, yet acceptance among staff often depends on seeing tangible results firsthand. There is also growing concern about data privacy and security. While larger organizations typically have established policies and legal frameworks in place, smaller businesses may inadvertently expose sensitive information by using third-party AI models like ChatGPT. This risk is heightened when confidential data is processed without proper safeguards, potentially leading to breaches and legal consequences. To address this, Kranjc's team developed an “anonymizer” tool in collaboration with the Slovenian Bar Association, ensuring personal data is masked before being used in broader language models, thus maintaining confidentiality and compliance. Employee reactions vary depending on age and experience. Older workers tend to be more cautious, sometimes resisting change due to fears of automation replacing human roles. They may also struggle to distinguish between accurate and misleading responses generated by AI systems. In contrast, younger employees are generally more open to learning new technologies and adapting to AI-assisted workflows. However, Kranjc warns that without proper training and oversight, reliance on AI could lead to blind trust in its outputs, which might result in poor decision-making. The challenge lies in balancing technological advancement with ethical responsibility. AI models operate based on statistical patterns rather than true understanding, making them susceptible to biases and errors. Users must learn to critically evaluate AI-generated content and avoid over-relying on its recommendations. As AI continues to evolve, the key will be fostering a culture of informed usage and continuous improvement within businesses of all sizes.