Making smarter business decisions with AI
ARTIFICIAL Intelligence (AI) is no longer a futuristic concept reserved for global technology companies. It is quietly reshaping everyday business in Sarawak, helping enterprises respond to customers more quickly, manage inventory more efficiently and improve digital marketing.
For Sarawakian entrepreneurs and small and medium-sized enterprises (SMEs), the question is no longer whether AI will influence business, but how to use it strategically. The goal is to harness AI to solve practical business challenges while preserving the human relationships and employee wellbeing that underpin the local business community.
From tools such as ChatGPT to AI-powered customer service, inventory forecasting and digital marketing, AI is becoming part of daily operations. Yet many business owners remain uncertain. Some fear AI will replace jobs, while others adopt it simply because it is fashionable. The real opportunity lies in using AI responsibly to support better decisions while maintaining the trust and personal connections customers value.
Think of AI as a business partner
One of the biggest misconceptions about AI is that it is designed to replace people. In reality, businesses gain the greatest value when AI supports rather than replaces human decision-making. AI excels at analysing large volumes of data, identifying customer trends, forecasting sales, recommending products and automating routine administrative tasks. This allows entrepreneurs to focus on strategy, innovation and customer relationships.
However, AI cannot understand organisational culture, interpret emotions or make ethical judgements. These responsibilities remain with people. In banking, for example, AI can detect suspicious transactions within seconds, but trained employees still review flagged cases before deciding whether action should be taken. AI improves speed and accuracy, while human judgement ensures decisions remain fair and accountable.
Entrepreneurs should therefore view AI as a trusted management tool that provides valuable insights, while final decisions remain firmly in human hands.
Solve business problems before buying technology
Many businesses begin their AI journey by searching for software, but a better approach is to first identify the problem they want to solve. Whether it is slow customer responses, poor stock management or ineffective marketing, businesses must understand their challenges before deciding if AI is the right solution.
For local cafés, kek lapis bakeries and home-based food businesses, managing daily production can be difficult. Preparing too much creates waste and higher costs, while preparing too little leads to missed sales opportunities. In Sarawak, demand can fluctuate significantly during events such as Hari Raya, Chinese New Year, Gawai and the Rainforest World Music Festival.
AI-powered electronic point-of-sale (ePOS) systems, including those introduced through initiatives such as the Sarawak Digital Economy Corporation (SDEC) SME Digitise! Programme, can analyse past sales, public holidays and school calendars to forecast demand more accurately. This helps businesses manage ingredients, reduce waste and improve efficiency.
AI can also enhance customer service through chatbots that handle routine enquiries on platforms such as Facebook Messenger and WhatsApp Business. This reduces pressure on employees to remain available after working hours while ensuring customers receive timely responses.
Beyond efficiency, AI supports compliance with the Sarawak Labour Ordinance (SLO) Amendment Act by helping businesses manage workloads within the 45-hour working week. AI should be adopted not simply as a technology upgrade, but as a practical tool to solve business challenges and support employee wellbeing.
Create better customer experiences
Customer expectations have changed significantly. Consumers face countless advertisements, reviews and product choices every day, making personalised recommendations increasingly valuable. AI enables businesses to tailor customer experiences at a scale that would be difficult manually.
The encouraging news is that SMEs do not need to invest in expensive custom-built AI systems. Many of the digital platforms they already use include intelligent recommendation tools. Cashless payment platforms, online marketplaces and social commerce platforms generate valuable customer insights that help businesses understand buying preferences.
By making better use of built-in AI features on platforms such as Shopee and TikTok Shop, local retailers can recommend products more effectively and reach customers beyond Sarawak, including buyers in Peninsular Malaysia and Singapore.
Rather than developing sophisticated AI systems from scratch, SMEs should focus on mastering the intelligent tools already available through the digital platforms they use every day.
Technology builds efficiency, people build trust
While AI improves efficiency, businesses must never overlook trust. Customers increasingly value transparency, authenticity and ethical business practices. AI-generated communication that appears robotic, inaccurate or misleading can quickly damage a company’s reputation.
Businesses must also handle customer data responsibly when using AI systems. A chatbot can provide order updates or answer routine questions efficiently. However, when an order is lost or a customer is upset, only a person can listen, demonstrate empathy and provide an appropriate solution. AI resolves operational issues, but people build relationships and long-term customer loyalty.
Invest in people alongside AI
Successful AI adoption depends as much on people as technology. Buying AI software is often easier than ensuring employees understand how to use it effectively and recognise its limitations.
Business owners should invest in digital literacy and continuous learning. Employees need to know how to use AI tools, evaluate their outputs critically and recognise when human judgement should take priority. AI can produce inaccurate or outdated information, so important business decisions, customer communications and strategic planning should never rely solely on AI-generated content.
Instead, AI should support analysis while people remain responsible for verifying information, applying professional judgement and making final decisions. Employees who understand both AI’s strengths and limitations are better equipped to use it responsibly and identify where it creates genuine value.
A human-centred future
The future of Sarawak’s SMEs is not about adopting the most advanced technology but using AI to solve local business challenges while protecting employee wellbeing. Businesses using WhatsApp, Facebook Messenger or TikTok Shop should set clear after-hours communication policies. Automated replies and simple chatbots can handle routine enquiries and indicate when staff will respond. For small businesses, shared business accounts, fixed response windows and clear escalation procedures reduce hidden overtime and constant digital pressure. As Sarawak adapts to the 45-hour working week, AI should support healthier work practices, combining intelligent automation with human judgement, empathy and trust for sustainable business success.
● Dr Clarice Chua Sze Wee, Lecturer, School of Business, Faculty of Business, Design and Arts, Swinburne Univeristy of Technology Sarawak Campus
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at mvoon@swinburne.edu.my.
