As artificial intelligence (AI) grabs headlines, more Utah businesses are scrambling to capitalize on its potential. But both “build” and “buy” models for AI can be capital-intensive. Identifying the right strategy — and the right resources — to guide your organization’s journey are key to success.
Companies of All Sizes, Industries Innovating with AI
Nearly 75 percent of U.S. companies have already integrated AI technology into some part of their business, according to an Accenture study. However, it’s not just heavyweight tech companies and Silicon Valley startups leading the charge; businesses of all sizes, in all sectors, across the Silicon Slopes are seizing the moment. Analysts at Statista anticipate the market for AI technologies will grow from around $200 billion today to more than $1.8 trillion by 2030.
Generative AI capabilities like Gemini and ChatGPT are accelerating adoption. Their ability to interact, learn, reason and create new content vastly expands the use cases for businesses. It also makes AI more accessible to those without programming skills.
Three key areas for AI innovation include:
1. Augmenting existing solutions. Wrapping AI into next-generation products and services can create a competitive advantage. Examples include customer service chatbots, smart home devices and automated shopping.
2. Optimizing workflows. If there’s data collection, labor-intensive work or routine transactions, there’s a prime opportunity to increase efficiency, reduce costs and improve service levels with the help of AI. Translation, shipping, security, court reporting and call centers are just a few of the areas where AI is making inroads.
3. Disrupting traditional industries. Some visionaries are completely reimagining the way we live, work and play by injecting AI into everything from autonomous flights to machines that can “read” medical images to dabbling in music and fine arts.
AI Development Can Be Cost- and Labor-Intensive
No matter how your organization is looking at AI, these projects share one common factor: the need for ongoing investment. Both building from scratch and deploying “off the shelf” AI capabilities can be cost- and labor-intensive for businesses in Utah.
Getting an AI initiative off the ground can require a significant upfront investment in computer hardware that’s powerful enough to run AI, as well as licensing fees to secure the appropriate data sets for training.
It also takes time and human effort to finetune an AI data model. It can be months or even years before the technology starts to turn a profit or can be deployed at scale.
Beyond the need for ongoing funding, AI adopters must navigate a dynamic regulatory environment and manage public perception. Lawmakers in the U.S. and abroad are still figuring out how to balance oversight without stifling innovation. Consumers are excited about the possibilities, yet also wary of AI’s impact on jobs, privacy and the economy — both here in Utah as well as nationwide.
Team Up with a Technology Banking Leader
The benefits for most companies on the Silicon Slopes far outweigh these challenges — especially when you can team up with the right resources right here in Utah.
As your organization plans its AI roadmap, consider these important factors when choosing your financial institution:
Industry expertise. Be sure to select a bank with a depth of experience working with B2B software companies, technology leaders and tech-driven firms around the country in all stages of the technology lifecycle. Your company should select one with deep knowledge that spans specialized verticals including human capital management, health care IT, document management and workflow, financial services and application development.
Dedicated team. Take the time to interview and select bankers with extensive experience in the software and technology space. By understanding the unique lifecycle needs of technology companies right here in Utah, they can provide tailored capital solutions with superior execution and customer service.
Variety of capital solutions. Strategically choose financial companies with lending capabilities across multiple channels and ranging from traditional cash flow lending to recurring revenue-based facilities for Utah tech firms.
Be sure to also select companies that can offer flexible, senior-secured financing solutions designed for the unique needs of Utah companies operating within the software and technology industries. Larger Utah businesses should also consider deploying treasury management solutions for an all-in-one banking approach.
Strong resource network. Make sure your financial provider has a reach that extends across the entire technology footprint, including venture capital investors, and the technology ecosystem. Your firm needs a resource that seeks to help Utah customers succeed through their own deep industry knowledge as well as connections to other helpful resources.
Seize AI Opportunities with Confidence
AI technology remains in its infancy, but it’s easy to see how its impact will be far-reaching and transformative in the Beehive State within just a few years.
As your business considers where and how to reinvent operations, seize new opportunities and achieve your AI goals, be sure to reach out to the Utah-based financial experts in your space. Plotting the right course and securing the right funding will streamline your AI journey and help your company generate lasting results.
Joshua Creer is the Wells Fargo Bank technology banking relationship manager in Salt Lake City.