How SMBs Are Cutting Costs with AI and Automation

In an era where margins are thin and competition is fierce, small and midsize businesses (SMBs) are turning to AI and automation not just to stay competitive, but to reduce expenses and grow smarter. At Left Brain, we focus on helping our partners drive efficiency in three core ways: reducing costs, saving time, and increasing revenue. Today, we focus on the first pillar: cutting costs through AI.

Below are key areas where SMBs are leveraging AI and automation to significantly reduce operational expenses, backed by real-world success stories.

---

1. Supply Chain & Inventory Optimization

AI-driven forecasting tools help SMBs better predict demand, reduce stockouts, and minimize waste. Fast-food chains like Juici Patties and Yum Brands use AI to streamline inventory orders and optimize food production—dramatically lowering spoilage and storage costs. These strategies aren’t just for big brands; SMBs in retail and logistics are automating restocking with AI-powered inventory tools, achieving similar savings.

2. Document & Expense Automation

Manual invoice processing is expensive and error-prone. SMBs now use Optical Character Recognition (OCR) and Intelligent Document Processing (IDP) to automate this workflow. One example: On, a Swiss footwear brand, achieved 90% automation in expense handling and slashed costs by nearly 79%. Platforms like Brex and Airbase help SMBs match receipts, enforce policy, and detect fraud in real-time—dramatically reducing overhead.

3. Business Process Automation (BPA) and RPA

Robotic Process Automation (RPA) is helping SMBs automate repetitive tasks in finance, HR, and procurement. These tools reduce manual effort by up to 50% and lower operational costs by 20–30%. Healthcare giant Omega Healthcare saves 15,000 employee hours per month with AI-driven claims processing—showing that even high-complexity industries benefit from smart automation.

4. Customer Support via AI Chatbots

Many SMBs use AI chatbots to deliver 24/7 support at a fraction of the cost of live agents. These bots handle common questions, reduce ticket volume, and allow small teams to focus on high-value interactions. The result: lower support costs and higher customer satisfaction.

5. Operational Safety & Route Optimization

A Texas moving company, 3 Men Movers, uses AI to detect distracted driving and optimize routes. They reduced accidents by 4.5% and significantly cut liability and insurance costs. AI cameras and smart routing tools now provide SMBs with real-time risk reduction and logistical savings.

6. Smarter Procurement

AI tools are helping SMBs streamline procurement—from automating supplier vetting to optimizing purchase decisions. AI-driven platforms minimize unnecessary purchases and reduce transportation and delivery expenses.

---

Real-World Impact: Cost Savings at a Glance

Area	Impact
Inventory & Supply Chain	Lower waste, optimized restocking
Expense Management	79%+ reduction in processing costs
RPA & BPA	20–30% operational cost savings
Customer Support	Reduced labor costs, 24/7 availability
Operational Safety	Fewer accidents, reduced liability
Procurement	Controlled spend, better vendor outcomes

Final Thought: AI Isn’t the Future—It’s the Present

Cost reduction through AI and automation is not reserved for enterprise giants. SMBs everywhere are proving that strategic AI investments deliver fast, measurable ROI. At Left Brain, we help you harness this power with precision and purpose.

Ready to reduce costs and operate smarter? Let’s build your AI-powered future today.