In a lively episode of The Valley Today, host Janet Michael welcomes Carl Knoblock, Virginia District Director of the Small Business Administration, for a candid discussion about artificial intelligence (AI) and its growing influence on small businesses. Meeting at the bustling Espresso Bar in downtown Winchester, the two dive into the realities, misconceptions, and opportunities that AI presents for entrepreneurs.

Demystifying AI: More Than Just Buzzwords

Janet opens the conversation by asking Carl to break down AI in simple terms. Carl draws a parallel between traditional business record-keeping and modern AI, explaining that while businesses once relied on handwritten logs, today's AI systems gather and analyze vast amounts of data from the internet. However, he cautions that AI is still in its infancy—capable of collecting information but not yet adept at discerning relevance or context. As Carl puts it, "AI is just grabbing anything, like kids in a store."

The Human Touch: Training and Taming AI

Transitioning from theory to practice, Janet and Carl discuss the importance of human involvement in shaping AI outputs. Janet likens training AI to raising a toddler: the more you interact and correct it, the more it adapts to your style and needs. Both agree that while AI can automate tasks and provide insights, it requires ongoing supervision and fine-tuning to ensure accuracy and authenticity. "If you have great data, you're okay. If you have poor data, you're going to have to build it," Carl notes, emphasizing the need for quality input.

Practical Applications: From Forecasting to Customer Service

The conversation shifts to practical uses of AI for small businesses. Janet highlights how AI can streamline market research, identify customer preferences, and even generate strategic plans—tasks that once required hours of manual effort. Carl adds that AI can help businesses analyze sales data, manage inventory, and forecast trends, allowing owners to make informed decisions. However, they caution against over-reliance on AI, stressing the importance of human oversight, especially when interpreting nuanced data or handling customer interactions.

Addressing Fears: Will AI Replace Human Jobs?

Naturally, the discussion turns to the fear that AI will eliminate jobs. Carl draws historical comparisons to the rise of automation in manufacturing, pointing out that while machines can handle repetitive tasks, they cannot replicate human creativity, problem-solving, or empathy. Janet echoes this sentiment, noting that AI excels at logic but falls short in situations requiring intuition or emotional intelligence. Both agree that rather than replacing humans, AI will shift the nature of work, creating new opportunities for those willing to adapt.

The Limits of Automation: Why People Still Matter

Janet and Carl explore scenarios where AI falls short—such as handling sensitive customer service issues or adapting to unique, real-world challenges. They recount stories of businesses losing customers due to impersonal AI-driven support systems and highlight the value of empathy during life events like bereavement. "Companies don't even think about the human side," Carl observes, urging businesses to integrate compassion into their processes.

Looking Ahead: Embracing Change with Confidence

As the conversation draws to a close, Janet asks Carl for advice to small business owners just beginning to experiment with AI. Carl recommends starting with forecasting and data analysis, leveraging existing information to make better decisions. He encourages business owners to seek help from tech-savvy students or professionals and to remain open to learning and adaptation. Janet concludes by emphasizing the importance of implementation—reminding listeners that while AI can provide valuable insights, it's up to humans to put those ideas into action.

Conclusion: The Future is Collaborative

Ultimately, Janet and Carl agree that AI is a powerful tool, but its true value emerges when paired with human judgment, creativity, and empathy. As technology continues to evolve, small businesses that embrace both innovation and the human touch will be best positioned to thrive in an ever-changing landscape.