“The program addresses the growing need for small businesses to understand and utilize cutting-edge technology to stay ahead of the competition, especially the larger box stores and online retailers,” Machuca says. “By creating a series of GPTs [generative pre-trained transformers] that can fill workforce gaps, improve market research, grow online marketing, and support the business owner, we can help clients make the most of the opportunities that generative AI creates.”

According to Machuca, the Alaska SBDC has consistently demonstrated its forward-thinking approach by embracing new technologies that benefit the state’s business community. This longstanding commitment to innovation and small business support naturally led to the creation of the AI Resource Program. “By recognizing the transformative potential of artificial intelligence early on, the program now serves as a crucial bridge between cutting-edge technological possibilities and practical business applications, equipping Alaska’s organizations with the tools and knowledge they need to thrive in an increasingly dynamic, technology-driven world,” he says.

The AI Resource Program offers a range of training and educational programs tailored to businesses, business advisors, SBDCs, individuals, and organizations across a variety of industries. These initiatives focus on developing AI literacy, practical skills, and readiness for AI adoption through workshops, assessments, hands-on labs, and consulting.

For instance, the program’s workshops and seminars are designed to help participants build foundational AI knowledge and skills. It offers AI readiness assessments to evaluate an organization’s preparedness for AI adoption, marking the initial step in its AI implementation training. And the program’s AI implementation guidance service follows its in-house guide of twenty steps, which is specifically created to help SBDCs and small businesses get started with AI.

The AI Resource Program’s hands-on AI labs allow participants to gain practical experience with AI tools to enhance their technical skills and understanding of AI technologies. But for more customized assistance, there are tailored consulting services available to provide industry-specific AI implementation and tool development to meet the unique needs of various sectors.

There are also specialized AI implementation and training programs available through the AI Resource Program. This includes training for Alaska SBDC clients, advisors, leadership, and administration. The program also provides implementation and training programs for other Alaska entities, such as nonprofits, government agencies, healthcare providers, chambers of commerce, and lending organizations.

Additionally, the AI Resource Program maintains ongoing research initiatives. “We engage in continuous research of AI tools that enhance the capabilities of small businesses and business advisors,” Machuca explains. “These tools are cataloged in an internal database, enabling business advisors to share valuable AI resources with their clients. Each tool undergoes rigorous evaluation to ensure it meets our practicality criteria, guaranteeing that both advisors and their clients can significantly benefit from their use.”

The AI Resource Program equips the Alaska SBDC with a suite of AI tools that advisors rely on daily, enhancing their capacity to effectively serve local businesses. These contributions underline the program’s commitment to fostering business success and promoting innovation both locally and nationally.

Not surprisingly, the program’s advances in AI have improved its own operational efficiency by around 30 percent. “We’ve reduced the time it takes to assist clients while simultaneously improving our performance metrics,” Machuca says. “In essence, we’re able to achieve more in less time, allowing us to serve a greater number of clients effectively.”

As a broader impact, the AI Resource Program has significantly enhanced the efficiency of small businesses by providing practical education and tools that streamline processes and reduce operational costs. For example, the program trained Integrated Project Services (IPS) how to incorporate AI into its document analysis and data workflows. Consequently, the Anchorage project management company can now complete complex mathematical formulas and programming in mere hours instead of the weeks or months it previously required. This has resulted in substantial cost reductions and enhanced efficiency, with the company anticipating savings of more than $522,000 annually, according to IPS Vice President Thad Phillips. “I love it,” he says. “I truly believe that this technology is a game-changer; businesses need to get on board or they’re eventually going to be taken over by competitors.”

Phillips says the personalized training he received from the AI Resource Program is much appreciated as it significantly expands the capacity of his small business, which employs ten to fifteen people. “Introducing us to this cutting-edge technology helps level the playing field between us and big corporations,” he says. “Kudos to Carlos and his department.”

However, the AI Resource Program’s influence also extends beyond Alaska. It actively collaborates on specialized AI projects that benefit SBDCs, governmental organizations, and nonprofits nationwide. The AI Resource Program has trained dozens of SBDCs across the country in implementing AI for their facilities. For example, it helped the Nebraska SBDC in Omaha develop AI tools to streamline the process of crafting and analyzing business plans with limited advisory resources.

After completing multiple AI training sessions, the center has been able to reduce the typical two-week process of assisting clients with a business plan down to a few days. AI has been a “fantastic resource” and huge time saver for the Nebraska SBDC while improving access to data for its clients, says Tony Schultz, state director for the Nebraska SBDC.

Schultz describes Machuca, who administered the training, as “a great guy” who is “passionate” about what he is doing. “You can see the excitement when he’s doing the presentation, and you can just tell he’s really in his element,” he explains.

In addition, Schultz says working with the Alaska SBDC was a great, collaborative experience. “Frankly, I was shocked by the time they were able to dedicate to our group,” he says. “They were so open to teaching us how to use the tools and spending time with us.”

The Alaska SBDC’s AI Resource Program has also assisted the Federal Deposit Insurance Corporation. It helped the agency’s outreach division use AI to transform a static lender matrix into a dynamic, searchable database accessible to its executives and their partners.

Alluding to the practical purpose of the program’s collaborative efforts, Machuca says, “These programs and projects are designed to make AI accessible and actionable, empowering businesses and individuals to effectively harness its potential.”

Since the AI Resource Program was established last year, Machuca has noticed some surprising outcomes. While he recognized AI’s potential early on, he underestimated its ability to deliver rapid returns on investment and drive transformational changes in operational efficiency. The program has consistently enabled departments and organizations to optimize processes, turning tasks that once took hours into ones completed in mere minutes. “These advancements have led to significant financial savings and substantial productivity gains for clients, showcasing the profound impact AI can achieve when implemented thoughtfully and strategically,” he says.

Also, the speed at which businesses, nonprofits, government agencies, and other organizations are adopting the technology and requesting the program’s assistance is unprecedented. “This is one of the fastest growing and most successful programs we’ve ever launched,” Machuca says. “The intuitive nature of AI tools, combined with their versatility in addressing diverse needs, has resulted in an exceptionally high adoption rate. People across industries are finding these tools remarkably easy to use and invaluable for achieving their goals.”

Machuca has also gained some unexpected insights through the AI Resource Program. Despite the wealth of information available about AI, many organizations continue to face challenges in effectively leveraging or implementing it within their operations, he reveals. “We’ve concluded that the rapid pace of AI advancements and its expansion into diverse fields make it difficult for small businesses to keep up and identify the ideal tools, skills, and strategies necessary for successful adoption,” he says. “This underscores a significant gap in practical AI implementation and highlights the critical role of the program in providing tailored guidance, hands-on training, and ongoing support.”

In addition, the AI Resource Program has discovered that AI technology is particularly well suited to bridging the digital literacy gap in rural and remote communities. “The conversational nature of AI GPTs (also known as AI Assistants) enables individuals with limited internet experience to access powerful tools they wouldn’t have been able to use before,” Machuca says. “Coupled with the fact that satellite and broadband internet now covers the entire state, there’s an unprecedented opportunity to help rural and remote businesses and organizations overcome longstanding barriers to success.”

He adds, “These unexpected insights have reaffirmed the importance of establishing the program and its mission to empower organizations of all sizes and locations to thrive in the AI-driven era.”

Early on, the AI Resource Program sought to be a leader in advancing AI adoption. When OpenAI introduced ChatGPT in November 2022, the Alaska SBDC immediately recognized its transformative potential for streamlining processes and enhancing efficiency for small businesses and business advisory services, Machuca says. Under the leadership of Alaska SBDC Executive Director Jon Bittner and the forward-thinking initiative of Machuca—who was then SBDC’s Anchorage Center director—the center moved quickly to dedicate resources and time to experiment with AI technology. “This early action established the Alaska SBDC as a national leader in integrating AI into business advising,” Machuca says.

The center’s success quickly caught national attention. In 2023, the Alaska SBDC was invited to present at the annual America’s SBDC Conference, which hosts more than 4,000 SBDC advisors and staff from across the nation. Alaska’s leadership in AI was featured in two separate presentations, showcasing its innovative applications and results. These presentations attracted widespread interest from other centers, leading to the creation of an AI advisory group composed of like-minded SBDCs to collaborate on integrating AI into their operations.

The early adoption and demonstrated successes in Alaska caused other SBDC leaders to reach out to learn how to replicate the Alaska model. Today, the Alaska SBDC continues to lead by sharing its expertise and providing training to SBDC centers nationwide and beyond. “Over sixty SBDCs—including those in the [US] Virgin Islands, the Marshall Islands, and Turks and Caicos [Islands]—have benefited from this training,” Machuca explains. “These efforts have equipped SBDCs with the tools and knowledge to adopt AI effectively, enabling them to better serve their clients and elevate their capabilities.”

Today the AI Resource Program engages with a diverse array of organizations across the state, including the UA System, Native organizations, healthcare networks, local chambers of commerce, government entities, business groups, and Rotary clubs. The program has established mentorships for UAA students to explore AI applications in business contexts. Through the Alaska Chamber, it provides training for executives, and the program also hosts and participates in seminars with partner organizations.

“These collaborative efforts are designed to catalyze widespread AI adoption and integration throughout Alaska, creating a substantial impact across the community,” Machuca says.

The AI Resource Program is committed to advancing its leadership in AI innovation through a comprehensive three-year strategic plan. Its goals are to expand educational initiatives, develop advanced AI tools for business advisory services and administrative efficiency, deepen community engagement, and advocate for AI policies that foster equity and inclusivity. “We aim to empower businesses and organizations in Alaska and beyond with accessible, practical AI solutions that drive sustainable growth,” Machuca says.

In the coming years, the program intends to launch an AI user working group for SBDC centers nationwide, establish a dedicated AI user group for local organizations, develop an advanced series of AI workshops, expand its mentorship program, create AI tools for everyday business challenges, expand AI research and innovation capabilities, and create a monthly AI newsletter for its small business clients and advisors.

Machuca feels that AI offers transformative potential to revolutionize processes, enhance efficiencies, and create new opportunities for growth and innovation. And the AI Resource Program is proud to lead this effort by fostering a future where businesses and communities thrive through the power of AI. He says, “We look forward to collaborating with organizations and individuals who share our vision of advancing innovation and inclusivity and welcome everyone to join us on this journey of discovery and transformation.”

The Alaska Small Business Development Center (SBDC) AI Resource Program has created more than thirty AI-driven business advising tools to help small businesses launch, grow, and increase efficiency. Alaska SBDC advisors and support staff use these tools to ensure seamless collaboration and resource sharing:

• AI business plan tools: Assist advisors with analyzing business plans, crafting targeted outlines, and creating comprehensive, client-specific business plans.
• AI marketing workflows: Streamline marketing efforts by providing workflows to define target markets, build detailed buyer personas, identify effective advertising channels, map the buyer’s journey, develop marketing calendars, and guide clients in creating impactful marketing.
• AI operational tools: Improve organizational efficiency, in part, by configuring standard operating procedures tailored to specific business needs.
• AI demographic analysis tool: Enables strategic decision-making by offering detailed demographic data by zip code, helping businesses align their plans with local market dynamics.
• Additional AI tools: Include applications like business insurance configurators, business valuation calculators, sales pitch writers, and success story creators.

The AI Resource Program’s success in developing and deploying these tools has resulted in its organization becoming a national leader in business assistance AI services, according to Carlos Machuca, the program’s director. To date, the AI Resource Program has provided training and tools to more than sixty SBDCs nationwide as well as training for domain name registrar and web hosting company GoDaddy and for other national technology service providers.

The AI Resource Program shares many of these tools through OpenAI’s generative pre-trained transformer marketplace, enabling SBDCs across the nation to access and benefit from Alaska’s innovative solutions. “By fostering collaboration and knowledge sharing across the SBDC network, the program is amplifying its impact and supporting small businesses nationwide,” Machuca says.