Investing in artificial intelligence doesn't require deep pockets—just smart strategy. That's the message from Nada Sanders, Distinguished Professor of Supply Chain Management at the D'Amore-McKim School of Business, who highlights how businesses can achieve AI success without massive financial investments.
Rethinking AI investment
One of the biggest misconceptions among business leaders is that achieving AI success requires enormous spending. Sanders challenges this belief, emphasizing that efficiency and creativity can outweigh brute financial force.
“The assumption that cutting-edge AI models require vast amounts of money overlooks ingenuity and creativity,” Sanders explains. “It is also crude, lacks finesse, and demonstrates a poor understanding of the problem at hand.”
A prime example is DeepSeek, a Chinese AI startup that recently launched its R1 model. Despite using lower-cost, less sophisticated chips, DeepSeek's AI outperformed more expensive models developed by industry giants, proving that strategic innovation can rival massive investments.
AI for all industries
The shift toward smaller, more efficient AI models isn't industry-specific—it's universal. Traditionally, tech giants like Microsoft, Meta, and Google have poured billions into AI infrastructure. But DeepSeek's approach, which delivered high performance at a fraction of the cost, shows that businesses across all sectors can benefit from AI without extravagant budgets.
“This should be eye-opening for business leaders,” Sanders says. “Rather than pursuing large, costly AI models, companies should invest in smaller, well-curated initiatives that are both effective and sustainable.”
For leaders, the biggest AI challenge remains to balance AI and human expertise. AI isn't about replacing human intelligence—it's about enhancing it. Sanders underscores the importance of human-AI integration, citing chess grandmaster Garry Kasparov's principle that average human expertise, when combined with the right AI tools and processes, can outperform superior AI or human intelligence alone.
“The key to success is designing processes that harmonize AI's capabilities with human judgment,” she notes. “It's not about having the most advanced tools, but about creating systems where AI and people work together effectively.”
Practical AI strategies for smaller businesses
Businesses don't need to break the bank to implement AI. Sanders outlines three key strategies for small and mid-sized companies to maximize AI without excessive costs:
- Build strong Human-AI teams – Foster collaboration between AI tools and employees to optimize decision-making. In supply chain management, for instance, AI predicts demand trends while human managers account for external variables.
- Design processes that enhance collaboration – Establish workflows where AI offers data-driven insights but humans make the final call. For example, in customer service, AI can handle routine queries while humans manage complex interactions.
- Foster continuous feedback loops – Ensure AI systems evolve by incorporating human feedback. Regular updates based on real-world results keep AI models adaptive and responsive to new challenges.
As AI continues to shape the business world, Sanders urges leaders to rethink their approach. “AI success isn't about spending more—it's about spending wisely,” Sanders says.