How AI can strengthen the industrial SME sector

AI has the potential to bring lasting change to the world—much like the steam engine, the industrial use of electricity, and the internet. For several years, scientists have even been referring to this development as the fifth industrial revolution.

Companies could deploy AI in a targeted and customized manner. By digitally networking all suppliers along the value chain, production steps could be coordinated, machine utilization optimized, and manufacturing made more flexible and demand-driven. Intelligent algorithms could optimize delivery routes, while machines independently report material requirements—creating a seamless and sustainable flow of goods.

Despite this potential, many SMEs are still in the early stages when it comes to AI adoption.

There are several reasons for this:

• Lack of expertise: Many companies currently lack the internal competencies to successfully implement AI projects.
• Insufficient data infrastructure: AI requires structured, high-quality data in large quantities. While most companies have sufficient data, it is often unstructured and difficult to access due to outdated legacy systems.
• Costs: The initial investment required for AI implementation is often seen as a barrier.
• Concerns about data protection and security: In Europe, particularly in Germany, strict regulations govern AI usage. Companies proceed cautiously to avoid legal violations.
• Lack of integration into existing processes: AI should complement existing systems rather than replace them. However, poor process analysis often prevents meaningful integration.

Eidos, a company within the Possehl Group, demonstrates that these obstacles do not have to be roadblocks.

One SME that is already successfully utilizing AI is Eidos. The Italian company has specialized in the development of thermal transfer digital printers for over 40 years. Since 2017, Eidos has been part of the Possehl Group.

Eidos CEO Paolo Bori recognized early on that AI is a key factor for future competitiveness. Over the past few years, the company has successfully increased its revenues while maintaining the same team size. The company consistently embraces new technologies.

“For us, AI is a key tool in trying to find efficiency in manual tasks – from customer service to any kind of document management. We see this as a key strategic pillar onto which we can build the future growth of Eidos.” – Paolo Bori

Eidos uses ChatGPT for software development, outsourcing parts of the coding process. In day-to-day office work, AI helps create presentations faster or summarize texts.

Additionally, translation tasks have been delegated to AI tools, such as in video production. Previously, multiple videos had to be recorded in different languages; now, a single video can be translated into all desired languages. Machine manuals that used to cost thousands of euros for translation can now be created in just 30 minutes at a fraction of the cost.

Eidos shows that AI implementation does not have to be expensive. The company spends approximately €2,000 per year on AI applications—a fraction of what translation agencies and additional specialists would cost to achieve the same output.

Due to these low entry costs, Paolo Bori encourages his employees to experiment with new technologies. The company follows a structured approach where individual employees test new technologies first, before rolling them out more broadly. This way, expertise is gradually built internally without relying on external specialists.

Other AI use cases, such as a service chatbot and offline solutions, are currently in development. With openness to technology and a passion for innovation, even small businesses can use AI efficiently.

To stay competitive globally, companies need innovation and a willingness to embrace digital transformation. Eidos demonstrates that transformation can succeed with minimal resource investment and a commitment to new technologies.

As a digital innovation driver in the SME sector, we have made it our mission to support companies—through our portfolio investments—that face similar challenges as Eidos and are ready to integrate new technologies into their processes. That’s why we have included tech companies in our portfolio that offer tailored solutions for SMEs.

Our approach is based on three key principles:

• Pragmatic and practical solutions: No abstract theories—only AI applications that quickly deliver value.
• Simple implementation and integration: Our solutions can be integrated into existing systems without deep IT knowledge.
• Employee engagement and trust-building: We focus on explainable AI and close collaboration with users.

Our portfolio company DataSpark has extensive experience in AI implementation across various business areas. Here are six key AI use cases:

1. Sales & Marketing: Handling inquiries and tenders, generating automated offers, and analyzing customer and competitor activities.
2. Service: Routing and responding to service requests, as well as categorizing and extracting information from service reports using AI applications.
3. Procurement: Evaluating and comparing supplier offers, as well as monitoring and managing supplier contracts.
4. Finance: Automating financial reporting and commentary, along with rapid data analysis for informed financial decision-making.
5. Compliance: Assessing third-party risks and automatically generating compliance reports for various regulatory requirements.
6. IT: Automating ticket processing in IT helpdesks.

The key to AI adoption is a pragmatic, step-by-step approach to quickly achieve value creation. This reduces fears surrounding AI while building experience that can shape long-term strategy.