Could Ethical Automation Benefit SMBs in the Long Run? ● Question

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Fundamentals

Ninety-nine percent of businesses in the United States are small businesses, yet they often operate under the shadow of larger corporations when discussions turn to technological advancements. Automation, once a concept reserved for sprawling factories and multinational giants, now whispers promises of efficiency and growth to even the smallest storefronts. However, the allure of automation can quickly become a siren song if ethical considerations are not placed at the forefront, particularly for small and medium-sized businesses (SMBs) navigating tight budgets and community-centric values.

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Understanding Ethical Automation in the SMB Context

Ethical automation for SMBs Meaning ● Strategic tech integration for SMB efficiency, growth, and competitive edge. isn’t about building robots with feelings; it’s about implementing automated systems responsibly and thoughtfully. Think of it as automating tasks in a way that respects your employees, customers, and the very fabric of your local community. It’s about ensuring that technology serves to enhance human capabilities rather than replace them thoughtlessly.

For an SMB, this might look different than for a massive corporation. A local bakery automating its online ordering system ethically considers data privacy Meaning ● Data privacy for SMBs is the responsible handling of personal data to build trust and enable sustainable business growth. for its regulars and ensures the system is accessible to all customers, including those less tech-savvy.

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Why Ethical Automation Matters Now

The digital age has democratized access to automation tools. Cloud-based software, AI-powered apps, and readily available APIs mean even the smallest business can automate tasks previously requiring entire departments. This accessibility, while empowering, also presents a challenge. Without a conscious ethical framework, SMBs risk replicating the pitfalls of larger entities, potentially alienating customers or creating internal imbalances.

Consider the local hardware store adopting AI-driven inventory management. Ethical implementation means ensuring the system improves efficiency without sacrificing the personalized customer service Meaning ● Customer service, within the context of SMB growth, involves providing assistance and support to customers before, during, and after a purchase, a vital function for business survival. that sets them apart from big box retailers.

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Initial Steps Towards Ethical Automation

For an SMB owner just starting to consider automation, the prospect can feel overwhelming. Where do you even begin with “ethical automation”? Start small. Begin by assessing your current processes.

Identify tasks that are repetitive, time-consuming, or prone to error. These are prime candidates for automation. But before jumping into implementation, ask yourself some crucial questions:

Impact on Employees ● Will this automation displace any jobs? If so, how can we retrain or redeploy those employees? Ethical automation Meaning ● Ethical Automation for SMBs: Integrating technology responsibly for sustainable growth and equitable outcomes. isn’t about firing staff; it’s about freeing them from mundane tasks to focus on higher-value activities.
Customer Data Privacy ● What customer data will this automation collect? How will it be stored and protected? SMBs often thrive on trust; data breaches can shatter that trust instantly.
Transparency ● Will customers and employees understand how this automation works? Opacity breeds suspicion. Being upfront about automated processes builds confidence.
Accessibility ● Will this automation be accessible to all customers, including those with disabilities or limited tech literacy? Ethical automation should be inclusive, not exclusive.

Ethical automation in SMBs Meaning ● Automation in SMBs is strategically using tech to streamline tasks, innovate, and grow sustainably, not just for efficiency, but for long-term competitive advantage. is about thoughtfully integrating technology to enhance operations and human roles, not to thoughtlessly replace them.

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Practical Examples of Ethical Automation for SMBs

Let’s ground this in real-world scenarios. Imagine a small accounting firm. They could ethically automate their client onboarding process using a secure, user-friendly online portal. This portal would collect necessary client information, but with clear data privacy policies and transparent communication about how the data is used.

Employees are freed from manual data entry, allowing them to focus on client consultation and financial strategy. Consider a local restaurant implementing online ordering. Ethical automation here means ensuring the online system is accessible on various devices, offering clear allergy information, and maintaining the restaurant’s commitment to fresh, locally sourced ingredients, even in the automated process.

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Addressing Common SMB Concerns About Automation

Many SMB owners harbor valid concerns about automation. Cost is a big one. Ethical automation doesn’t have to break the bank. Start with affordable, scalable solutions.

Cloud-based tools often offer subscription models that align with SMB budgets. Another concern is complexity. SMB owners might feel they lack the technical expertise to implement automation. Focus on user-friendly platforms and seek support from vendors who understand SMB needs.

Finally, there’s the fear of losing the personal touch. Ethical automation should enhance, not replace, human interaction. Use automation to streamline back-end processes, freeing up staff to provide even better customer service and build stronger client relationships.

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Building a Foundation for Long-Term Benefit

Embracing ethical automation isn’t a quick fix; it’s a long-term strategy. By starting with a thoughtful approach, SMBs can lay the groundwork for sustainable growth Meaning ● Sustainable SMB growth is balanced expansion, mitigating risks, valuing stakeholders, and leveraging automation for long-term resilience and positive impact. and resilience. Ethical automation can lead to increased efficiency, reduced errors, improved customer satisfaction, and happier employees.

These benefits, compounded over time, can provide a significant competitive advantage Meaning ● SMB Competitive Advantage: Ecosystem-embedded, hyper-personalized value, sustained by strategic automation, ensuring resilience & impact. for SMBs, allowing them to not just survive, but thrive in an increasingly automated world. It’s about building a business that is both technologically advanced and deeply human-centric, a powerful combination for long-term success.

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Intermediate

The initial hesitation surrounding automation within SMBs often stems from a perception of it as a costly, impersonal endeavor best suited for large corporations. However, overlooking the strategic integration of ethical automation is akin to ignoring a rising tide; it’s not a matter of if automation will impact SMBs, but how proactively they will adapt and leverage it responsibly. For the intermediate SMB ready to move beyond basic considerations, ethical automation becomes less about initial adoption and more about strategic implementation aligned with long-term business objectives.

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Strategic Alignment of Ethical Automation with SMB Growth

Ethical automation, when strategically implemented, transcends mere efficiency gains; it becomes a catalyst for sustainable growth. For SMBs, growth isn’t solely about revenue; it’s about building resilience, enhancing brand reputation, and fostering customer loyalty. Ethical automation directly contributes to these facets. Consider an e-commerce SMB aiming to scale.

Implementing an ethically designed AI-powered recommendation engine not only boosts sales but also enhances customer experience by providing relevant suggestions while respecting data privacy. This strategic approach contrasts sharply with simply automating for cost reduction without considering broader ethical and growth implications.

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Navigating the Ethical Landscape of Automation Technologies

As SMBs delve deeper into automation, the technological landscape becomes more complex. From robotic process automation Meaning ● RPA for SMBs: Software robots automating routine tasks, boosting efficiency and enabling growth. (RPA) to sophisticated machine learning Meaning ● Machine Learning (ML), in the context of Small and Medium-sized Businesses (SMBs), represents a suite of algorithms that enable computer systems to learn from data without explicit programming, driving automation and enhancing decision-making. algorithms, the options are vast. Navigating this landscape ethically requires a discerning approach. It’s about understanding the inherent biases in algorithms, ensuring data security Meaning ● Data Security, in the context of SMB growth, automation, and implementation, represents the policies, practices, and technologies deployed to safeguard digital assets from unauthorized access, use, disclosure, disruption, modification, or destruction. across integrated systems, and maintaining transparency in automated decision-making processes.

For instance, an SMB using AI for recruitment needs to be acutely aware of algorithmic bias that could perpetuate discriminatory hiring practices. Ethical automation in this context demands rigorous testing, continuous monitoring, and a commitment to fairness in algorithmic outcomes.

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Implementing Ethical Automation Across SMB Operations

Ethical automation isn’t confined to a single department; it should permeate all aspects of SMB operations. From marketing and sales to customer service and supply chain management, every area presents opportunities for ethical automation implementation. In marketing, ethical automation means using personalized marketing techniques responsibly, avoiding manipulative tactics, and respecting customer preferences. In customer service, it involves deploying chatbots to enhance support without sacrificing human interaction for complex issues.

In supply chain, it entails using data analytics to optimize logistics while ensuring fair labor practices and environmental sustainability within the automated processes. A holistic approach ensures that ethical considerations are embedded in the very DNA of the SMB’s automated systems.

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Addressing Intermediate-Level Challenges and Concerns

Moving beyond the fundamentals, SMBs encounter more nuanced challenges. One key concern is the integration of ethical automation with existing legacy systems. Many SMBs operate with a patchwork of older technologies. Ethical automation implementation Meaning ● Strategic integration of tech to boost SMB efficiency, growth, and competitiveness. needs to consider interoperability and data migration challenges while maintaining data security and system integrity.

Another challenge is talent acquisition and training. Implementing and managing sophisticated automation tools Meaning ● Automation Tools, within the sphere of SMB growth, represent software solutions and digital instruments designed to streamline and automate repetitive business tasks, minimizing manual intervention. requires skilled personnel. SMBs need to invest in upskilling their existing workforce or strategically hiring individuals with expertise in ethical AI Meaning ● Ethical AI for SMBs means using AI responsibly to build trust, ensure fairness, and drive sustainable growth, not just for profit but for societal benefit. and automation management. Furthermore, measuring the ROI of ethical automation requires a shift in metrics. Success isn’t just about cost savings; it’s also about measuring improvements in customer trust, employee morale, and brand reputation, all of which are crucial for long-term SMB success.

Strategic ethical automation in SMBs Meaning ● Ethical Automation in SMBs: Responsible tech integration prioritizing ethics, stakeholders, and sustainable growth. is about aligning technological advancements with core business values to foster sustainable growth and build lasting stakeholder trust.

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Case Studies ● Ethical Automation in Action for SMBs

To illustrate practical application, consider a mid-sized manufacturing SMB adopting industrial automation. Ethical implementation involves transparent communication with employees about the changes, retraining opportunities for those whose roles are affected, and ensuring workplace safety within the automated environment. Another example is a healthcare SMB using AI for patient scheduling and reminders.

Ethical automation here necessitates robust data privacy measures, HIPAA compliance, and ensuring that automated reminders are sensitive and patient-centric, not intrusive or impersonal. These case studies highlight that ethical automation is not a theoretical concept but a tangible approach applicable across diverse SMB sectors.

Building a Competitive Advantage with Ethical Automation

In an increasingly competitive market, ethical automation can become a significant differentiator for SMBs. Customers are becoming more discerning, valuing businesses that operate responsibly and ethically. SMBs that prioritize ethical automation can build a stronger brand reputation, attract and retain customers who align with their values, and even gain a competitive edge in attracting talent.

Employees are increasingly drawn to companies that demonstrate a commitment to ethical practices. By embracing ethical automation, SMBs can position themselves as forward-thinking, responsible businesses, fostering both customer loyalty Meaning ● Customer loyalty for SMBs is the ongoing commitment of customers to repeatedly choose your business, fostering growth and stability. and employee engagement, crucial assets for long-term competitive advantage.

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Table ● Ethical Automation Considerations Across SMB Functions

To provide a structured overview, the following table outlines ethical considerations across different SMB functions when implementing automation:

SMB Function Marketing

Automation Application Personalized Email Campaigns

Ethical Considerations Data privacy, transparency in data usage, avoiding manipulative tactics, respecting opt-out preferences.

SMB Function Sales

Automation Application AI-powered Lead Scoring

Ethical Considerations Algorithmic fairness, avoiding bias in lead prioritization, ensuring human oversight in sales processes.

SMB Function Customer Service

Automation Application Chatbots for Initial Support

Ethical Considerations Transparency about chatbot interaction, seamless escalation to human agents, data security in customer interactions.

SMB Function HR

Automation Application Automated Applicant Tracking Systems

Ethical Considerations Algorithmic bias in resume screening, ensuring equal opportunity, data privacy of applicant information.

SMB Function Operations

Automation Application Robotic Process Automation (RPA) for Data Entry

Ethical Considerations Employee retraining and redeployment, ensuring job satisfaction in evolving roles, data accuracy and integrity.

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Moving Towards Advanced Ethical Automation Strategies

For the intermediate SMB, ethical automation is about building a robust foundation. It’s about moving beyond initial adoption to strategic integration, navigating the complexities of technology, and addressing intermediate-level challenges. This phase sets the stage for more advanced ethical automation strategies, where SMBs can leverage cutting-edge technologies to not only enhance their operations but also contribute to a more ethical and responsible business ecosystem. The journey from basic understanding to strategic implementation is crucial for SMBs seeking long-term benefits from ethical automation.

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Advanced

Beyond the operational efficiencies and strategic advantages, ethical automation for SMBs Meaning ● Ethical Automation for SMBs: Integrating technology responsibly to enhance efficiency while upholding moral principles and stakeholder well-being. in the long run intersects with broader societal and economic trends, demanding a sophisticated and forward-thinking approach. For advanced SMBs, ethical automation is no longer merely a matter of responsible implementation; it becomes a cornerstone of their business model, a source of innovation, and a contribution to a more equitable and sustainable future. This advanced perspective requires a deep understanding of the evolving ethical landscape, the transformative potential of emerging technologies, and the long-term implications for SMB growth Meaning ● SMB Growth is the strategic expansion of small to medium businesses focusing on sustainable value, ethical practices, and advanced automation for long-term success. and societal impact.

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Ethical Automation as a Source of SMB Innovation and Differentiation

Advanced SMBs recognize ethical automation not just as a cost-saving measure but as a powerful engine for innovation. By prioritizing ethical considerations in their automation strategies, they unlock new avenues for product and service development, creating a unique value proposition that resonates with ethically conscious consumers and businesses. Consider a fintech SMB developing AI-driven financial planning tools.

Ethical innovation here involves building algorithms that are transparent, explainable, and free from bias, ensuring equitable access to financial services and building trust with users. This commitment to ethical AI becomes a key differentiator, attracting customers who value responsible technology and fostering long-term brand loyalty.

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Leveraging Advanced Technologies Ethically ● AI, Machine Learning, and Beyond

The advanced stage of ethical automation involves grappling with the complexities of cutting-edge technologies like artificial intelligence (AI), machine learning (ML), and advanced robotics. These technologies offer immense potential but also pose significant ethical challenges. For SMBs leveraging AI and ML, ethical considerations extend beyond data privacy to encompass algorithmic transparency, bias mitigation, and the potential for unintended consequences.

For example, an SMB using advanced ML for predictive analytics needs to ensure that the models are not perpetuating existing societal biases or leading to discriminatory outcomes. Ethical AI development requires rigorous testing, continuous monitoring, and a commitment to algorithmic accountability, ensuring that advanced technologies are deployed responsibly and for the benefit of all stakeholders.

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Building Ethical Automation Frameworks Tailored for SMBs

Large corporations often have dedicated ethics boards and extensive compliance departments to oversee ethical automation. SMBs, however, require more agile and tailored frameworks. Advanced SMBs proactively develop internal ethical guidelines and frameworks that are specifically designed for their size, resources, and values. These frameworks should address key ethical principles such as fairness, transparency, accountability, and data privacy, providing a practical roadmap for ethical automation implementation Meaning ● Ethical Automation Implementation in SMBs means responsibly integrating tech to boost growth while upholding moral principles and societal well-being. across all business functions.

This might involve establishing an internal ethics committee, conducting regular ethical audits of automated systems, and providing ongoing training to employees on ethical automation principles. A tailored ethical framework ensures that ethical considerations are embedded in the SMB’s culture and decision-making processes, fostering a proactive and responsible approach to automation.

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Addressing Long-Term Societal and Economic Implications

Advanced ethical automation strategies Meaning ● Ethical Automation Strategies for SMBs: Integrating technology responsibly to boost efficiency and uphold ethical values. also consider the broader societal and economic implications. As automation becomes more pervasive, concerns about job displacement, economic inequality, and the digital divide become increasingly relevant. Ethical SMBs recognize their role in mitigating these potential negative impacts.

This might involve investing in employee retraining and upskilling programs to prepare their workforce for the changing job market, supporting initiatives that promote digital literacy and equitable access to technology within their communities, and advocating for policies that foster responsible automation and a more inclusive economy. By taking a long-term, societal perspective, advanced SMBs contribute to a more sustainable and equitable future, while also strengthening their own long-term business viability.

Advanced ethical automation in SMBs is about leveraging cutting-edge technologies responsibly, driving innovation ethically, and contributing to a more equitable and sustainable business ecosystem.

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The Role of Ethical Automation in Fostering SMB Resilience

In an era of rapid technological change and increasing economic uncertainty, resilience is paramount for SMB survival and growth. Ethical automation plays a crucial role in fostering SMB resilience in several ways. Firstly, it enhances operational efficiency and agility, allowing SMBs to adapt quickly to changing market conditions and unexpected disruptions. Secondly, it strengthens brand reputation Meaning ● Brand reputation, for a Small or Medium-sized Business (SMB), represents the aggregate perception stakeholders hold regarding its reliability, quality, and values. and customer loyalty, providing a buffer against economic downturns and competitive pressures.

Thirdly, it fosters employee engagement and retention, creating a stable and motivated workforce that is essential for long-term resilience. By prioritizing ethical automation, SMBs build a more robust and adaptable business model, positioning themselves for sustained success in the face of future challenges.

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Future Trends in Ethical Automation and SMB Opportunities

The field of ethical automation is constantly evolving, driven by advancements in technology, changing societal expectations, and increasing regulatory scrutiny. Future trends that will shape ethical automation for SMBs include the development of more explainable and transparent AI algorithms, the emergence of ethical AI standards and certifications, and the growing importance of data ethics and responsible data governance. SMBs that stay ahead of these trends and proactively integrate ethical considerations into their automation strategies Meaning ● Automation Strategies, within the context of Small and Medium-sized Businesses (SMBs), represent a coordinated approach to integrating technology and software solutions to streamline business processes. will be best positioned to capitalize on the opportunities presented by advanced technologies while mitigating the associated risks. This proactive approach will not only enhance their own competitiveness but also contribute to shaping a more ethical and responsible future for automation in business.

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List ● Key Principles of Advanced Ethical Automation for SMBs

To summarize, advanced ethical automation for SMBs is guided by the following key principles:

Proactive Ethical Frameworks ● Develop tailored ethical guidelines and frameworks that are embedded in the SMB’s culture and decision-making processes.
Algorithmic Accountability ● Ensure transparency, explainability, and bias mitigation in AI and ML algorithms, with rigorous testing and continuous monitoring.
Data Ethics and Governance ● Implement robust data privacy measures, responsible data collection and usage practices, and ethical data governance policies.
Societal Impact Consideration ● Address the broader societal and economic implications of automation, including job displacement and digital equity.
Employee Empowerment ● Invest in employee retraining and upskilling programs to prepare the workforce for the changing job market.
Stakeholder Engagement ● Engage with employees, customers, and communities to build trust and ensure ethical alignment in automation initiatives.
Continuous Ethical Auditing ● Conduct regular ethical audits of automated systems to identify and address potential ethical risks and ensure ongoing compliance.
Innovation with Ethics ● Leverage ethical automation as a driver for innovation, creating unique value propositions and differentiating the SMB in the market.

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Table ● Advanced Ethical Automation Tools and Technologies for SMBs

The following table highlights advanced tools and technologies that SMBs can leverage for ethical automation, along with their ethical considerations:

Tool/Technology Explainable AI (XAI)

Description AI models designed to provide clear and understandable explanations for their decisions.

Ethical Considerations Ensuring true explainability, avoiding "black box" algorithms, building trust and transparency.

Tool/Technology Federated Learning

Description Machine learning approach that trains algorithms across decentralized datasets while preserving data privacy.

Ethical Considerations Maintaining data security across distributed systems, addressing potential bias in decentralized data.

Tool/Technology Differential Privacy

Description Technique for adding statistical noise to datasets to protect individual privacy while enabling data analysis.

Ethical Considerations Balancing privacy protection with data utility, ensuring accuracy and relevance of anonymized data.

Tool/Technology Ethical AI Auditing Platforms

Description Platforms that automate the process of auditing AI systems for bias, fairness, and transparency.

Ethical Considerations Ensuring the auditing platforms themselves are unbiased and reliable, using audits to drive meaningful improvements.

Tool/Technology Responsible AI Frameworks (e.g., IEEE Ethically Aligned Design)

Description Comprehensive frameworks providing ethical guidelines and principles for AI development and deployment.

Ethical Considerations Tailoring frameworks to SMB context, translating principles into practical implementation steps.

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The Long-Term Vision ● Ethical Automation as a Foundation for SMB Success

For advanced SMBs, ethical automation is not a destination but an ongoing journey. It’s about continuously evolving their ethical frameworks, adapting to new technologies, and deepening their commitment to responsible business practices. In the long run, ethical automation becomes a fundamental pillar of SMB success, driving innovation, fostering resilience, and building a sustainable and equitable business for the future. By embracing ethical automation at an advanced level, SMBs not only benefit themselves but also contribute to shaping a more ethical and responsible technological landscape for the entire business world.

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References

Bostrom, Nick. Superintelligence ● Paths, Dangers, Strategies. Oxford University Press, 2014.
Brynjolfsson, Erik, and Andrew McAfee. The Second Machine Age ● Work, Progress, and Prosperity in a Time of Brilliant Technologies. W. W. Norton & Company, 2014.
Dignum, Virginia. Responsible Artificial Intelligence ● How to Develop and Use AI in a Responsible Way. Springer, 2019.
Floridi, Luciano. The Ethics of Information. Oxford University Press, 2013.
O’Neil, Cathy. Weapons of Math Destruction ● How Big Data Increases Inequality and Threatens Democracy. Crown, 2016.

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Reflection

Perhaps the most radical, and arguably uncomfortable, truth about ethical automation for SMBs is that it challenges the very notion of “smallness” as a shield against ethical scrutiny. The assumption that SMBs, by virtue of their size, are inherently more ethical or less impactful than large corporations is a dangerous fallacy. In fact, the close-knit nature of SMBs, their deep community ties, and the personal relationships they foster with both employees and customers amplify the ethical stakes.

A lapse in ethical judgment, a misstep in automated processes, can resonate far more profoundly within a smaller ecosystem. Therefore, ethical automation for SMBs is not merely a responsible business practice; it is an existential imperative, a recognition that in the long run, genuine sustainability and growth are inextricably linked to ethical integrity, regardless of scale.

Ethical Automation, SMB Growth, Responsible Technology

Ethical automation empowers SMBs for long-term benefit by fostering trust, efficiency, and sustainable growth.

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Explore

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Could Ethical Automation Benefit SMBs in the Long Run?