AI’s unfulfilled promise to small businesses

Artificial intelligence (AI) has become a widely accessible tool, but its promise of efficiency remains unfulfilled for many small and midsize businesses (SMBs). AI tools are not designed with SMBs in mind, and their adoption strategies should differ from those of large enterprises. SMBs often lack the resources, data, and IT expertise to implement complex AI models, leading to poor adoption rates. Instead of trying to mirror enterprise AI adoption, SMBs should focus on core operations and lay the groundwork for AI to enhance their workflows. The adoption of AI by SMBs has dropped to 28% this year, a 33% year-over-year decline, due to a poor understanding of AI and its learning curves. SMBs should start small, choosing one area to implement AI and measuring results before expanding further. They can explore AI features already built into their existing tech stack, such as Microsoft Office or Google Workspace, to lower the barrier to entry. AI can be effective in repetitive tasks and creative ideation, but human oversight is necessary to review AI-produced materials. AI is not inherently secure, and SMBs should understand how their data will be stored and used before inputting sensitive information into AI tools. With a measured approach, SMBs can capture the benefits of AI without overinvestment or complicating their workflows.