As with any new innovation, many questions naturally arise on how emerging technologies will impact small businesses and their ability to compete and grow. The newest edition of the annual “Small Business Technology Use Survey” from the Small Business and Entrepreneurship (SBE) Council shows that small businesses owners are very optimistic about new digital tools.
The rise of artificial intelligence (AI)-powered tools is playing an increasingly important role for consumers to business owners.
The SBE Council surveyed small business owners and found that 81% said AI is important to their competitiveness and growth, and 90% expressed confidence in their ability to adopt new digital tools and AI products. Digging further into the data, their positive outlook is a promising sign of the success small businesses and workers are positioned to have as the use of AI and digital tools continues to grow.
Bullish on Workers
In the media, there is a lot of speculation circulating about how AI will impact the workforce and jobs. The reality on Main Street is quite optimistic, small businesses remain committed to their people, and many want to hire more folks and increase wages.
SBE Council’s survey reports that small business leaders actually view AI tools as a way to support their workers, not replace them. 52% said AI use is meant to complement their employees’ work, while 93% plan to maintain or increase staffing levels. 40% even said they plan to increase hiring.
Small business leaders are actually perceiving AI tools as force multipliers to assist low-resourced teams achieve more without the burnout.
Growing Affordability and Competition
Barriers to market entry have always been one of the greatest hurdles for new businesses, but today, digital services are leveling the playing field for smaller firms. According to SBE Council, 74% of respondents said digital services make it easier to compete with larger businesses.
One of the most significant areas of impact is marketing. In the past, a massive advertising budget was required to reach an audience, be it national or local. Now, social media dominates marketing efforts for small businesses, as respondents reported that social media marketing delivers the highest return on investment for them, with 64% using it as their primary tool to reach customers.
When small businesses have access to affordable, data-driven digital tools, they are thriving. 81% of users in the SBE Council survey specifically mentioned that AI tools are becoming critical for their ability to stay competitive and grow in an increasingly crowded marketplace.
Key Takeaways
American entrepreneurs are clear in the SBE Council’s tech use survey: digital tools and AI innovation is helping them to compete and win in the modern economy.
- Confidence: 90% of small business leaders feel confident adopting AI.
- Growth: 81% say AI is vital for competitiveness.
- Jobs: 93% will maintain or grow their staff.
- Competition: 74% say digital tools help them take on Big Tech and larger rivals.
These products are helping small business leaders drive success, support their workers, increase hiring and compete more effectively with larger companies. As policymakers consider how to govern innovation, they should listen to the voices of the small business owners who are using these tools to build the future of the American economy.
Image via Unsplash.