The artificial intelligence industry as a whole may still be figuring out how to make AI profitable, but small businesses are already using it to boost their bottom lines while reducing costs.
A recent U.S. Chamber of Commerce study showed that 98% of small businesses surveyed were already using AI tools and technologies in their businesses. Leading the way are generative artificial intelligence tools like chatbots and image creators.
This is great news for Washington State, which is the second largest developer of AI technologies, right behind Silicon Valley. It’s also great news for the state’s half-million small businesses, which are embracing these new tools to automate a lot of processes that just a year or so ago were resource intensive.
- 87% of those surveyed said that technology platforms, in general, helped their businesses operate more efficiently.
- 95% said they had used at least one technology platform in running their business, a slight increase over 2022.
- Small businesses that have been heavy adopters of technology – using six or more types of technology – reported the most significant growth. Four out of five said they experienced an increase in sales, employment and profit.
- Notably, 79% of high-tech adopters reported increases in employment compared to just 62% of low-tech adopters. This runs counter to predictions that AI would replace employees.
- 78% of surveyed businesses said that technology platforms have helped them manage inflation and supply chain challenges without having to pass increased costs onto customers.
- 70% of small business owners agreed that without these technology platforms, they couldn’t survive. The use of technology helped them compete with larger firms without increasing costs.
- Most small businesses are still worried about having to navigate a complex patchwork of state AI and privacy laws.
How is AI helping? Timesavers include serving as a virtual assistant, creating email newsletters or other customer communications, summarizing meetings and reports, managing scheduling, handling social media, processing routine paperwork and writing correspondence.
Those surveyed noted that figuring out which tool is best for a business can be time-consuming initially, and the learning curves can be steep, in part because the technology is still developing. When used in marketing and advertising, it can be challenging to create messaging that makes you stand out from your competition, especially if your competitors are using the same tools and AI prompts.
Looking ahead, 85% of small businesses said they will increase their use of technology in the next two to three years and 71% plan to try out at least one form of emerging or cutting-edge technology.
When it comes to the future, 85 percent of small businesses expect to increase their use of technology over the next two to three years and 71 percent plan to use at least one form of emerging and cutting-edge technologies.