Ask an Expert: The State of AI for Small Businesses
Artificial intelligence (AI) is transforming industries at an unprecedented rate, and small businesses are no exception. In our latest AI report, we explore how small businesses are leveraging AI to enhance efficiency, drive growth, and stay competitive in an ever-evolving market.
To provide deeper insights, we’ve gathered expert opinions from industry leaders who share their perspectives on the opportunities, challenges, and future of AI for small businesses. Their insights not only shed light on the practical applications of AI but also offer actionable strategies for business owners looking to embrace this cutting-edge technology.
Q: Was there Anything in the report that surprised you?
Across the board, our experts were the most surprised by the reluctance of small businesses to adopt AI tools.
Darryl Stevens, Founder and CEO of DIGITECH, said, “Our focus has always been on utilizing AI across functions at DIGITECH, which has obviously translated into better efficiency and growth. I thought AI would have proven its value by now.” Stevens said that this reluctance seems to be a result of small businesses misunderstanding the ease of AI implementation.
“I see many small businesses that think by simply adopting AI, they're embracing a radical ‘all-or-nothing’ strategy, which is false, he said. “AI can be leveraged in a smaller sandbox to produce immediate value without the need for an entire operational rewrite.”
Debbie Moran, marketing manager at RecurPost, echoed this surprise, specifically regarding the portion of non-AI adopters who have no plans to adopt AI in the future, saying, “Given AI's potential to streamline operations and enhance customer engagement, this hesitation was unexpected.”
Another expert was surprised by the fact that 77% of businesses use AI daily. Mimi Nguyen, founder of Cafely, said that she was encouraged to see this data as it reaffirmed that her business is on the right track with its AI efforts.
Q: On the other hand, were there any trends you predicted?
Nguyen was unsurprised, however, that many sole proprietors are hesitant to use AI.
As the founder of a small business herself, she is uniquely positioned to understand this struggle, saying, “It makes sense because sole proprietors often have limited resources and budgets, making it hard to really invest in new technologies. At Cafely, having a team allowed us to share the workload of exploring AI tools together.”
Arham Khan, founder and CEO of Pixated, said that his company’s experience helped him predict the high use of AI in marketing and customer experience management.
“Many small businesses see how they can leverage AI for personalized marketing, predictive analytics, and automating customer support,” he said. “This can drive better customer engagement and improved ROI, which aligns with what we’ve observed in our own work with clients.”
Finally, Moran also noted that the challenges reported align with what she’s observed, including cost and lack of expertise, stating that many small businesses struggle with the initial investment and the learning curve associated with AI technologies.
Q: What are your thoughts on the challenges listed in the report? How would you recommend SMBs overcome them?
As AI adopters themselves, many of our experts resonated with the challenges small businesses listed in the report.
James Wilkinson, CEO of Balance One Supplements, said that the challenge to measure the return on investment of AI is something he has experienced firsthand.
“The report notes that 38% of mid-range companies face challenges in quantifying ROI on AI tools,” he said. “We understand the benefits of AI in areas such as product recommendation and targeted marketing, but it’s hard to show how it drives revenue right off the bat.”
Additionally, Wilkinson shared his advice for tackling the common problem of quantifying ROI.
“Here at Balance One, we suggest SMBs take a dual approach to solve this problem,” he said. “The first is to take it slowly and focus on problems that AI can effectively solve. For example, we set up an AI-driven chatbot to assist with simple customer questions.”
This solution helped his company by increasing customer satisfaction through 24/7 support while also freeing up their team for more high-level tasks.
According to Wilkinson, the return on investment was clear: fewer customer service loads and better team productivity.
The second part of Wilkinson’s dual approach? Data analytics.
“Monitor customer experience, conversions, and website traffic before and after deploying AI tools,” he said. “While some outcomes will be subjective, such as a better customer experience, others will be tangible—increased sales or lower customer support costs.”
Through careful data documentation, Wilkinson said that even the smallest startups can make a case for AI and its potential ROI.
Q: Do you have any predictions for the future of AI for small businesses?
Many of the experts pointed out that the future is promising for small businesses open to using AI.
Arvind Rongala, CEO at Edstellar, predicts that AI is going to even the playing field for SMBs open to using it.
“As AI tools get cheaper and easier to use, small businesses will be able to do things that used to only be possible for big businesses,” he said. At his company, they have already experienced how AI can help make complex systems simpler.
Darryl Stevens echoed the prediction that AI will help simplify complex processes for small businesses.
“In my opinion,” Stevens said, “the future of AI for small businesses is going to be all about accessibility and personalization. With the increasing accessibility of low-code and no-code AI solutions, I foresee that small businesses will be able to incorporate AI without deep technical talent.”
He added that he predicted more AI tools would be built specifically for small and medium-sized businesses.
“I think within a handful of years from now, AI will become so embedded in the tools we use economically that they won't feel like an add-in and will rather just be part of business as usual.”
Q: What advice would you give to small businesses looking to see more success with AI in the future?
Our experts recommend that businesses start small and practical regarding AI. Even though jumping on the bandwagon of the newest, shiniest tool may seem critical, small businesses should be strategic with AI adoption.
Ken Marshall, CSO at Revenue Zen, recommended that small businesses ask themselves the following questions:
- What business outcome do you want to achieve?
- What tactics are needed to get you there?
- What is the right resource for each tactic?
“If you have those considerations mapped out from the start,” he said, “you'll choose the best tool or human being for the job versus trying to find a use case for the solution you stumbled upon and want to make work.”
Q: What would you say to the 78% of companies that don't currently use AI and have no plans to adopt it in the future?
Despite the surprise our experts reported at the number of companies who don’t plan to adopt AI, John Pennypacker from Deep Cognition said that it reminds him of the early days of cloud computing.
The VP of Sales and Marketing said, “Many businesses initially viewed cloud as complex and risky, but now it's standard practice. From our work with mid-sized companies, I've found that this hesitation often stems from misconceptions about implementation complexity.”
Pennypacker went on to say that what is interesting is that many of these businesses are actually using AI, from email filters to document processing—they just don’t know it.
“My advice is to start small,” he said. “Pick one workflow that's currently manual and repetitive. For instance, one of our retail clients began with just automated inventory forecasting, which gave them a clear, contained way to understand AI's impact before expanding further.”
Of course, it’s not just businesses in the tech world that should invest in AI. That’s why John Wilson, owner and CEO of Wilson Plumbing and Heating, said that AI is essential.
“I’d say [the companies not planning to use AI] are missing out,” Wilson said. “AI can make operations smoother and improve customer service, which matters in our industry. Even basic tools can help with scheduling and handling customer questions better.”
Q: Why do you think companies still overwhelmingly adopt AI Despite Mixed feelings about it?
“Despite the mixed feelings, the benefits of AI—like cost savings, better customer insights, and enhanced marketing effectiveness—are way too compelling to ignore,” said Arham Khan, founder and CEO of Pixated. “Businesses understand that while AI adoption comes with challenges, the potential for growth and efficiency is significant.”
Wilson echoed these benefits, saying that many small businesses see the resource-saving benefits of AI such as increased productivity and reduced costs.
“While there are concerns,” he said, “the gains—like better data insights and customer service—often make AI worth the investment to stay competitive.”
In Conclusion
The insights shared by industry experts highlight the transformative potential of AI for small businesses.
From streamlining operations to improving customer experiences, AI offers tools that were once out of reach for many smaller enterprises. However, adopting AI also comes with challenges, such as understanding the technology and integrating it effectively.
Whether you’re just starting to explore AI or looking to deepen its role in your operations, the key is to start small, stay informed, and adapt as the technology evolves. Take it from the experts: The future of AI is bright—and there’s plenty of room for small businesses to thrive in it.
