Small- to medium-sized businesses (SMBs) face a unique set of challenges.
These challenges, as sprawling as they are complex, are commonly ill-suited to be met by one-size-fits-all tools and generic solutions. Rather, they require dynamic and agile innovations — innovations like artificial intelligence (AI).
And with the news Thursday (Sept. 19) that Amazon has introduced a new generative AI (GenAI) initiative aimed at helping sellers streamline business operations and scale their businesses, tapping AI to enhance operational efficiency, improve customer experiences and drive growth is becoming key for SMBs.
That Amazon news is just one of many data points, from this month alone, when it comes to the opportunities AI holds for SMBs.
Elsewhere, Gusto announced Sept. 11 that it will soon add an AI-powered assistant called Gus to the human resources (HR), payroll, benefits and compliance platform and products it offers for small business owners; while Google on Sept. 12 introduced a pair of initiatives to help small businesses integrate AI into their operations.
Although AI is often associated with large enterprises, its impact on SMBs is becoming more profound, enabling these businesses to scale and compete in ways previously unimaginable.
Read more: Small Business Transformations Put the AI in Main Street
For many SMBs, operational inefficiencies are a constant struggle. Manual processes, resource constraints and disorganized systems often result in lost time and revenue. AI, however, is changing that narrative. Through automation and intelligent data analysis, AI can significantly reduce the administrative burden, allowing small business owners to focus on strategy and growth.
“AI can help integrate data from across spreadsheets, PDFs and business units, unlocking insights that can improve operations and progress toward business goals,” IBM’s Head of Sustainability Software Christina Shim told PYMNTS in an interview.
Recent research by PYMNTS Intelligence shows that 96% of SMBs that have used AI tools — though not necessarily GenAI — view it as an effective way to streamline tasks.
One of the most impactful areas of AI adoption is automated administrative tasks. For example, AI-powered tools like chatbots, virtual assistants and automated scheduling software can manage customer inquiries, appointment bookings and routine communications, freeing up valuable human resources for more strategic tasks.
Separately, AI tools that leverage natural language processing (NLP) can assist in drafting emails, documents and reports, reducing the need for manual input and allowing businesses to operate more efficiently.
Andre Machicao, senior vice president at Visa Acceptance Solutions, and Josh Scheer, president and owner of White Lotus Travel Design, told PYMNTS over the summer that SMBs can use AI to create marketing plans and product descriptions in minutes without a big marketing team to do it. The tech can also help streamline back-end operations so that scheduling, reminding a customer of upcoming payment deadlines and keeping on top of trends and news become automatic.
Read more: SMBs Race to Critical Mass on AI Usage
While AI tools are still fairly new, their future possibilities and applications are nearly endless — with most firms only scratching the surface of AI’s potential impact across their operations.
Findings revealed in “Innovators and Cost Cutters: Growth Strategies for SMBs,” a PYMNTS Intelligence report, show that while 37% of SMBs on average use AI, 51% of those with increasing revenues use it. Businesses with increasing revenues, and those generating more than $1 million in revenue, are twice as likely to use AI as ones with decreasing or stable revenues.
Still, many SMBs remain hesitant to embrace AI, often due to concerns over cost, complexity and implementation.
Against this backdrop, platforms that offer AI-as-a-Service are also gaining traction, allowing SMBs to access advanced AI capabilities — such as machine learning algorithms, predictive analytics and automation — on a subscription basis. This democratization of AI technology enables small businesses to compete on a level playing field with larger enterprises that have more extensive resources.
Ultimately, by leveraging AI to streamline operations, enhance customer experiences and drive growth, small businesses can position themselves as competitive players in their respective markets. And as the adoption of AI becomes more widespread, it is becoming more and more clear that the technology will be a game-changer for SMBs, empowering them to not only survive but also excel in an increasingly complex business environment.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More