Small Businesses Want to Use AI but Don’t Know How
By Movieguide® Contributor
Small businesses want to integrate artificial intelligence into their daily operations, but they don’t know where to begin.
A new study by Morning Consult “found that just 52% of U.S. small businesses have adopted AI in their operations, while about half of non-adopters are planning to follow suit within the next two years,” FOX Business reported Wednesday. “Of those that have implemented AI, 85% say their use of AI has increased compared to a year ago.”
However, 90% of small businesses encounter issues when they try to implement AI tools. Nearly half (47%) of respondents said “learning” how to use AI was an issue, 36% cited “navigating options,” 34% said they don’t know where to look or how to start, 31% cited issues “ensuring compatibility” and 26% shared concerns about “privacy and security.”
“There is a recognition that AI and the advancement of technology is important in small business,” Denise Press, Visa’s head of small business for North America, told FOX. “There was an equal weight of, ‘I don’t know how to get started’ and not knowing how to get started and not being experts in AI and/or new technology.”
Press suggests that small businesses first try “lower risk areas” like automatic chat support and then turn to business partners who already use AI to gain suggestions and insights.
“She said a small business could leverage AI to do things like drafting a press release, given that ‘not many small businesses have a writer or a comms and PR department,’” FOX Business reported. “She added that they could then ensure the generative AI output is in a voice that represents that small business and refine it as needed, rather than having to write it from scratch.”
For those who haven’t integrated AI, the idea of using it for marketing had the most pull, with 49% of respondents showing interest in it rather than business development, customer service or other areas.
“Look for key partners and vendors in that small business’ industry,” Press said. “There are vendors that specialize in working with a variety of industries, and those vendors, who are often larger organizations like Visa, are already looking to incorporate AI and going to those vendors to say, ‘What are you doing with AI? How does that impact my business? How can it help?'”
“I think the message is: start small. Look for partners that have good, solid thought leadership that can be trusted. Look to vendors who are already starting to get into AI in ways that can really impact the business,” Press said.
Out of the small businesses that use AI, only 53% report that it’s helpful and time-saving.
“The study also found broad optimism about AI from all small businesses, including those that haven’t yet adopted the emerging technology, and that it will help their businesses, with 65% expressing optimism it will positively impact their business,” FOX Business said.
A 2023 Small Business and Entrepreneurship Council report said, “93% of small business owners agree that AI tools offer cost-effective solutions that drive savings and improve profitability.”
Forbes adds that AI saves small businesses “hundreds and billions of dollars” every year.
While most haven’t cited legal changes as a concern with AI, that could be on the board, too.
Bipartisan Policy notes that as AI continues to grow and become commonplace, “Legislators will need to consider how existing laws currently regulate AI as they chart a course for future governance frameworks, all while supporting innovation.”
Several AI bills were introduced last year, all of which could positively affect the small businesses AI outlook:
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The Jobs of the Future Act of 2023 authorizes a study to identify infrastructure needs and necessary skills to prepare the workforce for AI.
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The Small Business Broadband and Emerging Information Technology Enhancement Act of 2023 would provide SBA employees with the training they need to assist small business owners with AI adoption and authorize small business development centers to help businesses access and use AI. help businesses access and use AI.
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The Small Business Technological Development Act would allow small business owners to apply 7(a) loan funds to finance digital tools and technology, like AI systems, that support their daily operations.
Movieguide® recently reported on the rise of AI use among adults:
Despite limited enthusiasm for the tech a few years ago, Barna Group and Gloo found that “31 percent of U.S. adults say they use AI weekly or daily. Millennials have become especially frequent adopters, with 43 percent of them using AI at least weekly.”
Young adults are more likely to use AI compared to older adults.
Per Barna, “Millennials and Gen Z use AI most frequently in their personal lives, with over half (54%) of both groups using the technology ‘often’ or ‘sometimes.’ Meanwhile, older generations are far less likely to embrace AI (82% of Boomers and 91% of Elders say they use AI ‘not very much’ or ‘not at all’).”
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