AI Applications for Small Business: How AI Is Changing the Workplace
In my article 2025 AI Predictions for Small Businesses, we discussed how artificial intelligence (AI) is no longer just for tech giants—it’s transforming small businesses in ways we couldn’t have imagined just a few years ago. AI is helping small businesses streamline operations, enhance customer experiences, and make smarter decisions. It’s also playing an increasingly significant role in the recruiting and hiring process.
To learn more, I asked several industry leaders and experts for their insight into how to create more efficient, innovative, and competitive workplaces.
Small Businesses Embrace AI Applications
Verizon’s fifth annual State of Small Business Survey highlights a remarkable shift in AI usage among SMBs. Since 2023, AI adoption has more than doubled, and today nearly 39% of SMBs reportedly leverage AI technologies for their businesses.
A combination of factors drives this rapid uptake. First, there is increased awareness of AI’s potential to automate repetitive tasks, reduce operational bottlenecks, and free up valuable time for strategic initiatives. Second, SMBs now embrace AI-driven solutions to enhance customer interactions—whether through personalized marketing, AI-powered chatbots, or real-time customer support tools. Finally, AI’s ability to analyze vast amounts of data quickly and deliver actionable insights empowers SMBs to make smarter, data-driven decisions.
The momentum around AI adoption shows no signs of slowing down. As AI tools become more accessible and tailored to SMB needs, more businesses are expected to incorporate these technologies into their day-to-day workflows. This trend underscores a broader shift toward innovation as SMBs recognize that AI isn’t just for large businesses—it’s a vital tool for SMBs to stay competitive in today’s changing marketplace.
—Aparna Khurjekar, Chief Revenue Officer, Business Markets & SaaS, Verizon Business
Generative AI Eases the Hiring Process
A recent report from Gusto, Small Businesses Using Generative AI Report Hiring Success and More Satisfaction With Their Employees, revealed that:
Businesses that use generative AI had an easier time hiring: Among businesses that were hiring, the ones using gen AI were 45% more likely to report they could fill open roles and experienced fewer hiring difficulties.
Employees at businesses that use gen AI are much more likely to exceed expectations: Generative AI helps reduce workloads, particularly for repetitive tasks, allowing employees to focus on more impactful business-building activities.
Younger generations of business owners are more comfortable with rapidly changing technologies, highlighting a generational shift in how businesses incorporate AI: Millennial and Gen Z business owners are 56% more likely to utilize gen AI in their operations than Gen X entrepreneurs, and 76% more likely than boomer business owners.
—Nicholas Tremper, Gusto Economist, Gusto
AI Is Revolutionizing Recruitment, Retention, and Development
Imagine an HR department where hiring decisions are data-driven, retention is second nature, and employee development is personalized and engaging. This isn’t a distant dream—it’s the reality that AI is bringing to HR organizations today. AI transforms HR by automating tasks, enhancing communication, and providing support. Machine learning and predictive analytics can empower HR by delivering insights that help anticipate employee behaviors, such as turnover risk, supporting data-driven strategies to improve retention, streamlining the hiring process, and creating personalized employee experiences.
Generative AI, a game-changer for HR, automates content creation, improves question answering, and summarizes text and content. HR professionals can leverage generative AI tools to create job descriptions, employee communications, and training materials more efficiently, saving significant time.
When implementing AI in HR, businesses should weigh the value against the feasibility of AI applications, prioritizing those with the highest potential. This value-feasibility analysis ensures that AI adoption yields measurable gains without undue disruption.
Balancing the benefits and risks of generative AI and adhering to responsible AI practices is essential. This involves ensuring that AI systems are transparent, accountable, and fair. Businesses must implement measures to identify and reduce bias that could lead to unfair treatment of employees. Regular audits and updates of AI systems help maintain their ethical use and reliability.
—Rebekah Roberts, Learning and Development Program Manager, University of Phoenix
A Call for Clarity
In 2024, we saw a lot of hype, with the term "AI" applied to tools and technologies that are, in fact, simply rule-based automation or traditional data analytics. Labeling these as AI not only misleads stakeholders, but also risks setting unrealistic expectations for what AI can achieve in hiring. True AI systems, especially those based on machine learning, involve adaptive learning from data and require transparency to build trust and ensure ethical use. I’d love to see a shift toward clarity and accuracy in the language we use around AI.
—Dr. Lindsey Zuloaga, Chief Data Scientist, HireVue
AI Will Not Replace Coding Jobs
Artificial intelligence promises a bright future, an exciting prospect that also carries fears of technology replacing humans and eliminating jobs. While this future is further ahead than many claim, two facts remain true: AI and its fast growth present more opportunities than dangers, and we must continue to teach the next generation how to code so they can take advantage of the freedom of creativity that AI provides.
AI won’t replace humans: Generative AI uses large-language models (LLMs). Generative AI can create base code with a simple prompt, but it still needs a software engineer or programmer to check that code, understand what needs to be modified, and then apply it to the proper context and use in a program. AI frees the programmer from debugging and allows us to focus on creativity. It lets us reinvent a better wheel—one that more people can access and benefit from. AI provides the starting point, but you are ultimately responsible for the final product. You use your critical thinking skills and creativity to apply the generated results in the way you want and need.
Coding will continue to be a sought-after skill: Instead of going through hours of courses to learn base codes, the next generation of workers faces lower barriers to learning how to use code. Coding is one of the best mediums for combining problem-solving and technology. Teaching our children to code ensures they master these critical skills to become successful workers by being creative, modifying, and problem-solving. And thanks to AI, they won’t have to spend hours starting from scratch.
Coding jobs will evolve as AI improves: Not all coding jobs will be eliminated; they will evolve. Programming positions today require many hours to learn and master coding languages, but this requirement will disappear as AI continues to improve.
Learning to code will continue to be critical, but the knowledge and training a programmer needs will shift to leveraging tools and AI-built programs. For every disruptive tool or invention, there are new jobs to improve and maintain such creations. To fully leverage AI’s benefits, we must continue teaching our children invaluable coding skills. Embrace AI and let us inspire the next generation to innovate and create like never before.
—Ed Kim, VP Education and Training, Code Ninjas
AI Is Transforming Workplaces by Reconfiguring Them
Companies must fundamentally reimagine and reconfigure workspaces for employees returning to work in the office to provide seamless and immersive collaboration experiences. Designing reimagined spaces requires careful consideration of technology and real estate and reviews from various stakeholders in IT, facilities, and even HR. In 2025, designing and deploying collaborative workspaces will be significantly streamlined.
Leaders will leverage AI to provide customized recommendations for room layouts, audio coverage, and screen visibility based on the company’s specific needs. As a result, businesses can quickly and cost-effectively create optimized collaboration environments, accelerating workplace transformation and enhancing employee productivity.
AI will also augment employee productivity by integrating into meeting room devices. By combining collaboration device technology with AI, employees will soon benefit from AI-generated “catch-me-up” summaries, writing assistance, action items, and more during in-person meetings.
—Snorre Kjesbu, Senior Vice President and General Manager of Collaboration Devices, Cisco
