How AI Can Power Your Small Business
Post sponsored by Cox Business
When artificial intelligence (AI) solutions started spreading across American businesses, the nation’s larger companies were the first to adopt them. That’s not surprising. Small and mid-sized businesses (SMBs) hesitated for a variety of reasons. Primarily, they lacked the proper resources, including the budgets to buy what they perceived to be expensive solutions. They also didn't have access to technological expertise, outsourced or in-house, to integrate AI with their existing tech systems and implement any new products/services.
They also lacked knowledge of the benefits AI solutions could actually deliver and were concerned AI was too complex and time-consuming for them—or their employees to understand.
Fear was a factor, too. Many workers are terrified they’ll lose their jobs to hordes of robots. And, as much as entrepreneurs are presumed to be risk takers, once their companies are up and growing and there’s something to lose, they become more risk-averse. Some entrepreneurs fear introducing a new “unproven” technology like AI could disrupt their current successful processes and workflows.
AI gains a foothold
Luckily, as AI gained a bigger foothold among the nation’s SMBs, many of those concerns and fears were allayed. Recent research from Cox Business, the 2024 Small Business Survey, reveals how much the sentiment around AI has shifted from fear to acceptance among both small business owners and employees.
Let’s look at how AI makes a difference for small businesses today.
Customer experience
Turns out AI is the “secret ingredient” that makes customers happy. The Cox Business survey shows that 53% of small business owners say AI positively impacted customer experience last year and intend to employ AI solutions to “support customer service/experience.” Here’s how:
- Online order product/service recommendations—36%
- Online order placement—35%
- Website live chatbot—35%
- Customer service calls—33%
Small businesses continue to deploy AI
Customer service is not the only area where small business owners intend to use AI this year. The Cox Business survey shows they plan to increase their AI usage in several departments:
- Customer service—41% plan to use AI, up from 34% that used it in 2023
- Marketing—44% intend to use AI, up from 39% that used it in 2023
- Sales—39% expect to use AI, up from 30% in 2023
Investment
Small businesses have realized that to get the most out of AI, they must invest in it. The Cox Business 2024 Small Business Survey shows that 67% of business owners invested in AI in 2023, and 53% expect to invest even more this year.
Younger business owners are the most active investors in AI technology—84% invested last year, and 74% plan to spend more in 2024.
Employees
Instead of fearing AI, small business owners and employees have embraced it. According to the survey, both parties say they “have a good grasp” of it:
- 86% of business owners say they understand AI
- 85% of business owners are comfortable using AI tools
- 72% of employees say they understand AI
- 75% of employees are comfortable using AI tools
Employees no longer fear being replaced by bots. In fact, the survey indicates that both business owners (52%) and employees (65%) now view AI as a helpful tool for businesses to attract and retain employees.
The one caveat—training. Previously, 62% of businesses had already given their employees AI training, but 76% don’t plan to offer AI training courses this year. This is surprising, especially in light of a World Economic Forum survey showing that 57% of employees want their companies to provide the AI training they need to acquire the proper skills. And without investing in their team’s ongoing education of new technology, owners may risk falling behind the latest technology advancements.
Rising expectations
With the increased investment comes rising expectations. This year, 41% of small business owners expect AI to increase their productivity and profitability, and 33% think AI will improve the customer experience at their businesses.
The challenge of AI for small business: Implementation
That is not to say there aren’t still challenges for small businesses using AI. Implementing AI solutions takes time and, in many cases, can increase the workload of both the business owner and the employees.
Most small businesses don’t have IT personnel or departments. The Cox Business 2024 Small Business Survey reveals that 75% of small business owners say they’re in charge of AI implementation and operations. As business owners, you know that with everything else on your plate, that’s just not a tenable situation. Something has to give.
Tight labor market
Most businesses report last year’s tight labor market for IT personnel didn’t negatively affect their companies. But 42% of small business owners experienced a very negative impact—declining revenues.
The lack of IT staff affected the employees at those small businesses as well:
- 43% took on more job responsibilities
- 40% experienced increased stress in the workplace
- 38% had to work longer hours
Getting help
So, when considering AI in the small business workspace, we’ve come a long way in a short time. And that can easily overwhelm a small business, especially with new AI innovations emerging every day.
If you can’t find or can’t afford to hire IT staff specializing in AI, don’t give up. While AI isn’t the be-all, end-all solution for small business challenges, the right strategy, connectivity, and supplementary technology stack can drive greater efficiency.
Implementing AI at your small business
One of the solutions, then, is to devise the right AI implementation strategy.
First, you need the proper infrastructure. Do you have the Wi-Fi connectivity needed to power these robust solutions? Wonky internet connections cost you time, money, and lost productivity. You must have a fast, reliable network loaded with rich features, like the one offered by Cox Business.
Another key is training. That’s why the reduction in the number of businesses that plan to offer AI, as noted in the Cox Business survey, is so concerning. To take full advantage of powerful AI solutions, you need to provide AI training to your staff via online courses, tutorials, workshops, webinars, or other methods.
Finally, consider AI and generative AI partnerships with a company that can help you assess business challenges, map out your data strategy, and then install and manage the AI solutions, like RapidScale, a Cox Business company. Jeff Breaux, EVP at Cox Business, says, “The data scientists and AI experts at RapidScale can make generative AI accessible, guiding businesses to the right deployments delivering certainty and value with your desired business outcome.” These partnerships free up your time to focus on more core business revenue-generating activities and reduce the burden on your already overworked staff.
Of course, monitoring and evaluating your chosen AI solutions is critical to ensure they deliver the benefits you need.
As the Cox Business 2024 Small Business Survey shows, small businesses are now open to harnessing the power of AI to improve efficiency and productivity, drive innovation, and gain a competitive edge.
If you need help implementing AI solutions to boost your small business’s growth, don’t hesitate to contact the teams at Cox Business and RapidScale.
About the Author
Rieva Lesonsky is the owner of SmallBusinessCurrents.com and has been covering small businesses and entrepreneurship for over 30 years. Get more insights about business trends by signing up for her free Currents newsletter.
