Small businesses are increasingly turning to artificial intelligence (AI) to drive growth and improve efficiency. According to Verizon Business’ sixth annual State of Small Business Survey, conducted by Morning Consult, more than a third of small and medium-sized businesses (SMBs) are actively using AI across multiple functions. The survey found that 38% of SMBs use AI for data analysis, marketing, customer service, and cybersecurity.
Additionally, 56% believe AI can help manage employee headcount and improve retention, while 19% use it for recruitment and talent sourcing. Social media also continues to play a crucial role in SMB marketing strategies. The survey revealed that 76% of SMBs agree that social media positively impacts their business performance.
However, 54% struggle to keep online content fresh and stay current with social media trends. To address these challenges, many SMBs are turning to AI for assistance. The survey found that 28% of SMBs use AI for their marketing and social media efforts, and 24% use the technology to assist with written communications.
Facebook emerged as the most popular social media platform among SMBs, with 82% of respondents using it to promote products and connect with customers. Other popular platforms include Instagram (71%), YouTube (69%), and TikTok (58%). The reliance on social media has increased content needs, with more than 60% of SMB decision-makers beginning to create content or increasing their investment in content creation over the last year.
Small businesses embrace AI solutions
Furthermore, 71% have an in-house department or staff dedicated to creating content for social media. Small businesses across the U.S. are developing innovative AI tools to address their operational challenges.
For example, Anita Ortiz, a real estate investor and realtor in San Antonio, Texas, founded Shift Smart AI, an AI marketing platform designed to help professionals systematize their businesses, streamline operations, and generate consistent leads. Atlanta-based Nectar, co-founded by Derrick Barker, uses AI to streamline the lending process for small commercial real estate ventures. The company’s AI tools allow them to synthesize large amounts of data and documents quickly, reducing the time required to finish an underwriting memo from several days to a couple of hours.
Team-GPT, based in San Francisco, developed a platform using open-source AI tools and proprietary IP to facilitate collaboration between teams in SMBs and large organizations. The tool enhances productivity and team communication by integrating AI capabilities to assist with various tasks and improve overall workflow. While AI can solve many small-business problems, experts advise proceeding with caution.
McKenzie Rudolf, a headhunter for AI talent, recommends starting with open-source AI solutions and being prepared for a trial-and-error experience. She also emphasizes the importance of considering security risks and potential costs before fully committing to new AI technologies. As technology continues to evolve and become more accessible, many SMBs recognize the importance of embracing AI and robust cybersecurity measures to grow and protect their businesses.
The findings from Verizon Business’ survey underscore a significant shift toward digital solutions that enable SMBs to operate more efficiently and compete effectively in today’s market.
Kirstie a technology news reporter at DevX. She reports on emerging technologies and startups waiting to skyrocket.
