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Is AI Coming for Small Businesses? How Small Businesses Are Approaching AI Integration

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Small business leaders, like most business leaders, seem to accept that integrating AI into their business operations is no longer optional. A recent survey by the U.S. Chamber of Commerce found that the number of small businesses using generative AI in their operations grew from only 23% in 2023 to 58% in 2025. Small businesses participating in the survey reported that using AI helped them “get access to capital, handle supply chain issues, and cope with inflation.”

Yet the report also revealed that a number of barriers to AI implementation still exist among small businesses. One-third of small businesses said they were concerned about the quality of the AI-driven tools available to them, while slightly fewer than a third were concerned about the costs. Other top issues reportedly keeping small businesses from bringing AI on board include concerns about compliance and a lack of knowledge as to how it could help them achieve their business goals.

The following tips are for small business leaders who haven’t yet overcome the barriers to AI integration, but who feel compelled to move forward. They can help you leverage the power of AI without letting it destabilize your operations.

Let AI do what it does best

To get the most bang for your AI buck, small businesses should start by integrating the technology in areas where it shines. You may have seen marketing that promotes AI as a tool that can solve any problem you have, from automatically managing all of your recruiting to mapping out your sales strategy for the next five years. The reality, however, is that AI still hasn’t figured some stuff out.

For example, AI struggles to notice the type of subtext that can provide valuable information in the hiring process. It can rapidly and accurately determine that the right answer was given, but it can’t read if the answer was given in the right way.

And when it comes to strategizing, AI’s output won’t include the instinctual information that often makes all the difference in the business world. If you’re the type of leader who needs to feel it, you’ll most likely be frustrated by the data-driven direction AI is limited to providing.

Data analytics, however, is something AI can deliver ‌far beyond the capacity, speed, and accuracy of human workers. By leveraging AI to help you better understand what your data says about your business, you can uncover insights that allow you to increase efficiency and productivity.

Most companies don’t have a problem identifying high-value customers. A simple sorting of sales data can show that. But what about customers who have the potential to be high-value but haven’t yet begun spending? Unleashing AI on customer data can help identify those customers.

For example, AI might determine a particular usage pattern on your website that marks high-value customers, then identify other consumers who have exhibited the early stages of that activity. By focusing on those customers, companies can make their marketing efforts more efficient.

If that sounds overwhelming, start small. Let AI manage your email inbox, organizing your messages so that the messages that need the most urgent attention come to the top. Your email program probably already has this capability, along with tools for automatically drafting replies and for letting you know when you need to follow up.

The beauty of generative AI tools like ChatGPT is that users can provide data and ask the AI to find insights with simple language prompts. For example, small business owners can cut and paste their most recent user reviews into ChatGPT and ask it to find new things people have praised or complained about.

By asking generative AI a question like, “What specific complaint has the biggest impact on ratings?” small businesses can identify the element: customer service, shipping time, price, etc., that has the biggest impact on customer satisfaction.

One warning for those experimenting with using a publicly available AI tool like ChatGPT or Gemini for data analytics: Avoid sharing private data with a public platform. Sharing publicly available info like Google ratings is fine, but if you put private customer records into generative AI, they could become part of the platform’s training and, ultimately, output.

Use AI to empower—not replace—employees

As AI began to make inroads in the business world a few years back, it was said that it would make companies more efficient by replacing employees. But that doesn’t need to be the approach. In fact, the U.S. Chamber of Commerce report says 82% of small businesses using AI have increased their workforce over the past year.

Rather than replacing employees, small businesses should consider using AI to empower them. Give employees AI-powered tools that can handle their busywork, and you amplify their performance.

There are a wide variety of ways AI can be used to improve the performance of a sales team, for example. It can triage customer calls to ensure concerns reach the right extension. When an employee gets on the phone with a customer, AI can quickly dig up and serve up all the information relevant to the call. And after the call, AI can analyze the transcription to identify any concerns that might have been missed and suggest how future calls could be handled better.

The overall goal should be to leverage AI to give employees the time and energy they need for next-level thinking. When deployed in that way, AI not only serves as an efficiency tool but also as an employee retention tool, which can be extremely valuable in today’s tight and competitive job market.

Statistics clearly show that small businesses are using AI and gaining from it. But that doesn’t mean small businesses that are behind the curve should dive in just to keep pace with the culture. Developing a deeper understanding of what AI is capable of and how it can support your work will allow you to use it optimally to amplify your strengths and get a solid return on your investment.

Brian Aagaard, Founder of Cooperhawk Business Brokers, is a seasoned professional with decades of experience across both corporate and privately held companies. After a long and successful career in the corporate and private sectors and having spent the last 10 years with one of Minnesota’s leading business brokerages, Brian launched Cooperhawk to bring a personal, relationship-driven approach to business brokerage—one that prioritizes integrity, transparency, and the success of Main Street business owners.

While its foundation is rooted in Main Street businesses, Cooperhawk also has the expertise to guide more complex transactions, reflecting a forward-looking vision for sustainable growth in the evolving business marketplace.

Photo courtesy Philip Oroni for Unsplash+

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