Small Businesses Adopting AI Expect to Thrive Against Competitors

That’s the conclusion drawn from new research carried out by GoDaddy, which took in the views of over 500 small business owners in the US. The study found that three quarters of those owners expect Generative AI to give them a competitive edge over other small or similar-sized firms. Over two thirds (68%), of respondents said they feel the new tech will help them compete against larger companies.

GenAI usage among entrepreneurs also appears to be on the rise, with 73% of survey respondents indicating they have tried the technology, and 26% of those using it for business purposes. This is a drastic increase from last year’s investigation, which revealed only 38% of respondents had used GenAI at that time. Of those, only 11% had tried applying GenAI to their business.

Small businesses are also experimenting with how they’re using GenAI tools. Outside of content creation or marketing, entrepreneurs are increasingly leveraging it to help boost sales for their business.

“We’re at the beginning of the AI revolution and small businesses are already taking advantage of the technology, which is really unprecedented,” said Amy Jennette, senior director of marketing at GoDaddy.

“Small businesses usually lag big business in getting the most out of cutting-edge tech, but with easy-to-use GenAI, the playing field is finally levelling out.”

Much has been written about concerns around AI technology, however GoDaddy’s survey found that apprehension is low among small business owners. Only 1 in 10 respondents believed GenAI could do their job better than them. Similarly, 89% said they are not worried about negative consequences associated with using AI technology for their business – a rise from May 2023 (83%).

Looking ahead, entrepreneurs are feeling optimistic about the future, with 47% sharing enthusiasm about their business overall.

“Small business owners expect to save more than $4,000 and 300 hours of work this year using generative AI,” Jennette said. “The best part about this is we’re at the tip of the iceberg when it comes to what’s possible with GenAI,” she continued.

Know the risks

It’s clear that businesses of all sizes stand to make tangible gains when they embrace AI. However, compliance with evolving AI regulations is paramount. In such a climate, organisations must work to implement evolving tech in ways that prioritise good governance, ethics, security, and data privacy at every juncture.

The issues fall into focus this October at #RISK London, where industry leaders debate how companies can navigate AI adoption responsibly, while gaining a significant competitive edge.