The small business landscape is undergoing a profound transformation, driven by the rapid adoption of cutting-edge technologies like artificial intelligence (AI) and automation. According to a recent study by the Connected Commerce Council, a staggering 70% of small and medium-sized business (SMB) leaders have already invested in or plan to invest in AI training and adoption. What this really means is that small businesses are no longer viewing AI as a futuristic luxury, but as a critical tool for driving efficiency, productivity, and growth.
AI Unlocks New Possibilities for SMBs
The data paints a clear picture - AI is not just a buzzword, but a game-changer for small businesses. The latest report from OnDeck and Ocrolus reveals that 56% of SMBs are already using AI tools, with the majority (87%) reporting a positive impact on their operations. From automating repetitive tasks to powering predictive analytics, AI is helping small businesses punch above their weight and compete with larger enterprises.
The bigger picture here is that SMBs are no longer content to be passive observers of the AI revolution. They are actively embracing these technologies to level the playing field and unlock new avenues for growth. As Square's recent launch of an AI assistant for UK SMEs demonstrates, the demand for AI-powered tools that simplify data analysis and decision-making is higher than ever.
Inflation Fuels Increased Marketing Spend
Small businesses are also doubling down on their marketing efforts to combat the challenges posed by inflation. According to a report from Constant Contact, 68% of SMBs expect to increase their marketing budgets in 2026, despite inflation being the top concern for 41% of owners. The rationale is clear - entrepreneurs view marketing not as a discretionary expense, but as a strategic lever for survival and growth.
By leveraging AI-powered tools for content creation, social media optimization, and data-driven decision-making, small businesses are finding ways to maximize the impact of every marketing dollar and hour spent. The rapid rise of restaurant tech startups in the AI era is a prime example of how SMBs are using technology to gain a competitive edge.
The small business landscape is undoubtedly in the midst of a transformative shift, with AI and automation emerging as key drivers of innovation and growth. As tech funding continues to pour in, the stage is set for small businesses to harness these powerful tools and thrive in the years ahead.