Small businesses should be a much bigger part of the 'AI transformation' conversation

"So much of the conversation around the great AI transformation of business has centered on enterprises, meaning companies with more than 500 employees. That makes sense: For AI and cloud companies, landing a large enterprise customer can mean securing a significant stream of recurring revenue. But if we're really talking about AI reinventing work and making everyone more productive, small and medium-sized businesses should be a much bigger part of the conversation."

"According to the Small Business Administration, around 36 million small businesses operate in the U.S., employing 46% of private-sector workers. Most of those companies are very small. Federal data shows that about 88% have fewer than 20 employees."

"A recent Goldman Sachs study of 10,000 small businesses found that three-quarters are now using AI, with 84% citing productivity and efficiency gains. Still, only 14% said they had integrated AI into their core operations. Another study, from the National Federation of Independent Business (NFIB), found that only a quarter of small businesses reported using AI tools at all."

"Many small business owners are probably aware of the growing ecosystem of AI products designed for smaller operations. Intuit, Zapier, HubSpot, Lindy, and Microsoft all compete in this space."

Small businesses are central to AI’s promise of improving productivity, yet much attention has focused on large enterprises. The U.S. has about 36 million small businesses employing 46% of private-sector workers, and most are very small, with 88% having fewer than 20 employees. Earlier research suggested limited adoption, but newer surveys show mixed results. A Goldman Sachs study of 10,000 small businesses found three-quarters using AI, with 84% citing productivity and efficiency gains, while only 14% integrated AI into core operations. An NFIB survey found only about a quarter using AI tools. Many AI products target smaller operations, with companies offering tools for business workflows and customer-facing functions.

Read at Fast Company