Artificial intelligence is increasingly being adopted by businesses of all sizes to streamline processes and improve efficiency. The technology can be especially impactful on small businesses by helping them expand the impact of limited staff or resources. Strategically implementing AI can allow a smaller company to grow, compete with larger companies, automate certain tasks and improve customer service!
Many businesses are already catching on and implementing AI into their operations. A U.S. Chamber report found that 58% of small businesses say they use generative AI, an 18% increase from 2024. The same report addressed concerns that AI is replacing employees, with data showing that 82% of small businesses using AI have increased their workforce over the past year. When businesses use the technology to support and expand on human work rather than replace it, employees can focus on priorities and leave the routine tasks to AI.
With so many products and tools available, it can be difficult to decide how to implement AI into a small business. It is important to test free or lower cost services to determine if they help save time or provide value before committing to more expensive products. Even simple and free AI tools can summarize meetings, brainstorm marketing ideas, format documents and more.
Although AI is often helpful, it can still make mistakes and human oversight is essential. Businesses should review any AI generated work before sharing it with clients and customers. It is also important to avoid inputting sensitive data and to be aware of the risk of false information. When AI is used for marketing materials, it’s important to review content to ensure it aligns with the business’s culture and branding. Learn more about the benefits and risks of using AI from the U.S. Small Business Administration.
As AI continues to evolve, small businesses should stay informed on changing laws. Nationally, businesses of all sizes face similar struggles as states attempt to regulate the growing use of artificial intelligence. Small businesses are increasingly using AI to scale up, and 65% are worried about a patchwork of state AI laws. When asked how they would manage compliance with Colorado’s regulations, one-third of small business owners stated they would scale down AI use.
Supporting balanced policies that provide necessary safeguards while allowing innovation is critical to ensuring businesses can remain competitive and benefit from AI. Small businesses can play an active role by joining organizations like the Colorado Chamber to stay informed and shape policy discussions.