Small businesses in America are increasingly incorporating AI into their operations and decision-making processes.

• A recent survey of small businesses found that one third are experimenting with gen AI and a quarter are already experiencing its benefits.
• Small businesses that use gen AI technology are 45% more likely to fill open roles than those that do not.
• Business owners claim that AI is increasingly important for their role as "chief everything officer," including leadership and financial growth objectives.

While it's well-known that big corporations are leveraging generative AI to gain a competitive edge, small businesses are also discovering ways to benefit from this technology.

Despite the fact that 43% of small businesses have never considered using gen AI in their operations, according to a survey of 1,300 respondents from small business software company Gusto, nearly a third are experimenting with it, and a quarter have already seen the benefits.

According to senior economist Nicholas Tremper at Gusto, the primary advantage of small businesses utilizing gen AI is their ability to remain competitive in the talent acquisition race.

""Small businesses report ongoing challenges in recruiting employees who want to utilize their skills efficiently in a business setting," Tremper stated."

Gen AI-equipped small businesses are 45% more likely to fill open roles because allowing workers to focus on their desired skills while AI handles excess makes workplaces more attractive, as reported by Gusto.

The industries most affected by labor shortages in the US are education, healthcare, hospitality, and professional services, which encompass a wide range of businesses such as legal services, landscaping, cleaning, and waste disposal. Gusto has discovered that these same industries can benefit greatly from gen AI. "These businesses are crucial to the local economy and culture," he stated.

Ric Nelson, the founder and executive director of Peer Power, a non-profit disability advocacy organization in Anchorage, Alaska, has cerebral palsy, a severe disability he contracted during an accident shortly after his birth. Despite being told he wouldn't survive, he has achieved many accomplishments, including earning three degrees and running his own small business.

Nelson stated that AI helps him communicate more effectively and quickly by typing his information into articles and presentations.

Nelson, who previously had to provide short and incomplete responses due to his disability, now uses gen AI to "share the full breadth of my ideas and vision" by proofreading his work, helping him submit complex grant proposals, and even writing a book.

"According to Nelson, a small business with a clear vision and strategy can effectively communicate like a large corporation. This also creates opportunities for individuals with disabilities to launch successful businesses, thereby reducing their dependence on public assistance and increasing their financial independence."

Nelson now has an AI "double" of himself created on Delphi. By uploading 422,000 documents into a database, people who work with him or receive consulting from him can converse with the double about his opinions, ideas, and even his own experiences in life and business. Additionally, Nelson will now have an audible voice that people can comprehend at a normal pace, without the need for a voice-over or interpreter.

Todd Miller, president of Ohio-based Isaiah Industries, which specializes in manufacturing residential metal roofing and has approximately 50 employees, stated that in addition to utilizing gen AI for content creation, website copywriting, and podcast ideation and scriptwriting, his company recently employed the technology to create a training video for contractors selling its products. "We initially planned to film the video, but then decided that AI would save us time, allowing us to deliver the training to our customers more quickly," he said.

In 2024, Limitless Fitness, a New Hampshire gym with over 10 trainers and 150 active one-on-one clients, was acquired by Bennett Camarda and her husband, Bill. "Our goal is to use AI to enhance our growth and streamline our operations while keeping our clients at the forefront," said Camarda.

Camarda stated that they have utilized ChatGPT Premium to create Excel formulas, which has significantly reduced the time spent on contract operations from hours to minutes. Additionally, they have used ChatGPT Premium to refine their brand strategy, tone, voice, and messaging to better connect with their evolving client base, ranging from strength training for grandparents to optimizing performance for golfers. Furthermore, ChatGPT Premium has been used for writing operations manuals and creating heatmaps to track their busiest times, allowing them to add more training sessions where they are most needed.

Although taking over a new business comes with a steep learning curve, Camarda has managed to almost close the -5% year-over-year revenue gap left by the previous owners, and has also increased trainer and client engagement to unprecedented levels.

"By utilizing gen AI, we have been able to devote more time to our community and the establishment of a second location, rather than being bogged down by the operational details," she stated.

Small businesses that use AI are more likely to grow and expand, as evidenced by a recent American Express survey, with 50% of AI adopters planning to increase their workforce in 2025, compared to 36% of non-AI users.

"Tremper stated that small business owners are the "chief everything officer" and are responsible for hiring their early employees to help build the business. These employees often wear multiple hats, just like the business owner. Gen AI can help alleviate some of the workload from both the business owner and employees by taking off hats and increasing their productivity."

Small business owners are proceeding with caution when it comes to implementing gen AI technology, as they are aware of the potential risks such as data security and hallucinations.