The U.S. Chamber of Commerce Technology Engagement Center (C_TEC) recently released the latest edition of the "Empowering Small Business: The Impact of Technology on U.S. Small Business" report. Now in its third year, the nationwide survey and analysis of small businesses — conducted in partnership with Teneo — uncovers the impact and trends of technology.
The 2024 report focused largely on the technology that has taken the world by storm: artificial intelligence (AI). Here are some of the key findings from the report.
AI usage continues to increase among small businesses
The use of technology by small businesses is nearly universal, with 99% of respondents leveraging at least one technology platform. Although there isn't a single type of technology platform that dominates the others, the incorporation of AI by small businesses has drastically increased. In 2023, 23% of small businesses reported using generative AI tools like ChatGPT, Zendesk, and Hubspot, and the 2024 report saw a 17% increase in this category.
Since AI has been integrated into so many common tech solutions — including financial management, mapping, and content creation tools — it's not surprising that 98% of small businesses reported using tools that are AI-enabled in some way. The majority of small businesses (86%) have been using AI for two years or less, while 55% only started using AI within the last year.
[Read more: AI for Small Business 101: How to Get Started]
Small businesses are optimistic about future growth
With AI in their back pockets, most small business owners have created a better relationship with their work. In 2024, 86% of small businesses said AI has helped their business operations become more efficient. It's no surprise then that 89% of owners say they enjoy running their businesses more because of the help that AI has provided — an 11% increase compared to 2023.
Because of AI's ability to help small businesses operate more efficiently, the growth potential of small businesses is bright. The report showed that 91% of small businesses currently using AI are optimistic that AI will help grow their brands in the future. With AI's growing presence, 77% of small business owners said they plan to adopt more emerging technologies like AI and the metaverse.
In 2024, 86% of small businesses said AI has helped their business operations become more efficient.
Regulatory issues could pose challenges in AI implementation
Although the benefits of AI have positively impacted how owners run their small businesses, concerns continue to linger regarding technology regulations. Some states are considering implementing regulations on the use of AI, including requiring businesses to disclose to their customers when AI is used and the potential effect on customer interactions. Other possible regulations include implementing risk assessments of AI tools and human oversight for AI systems that make customer decisions.
The proposed technology regulations had 54% of small business owners feeling worried about the negative impact these laws could have on their businesses in 2023. In 2024, this number did not change. In fact, 86% of small business owners reported that complying with regulations would pose challenges, including the following:
- Staying informed of new compliance regulations.
- Increased legal and compliance costs.
- AI disclosures that would scare customers away.
- Regulations limiting the ability to use AI tools.
- Uncertainty whether regulations apply to specific businesses.
- Limited knowledge of how to implement AI disclosures.
Less than one in three small businesses reported feeling well-prepared to comply with pending AI regulations.
[Read more: Small Business Influencer Karen Kerrigan on: Balancing AI With Human Staff to Grow Your Business]
AI has helped with inflation management
Widespread inflation is the biggest challenge small businesses contend with today. Thankfully, 79% of small business owners reported that technology has helped them avoid increasing the price of their goods and services to customers. Technology platforms — especially those that help business owners search for better prices — have helped 79% of small businesses handle supply chain difficulties.
Overall, despite potential regulatory concerns, AI technology has helped small businesses remain competitive and thrive in an economy that is currently challenged by inflation, workforce, and supply chain issues.
Access the full U.S. Chamber of Commerce Technology Engagement Center report.
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