How AI Is Transforming Small Business

Jordan Crenshaw
Senior Vice President, C_TEC, U.S. Chamber of Commerce

Published

December 02, 2024

Running a small business means taking on various roles every day. From visionary to accountant, marketer to customer service representative, small businesses must master multiple roles to succeed. This message was heard loud and clear at a recent event hosted by the Denver Metro Chamber of Commerce and the U.S. Chamber that featured Governor Polis, Attorney General Weiser, members of the Colorado legislature, and small business owners.

Artificial intelligence is emerging as a powerful resource for these business owners. According to a recent report from the U.S. Chamber of Commerce's Technology Engagement Center (C_TEC), 42% of Colorado small businesses are utilizing generative AI to level the playing field with larger competitors.

a man standing in front of a podium with a microphone — Colorado Governor Jared Polis spoke at the event.

The impact of this technological transformation is particularly evident in Colorado’s vibrant small business community, which is discovering innovative ways to harness AI's potential.

Multiplying the Power of Small Teams

Drick Bernstine, CEO of BE A GOOD PERSON, a lifestyle apparel company that collaborates with major brands like lululemon and sports franchises such as the Colorado Rockies and Denver Broncos, has found AI transformative for his lean team. As his business grows and takes on partnerships with larger entities, AI-enabled tools on platforms like Shopify and QuickBooks help maintain productivity without expanding headcount.

Similar efficiencies have been discovered by Adam Baker, whose company SodaPup manufactures American-made dog toys and pet supplies. Baker's team leverages AI integration across various business processes, including generating product descriptions, managing customer inquiries, and enhancing product photography.

a group of men sitting on stools in front of a projection screen — A panel of small business leaders discussed how AI had helped their companies.

The story of CarGari, founded by Rafael Small, demonstrates how AI empowers local businesses to compete with industry behemoths. Despite having fewer resources than large enterprises, AI has enabled Small's peer-to-peer car rental company operates around the clock with a small team.

Transforming Customer Experience and Marketing

In today's digital marketplace, creating engaging content and delivering exceptional customer experiences is crucial. Small businesses are finding AI to be an invaluable asset in these areas. CarGari uses AI-powered tools like Product Studio to transform simple photos into professional social media content, maintaining an active presence across multiple platforms with minimal resources.

The marketing transformation extends beyond content creation. AI-powered analytics help businesses like BE A GOOD PERSON understand their target demographics with unprecedented precision, optimizing marketing spend and improving campaign effectiveness. For SodaPup, AI has revolutionized product marketing, enabling the creation of professional marketing images without expensive photoshoots.

Customer service has also evolved through AI integration. Through Shopify's AI-powered chat function, businesses can provide instant, accurate responses to customer queries, drawing from comprehensive website information about products, policies, and usage instructions.

Navigating the Future

While the benefits of AI adoption are clear, Colorado small businesses are mindful of emerging regulations, with only 37% feeling well-prepared for new requirements. Common concerns include staying informed about evolving regulations, maintaining effective use of AI technologies, and understanding regulatory frameworks.

However, for small business owners across Colorado, AI remains a crucial element of their business strategy. After all, 84% of small businesses using AI in Colorado have expanded their workforce and reported profit growth.