It's no secret that large companies are using generative artificial intelligence to get ahead – but many small businesses are also finding ways to use this technology to their advantage.
To be clear, according to the 2024 State of Small Business survey of 1,300 respondents by small business software company Gusto, there is still a large portion (43%) of small businesses that have never considered using genetic AI in their operations. But nearly a third are experimenting with it, while a quarter have already seen the benefits, the survey found.
Nicholas Tremper, senior economist at Gusto, said the biggest benefit for small businesses using generational AI is getting ahead in the race for talent.
“Small businesses tell us they continue to have difficulty hiring,” Tremper said. “Employees are looking for ways to use their skills most effectively within the company.”
Tremper said owners and employees suffer from a lack of time and resources and have to take on many tasks, but allowing employees to focus on the skills they want to use while genetic AI takes over the surplus creates a job more attractive. This explains why small businesses equipped with genetic AI are 45% more likely to fill open positions, Gusto reports.
The industries most affected by labor shortages in the U.S. include education, healthcare, hospitality, and professional services (including a wide range such as legal services, landscaping, cleaning, and waste management). Gusto has found that genetic AI is most helpful in some of these industries. “These are businesses that are important to the local economy, but also important to the local culture,” he said.
Ric Nelson, founder and executive director of the Anchorage, Alaska-based disability rights nonprofit Peer Power, suffers from a severe disability, cerebral palsy, which he sustained in an accident shortly after his birth. He wasn't expected to survive, but now he has three degrees and, among other things, runs his own small business.
In a written interview conducted with the help of generative AI, Nelson said, “Since I find typing difficult, AI allows me to translate my information into articles and presentations much more effectively and quickly.”
He uses genetic AI to proofread his work, help him submit highly complex grant applications, and has even written a book. While Nelson's disability previously required him to give short, often incomplete answers, AI has allowed him to “share the full breadth of my ideas and vision,” he said.
“If a small company has a strong vision and strategy, they can now communicate just as strongly as a large corporation,” Nelson said. “It also opens up the opportunity for people with disabilities to start more businesses with greater success, earn their own money and rely less on public support.”
Nelson has now created an AI “clone” of himself in Delphi. By uploading 422,000 documents to a database, people who work with him or are advised by him can chat with the clone about his opinions, ideas and even his own experiences in life and business. Additionally, Nelson now has an audible voice that people can understand at a normal pace without the need for a speaker or interpreter.
Todd Miller, president of Ohio-based Isaiah Industries, which makes specialty metal roofing for residential buildings and has about 50 team members, said his colleague recently used the technology for more than just content creation, website copy and podcast ideas, as well as the Not only did he use the technology to write scripts, but also to create a training video for contractors who sell his products. “We originally wanted to just film the video, but then we decided that AI would save us some time so we could get the training to our customers more quickly,” he said.
In early 2024, Bennett Camarda and her husband Bill took over Limitless Fitness, a New Hampshire gym with more than 10 trainers and 150 active individual customers. “We are using AI to accelerate growth and scale our operations while keeping our customers at the center,” Camarda said.
Camarda said they used ChatGPT Premium to write Excel formulas, which helped them streamline contract workflows from an hour-long process to one that only takes a few minutes. “It has even helped us revamp our brand strategy and refine our tone, voice and messaging to better resonate with our growing customer base, from strength training for grandparents to performance optimization for golfers,” Camarda said. Not to mention use cases like writing operations manuals or creating heatmaps to track peak usage times so they can add more training sessions where they're needed most.
Despite the learning curve that comes with taking over a new business, Camarda said they have already nearly closed the -5% year-over-year revenue gap from previous owners while driving trainer and client engagement to an all-time high.
“Gen AI has given us the time to invest in our community and focus on opening a second location rather than being stuck in day-to-day operations,” she said.
A recent survey from American Express found that small business owners who adopt AI feel better positioned for growth and expansion (50% of companies using AI plan to grow their workforce in 2025, compared to 36% of Non-AI users).
“Small business owners are the ultimate responsible for everything,” Tremper said. “They hire their first employees to help them build the company and take on as many responsibilities as they carry themselves. Generational AI can not only take responsibility away from business owners, but also does some of it for employees and helps increase their productivity.”
Although there is no shortage of risks with generational artificial intelligence—such as data security and hallucinations—small business owners are treading carefully to avoid major pitfalls, according to Tremper. “People are thinking a lot about this technology and thinking about how they can implement it in a way that improves their business and their workforce,” he said.
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