Can AI save small businesses? Getty Images
It’s been almost two years since the term “great resignation” was coined, but many companies are still struggling to hire enough workers in a historically tough labor market. This is especially true for small business owners. Small business owners are increasingly being influenced by Silicon Valley by leveraging artificial intelligence to get their jobs done.
Main Street companies are looking at AI as an alternative to rising labor costs that have put many on the verge of shutting down for months. Their adoption of this technology would be a big shift from how AI is being used today, mostly by larger companies with more resources and more cutting edge.
A survey released Thursday by Internet services company GoDaddy found that only 11% of small business owners have tried AI to support their operations, while 57% said they could use a generative AI product like ChatGPT. say they want to know how they can improve their business. GoDaddy said he interviewed 1,003 small business owners for the survey in April.
Business owners interested in adopting AI will be encouraged by the results of other small businesses that are already experimenting with the technology. Three-quarters of the companies that have used AI tools said they performed at least very well, and only 4% said their business was hit as a result.
“Small business entrepreneurs quickly realized that generative AI was already well-equipped to help with the most difficult tasks to tackle, either because they lacked the time or because they needed skills outside the wheelhouse. It’s starting,” said the percentage of American independent advocates who cover American entrepreneurship at GoDaddy.
Most owners say that AI has enabled them to delegate specific tasks such as marketing, content creation, and dealing with customer service, allowing them to focus on other important responsibilities such as growing customers and revenue. says. This is a larger trend with companies looking for ways to automate more repetitive and common tasks using his ChatGPT and similar AI tools developed by tech giants Microsoft and Google. is telling.
According to a February report from job advice platform ResumeBuilder, about half of business leaders have adopted ChatGPT, half of them already replacing some employees who perform tasks such as coding, content creation and customer support. Turned out to be using ChatGPT. Nearly all companies surveyed said the strategy saved them money, with 48% saying they saved him $50,000 or more and 11% saying he saved $100,000 or more.
AI can also be a game changer for small businesses. Nearly half of small businesses had at least one open job opening as of April, according to a report earlier this month from the National Federation of Independent Businesses, a small business association. But consumer spending remains strong, meaning small businesses still need serious workers to keep up with demand, the report said.
The most common labor problems faced by small business owners are the lack of qualified labor and high hiring costs. Inflation of raw materials and wages has been one of the main concerns of small business owners since last year, according to the Chamber of Commerce, and the recent banking crisis has pushed the lifeline of small business owners, small businesses and regional banks. It is said that there is also a concern that the loan from the bank will also be delayed. SMEs may run out of business due to the credit crunch.
“The labor market continues to be a major challenge for small business owners,” NFIB chief economist Bill Dunkelberg said in a statement accompanying this month’s report. “More and more employers are raising wages to compete, but the quality of work remains a serious problem for employers.”
AI could help alleviate some of this pressure, but the vast majority of executives are still tech-savvy, and educational tools that help small businesses integrate AI into their operations could help. there is. Only 33% of GoDaddy survey respondents said they could explain generative AI to a friend, and owners over 55 who own half of small businesses in the US by 2021 will experiment with generative AI This group was the least likely to do so. AI
AI companies and experts have tried to fill the gap that small business owners are not getting from technology. Back in 2021, the Chamber of Commerce also worked with small businesses to tell how AI can help entrepreneurs improve their customer service, recruitment and marketing strategies. Earlier this month, Microsoft released a guide on how to implement AI, especially for small businesses, using AI and educational tools.
Small businesses are notorious for being slow adopters of new technology, but their smaller size means they are more flexible, and when they do decide to adopt a new technology, it doesn’t take long to make an impact. According to GoDaddy research, improved familiarity with AI could be the bridge to help small businesses gain a foothold in today’s labor market.
