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Let’s summarize:
- Uber struggles to justify AI
- Starbucks discontinues AI inventory system
- OpenAI pushes back against the jobs apocalypse
- TikTok shoppers are buying
- 20 AI tools for your business
Uber’s COO struggles to justify AI’s ROI. Can you blame him?
Large companies are investing heavily in AI, and Uber is rethinking its strategy. Andrew MacDonald, president and chief operating officer, said he has yet to see any measurable improvement from the enhanced functionality provided to its customer base through increased “token consumption” (AI usage). “We don’t have that connection yet,” McDonald said. According to the company’s CTO, the company spent its entire 2026 AI budget on Claude code alone just a few months into the year. This is a surprising statistic for McDonald’s. He shared that this sparked a “company-wide conversation” about the cost of AI and what would be compromised to maintain it (such as headcount). Until the ROI is clear, Uber plans to reevaluate its investment strategy. “We’re going to have to start talking about token consumption and the associated costs and headcount,” McDonald said. (Source: Quartz)
Why this is important for small businesses:
As a small business owner, don’t you feel better about your decision to step into the world of AI? Large companies continue to invest heavily in AI, but the results continue to be disappointing. In addition to illusions and inaccuracies, the real cost of using some of these platforms can be quite high, and we’re starting to hear that the ROI isn’t easy to justify for some companies like Uber. The important point here is that AI still has a ways to go before it becomes truly useful. It will happen, but first let’s throw money at big companies and make them figure this out.
Starbucks retired its AI inventory system in just nine months. Not better than humans yet.
Starbucks discontinued its AI inventory management system less than a year after the integration. The system, which Starbucks employees have described as “unreliable,” is designed to improve the company’s ability to stay on top of inventory and reduce stockouts. Announced in September last year, the system was intended to “support accuracy and product availability” as part of CEO Brian Nicol’s strategy to improve chain issues caused by product shortages. However, miscounting and mislabeling of products ultimately resulted in the coffee giant having to remove some of its promotional materials after the problems were brought to light. Employees reportedly expressed gratitude for being heard about their experiences with technology inaccuracies. (Source: Restaurant Dive)
Why this is important for small businesses:
The report warns against blindly relying on technology without thorough testing. That’s a good suggestion. Regardless of whether AI is used, it is important to run the systems in parallel for a reasonable amount of time to assess whether they are actually reliable over the long term.
Sam Altman isn’t worried about the job collapse, but that’s not surprising.
It may just be a coincidence that OpenAI CEO Sam Altman has changed his outlook on impending job losses as a result of AI, following Pope Leo’s recent comments about the serious risks of AI. At a conference in Sydney, Australia, on Tuesday, Altman said the predictions he and his company had made about the socio-economic impact of AI were “pretty wrong” and that the technology had not caused widespread job destruction as many expected. “I’m glad we were wrong on this,” Altman said, noting that the “human part” of the job remains far more important than many engineers expected. He shared personal examples of using AI to respond to Slack and emails, finding that people prefer direct human interaction. (Source: Reuters)
Why this is important for small businesses:
My comments on this can be found here. Like everyone in the industry, I have no idea where this is going. Because there’s no way to know. OpenAI’s CEO may be seen as bullish on AI and downplaying fear, but his opposition can breed fear. Will all these jobs disappear? It’s probably not apocalyptic. But history shows that technology replaces humans, and it is clear that the AI wave will have the same impact.
TikTok has become a leading destination for selling your products.
TikTok Shop is a huge success for thousands of small business owners. The numbers announced in modern retail store TikTok Shop saw a 66% increase in sales for small businesses with less than $15 million in revenue. Launched in September 2023, the platform has grown with over 215,000 small business owners, an increase of 25% (44,000 small businesses) year over year. The figures, from a survey of 6,000 consumers by GlobalData, show that 67 percent of consumers visit TikTok shops to find new products, ahead of Amazon (57 percent) and search engines (35 percent). (Source: Keyword)
Why this is important for small businesses:
The key metric here is that 70% of TikTok users said they purchased a product based on a recommendation. As the data shows, TikTok has evolved into a competitive shopping platform, providing a profitable avenue for small business owners. If you run a small business, it’s important to sell your products through multiple channels to reach the widest possible audience. TikTok is clearly becoming yet another channel.
Who knows, maybe one of these 20 AI tools could help your business.
Intuit has published a list of the 20 best AI tools for enterprises. With a plethora of tools out there, Intuit “cuts through the noise” with guides to help you choose the tools that fit your specific workflow, budget, and operational needs. Examples on the list include Tableau GPT for data analysis, ChatGPT for content creation, Zendesk AI for customer support, and Salesforce Einstein for sales and marketing tasks. For small and medium-sized businesses looking for quick and effective assistance in improving overall productivity, automating operations, and expanding services, the U.S. Chamber of Commerce has listed five B2B AI startups focused on solving real business problems. According to the article, all five companies were chosen because they specialize in small and medium-sized businesses and offer applications to improve efficiency and keep operations competitive. Follow the links to learn more about each company and its founder. (Source: Intuit, U.S. Chamber of Commerce)
Why this is important for small businesses:
Want to bring AI to your business? Take advantage of office platforms, learn about the features offered by leading software providers, and explore some of the apps mentioned in both articles above.
Note: Do you have a technology story that small business owners should know? Do you mind sharing my opinion? X Please share with me at @genemarks.
