In an ever-evolving technological landscape, small to mid-sized businesses (SMBs) are not only keeping pace with the latest advancements but also leveraging them to drive growth and innovation. Among the groundbreaking technologies gaining traction, generative Artificial Intelligence (AI) stands out as a game-changer for small businesses. By harnessing the potential of generative AI, these enterprises are reshaping the way they operate, compete, and connect with customers.
With its ability to automate tasks, optimize processes, and generate novel ideas, generative AI is empowering small businesses to level the playing field and compete with larger counterparts.
Beyond becoming the buzzword for 2023, generative AI has attracted more than $1.7 billion in investments from VC firms. In April 2023, the world’s largest domain registrar and web hosting company, GoDaddy, ran a survey with 1,003 U.S. small business owners in order “to gauge their awareness and perceptions of the transformative technology capturing attention and imaginations worldwide.”
As the survey strongly suggests how generative AI is enabling SMBs to reach new heights of efficiency, it is definitely a strategic imperative for small businesses looking to stay ahead of the curve. Whether you’re a small business owner, an entrepreneur, or simply intrigued by the potential of AI, get ready to discover why generative AI is the key to unlocking a new era of possibilities for small businesses!
Growth-Hungry Small Businesses: Most Challenging Areas
The GoDaddy survey surfaces that 83% of its respondents are willing to grow and 47% are aiming at increasing their revenue substantially in the next 12 months.
While holistic business growth is often a team responsibility, such responsibilities are not without their challenges! Let’s see what the facts
say—
“1 in 4 small business owners find creating marketing content for digital use to be the most difficult activity to manage.”
In fact, some of the activities that SMBs find most difficult are attracting new customers, maintaining a work-life balance, knowing where and how to market the business, etc. The GoDaddy survey pinpointed the weak spots in small to medium businesses, and where exactly they seek outside help—
- 22% of respondents in growing the business and/or increasing revenue
- 20% of them in attracting new customers
- 14% in maintaining a work-life balance
- 7% in knowing where and how to market the business
- 6% in creating marketing content for social media or website or online store
With the current trend, self-serve generative AI tools may seem to be the obvious answer to solving the aforementioned challenges for small businesses with their promises to enhance productivity and agility in day-to-day tasks. But the complete adoption of these tools by SMBs for scaling businesses would be quite another thing to observe. Going by the market pulse, successful implementation and scaling of generative AI within SMBs will require external assistance from AI solution providers, consultants, or technology partners who possess the necessary expertise to navigate the complexities of generative AI.
Role of Generative AI in Small Businesses
64% small business owners reported using generative AI tools for marketing.
Although it is true that small businesses can apply the boons of generative AI across diverse functions, including marketing, sales, customer relations, and HR among others, how many small businesses have been able to appreciate its benefits at work?
Well, the survey stats hint at moderate vibes. It shows, about 11% of SMBs have tried using generative AI tools for business and 27% for fun! However, a whopping 62% are still far away from such tech implementations. Evidently, the most AI-friendly age group found in the survey is Gen Z followed by millennials.
One interesting fact that the deeper analysis of the survey brings upon is the predominance of ChatGPT. Entrepreneurs, who have been using generative AI in their businesses, have reported using AI-driven natural language processing tools, such as ChatGPT (70%), Bard (29%), Jasper (13%), and so on.
The AI Optimism of Small Businesses
75% of respondents, who have explored the use of generative AI, found that the tools helped produce “Very Well” and “Excellent” results in business.
While a substantial chunk of SMB entrepreneurs still haven’t introduced generative AI into their businesses, 57% of the survey participants have expressed their interest in the matter, indicating near-future usage. And on the top of AI-adoption list, entrepreneurs and business owners have placed categories, like marketing, online presence, information analysis, customer support, etc.
Advancing generative AI adoption within the SMB space, GoDaddy has announced multiple new products and services that leverage generative AI to help SMBs thrive by fast tracking time-consuming tasks. These all-new AI products are aimed at what SMB’s highlight as their top business challenges and for which they constantly seek outside help. These AI tools have been built with entrepreneurs in mind, so that businesses can obtain the following without much fuss:
Summing up, the key digital marketing trends for SMBs in 2023 will be:
- High-quality and compelling online product store descriptions
- Summarized customer service messages
- Easy-to-generate, instant, and catchy digital ads on Facebook and Instagram
“With these new tools—and many others GoDaddy will be launching in the coming weeks and months—small business owners can save time and win new customers using the best of what constantly improving AI has to offer.”
—Gourav Pani, GoDaddy U.S. Independents President
In conclusion, generative AI is not just a technological trend but a transformative tool that supercharges small businesses to compete, innovate, and thrive in today’s fast-paced, data-driven world. While challenges exist, the benefits far outweigh the hurdles. Unquestionably, the future of small business is here, and generative AI is leading the way!
