No longer solely for large corporations, AI for small business can help small business owners transform their operations and improve profitability. To learn more about Artificial Intelligence (AI) for small business, dive in to our comprehensive guide on AI applications for small businesses.
View our related business research here: Artificial Intelligence Industry Research.
You can also receive free professional business advice and free or low-cost training from your local Small Business Development Center!
An Introduction to AI for Small Business
Artificial Intelligence is defined as “technology that enables computers and machines to simulate human learning, comprehension, problem solving, decision making, creativity and autonomy.” Insights from McKinsey’s annual “State of AI” survey, points to a steady increase in the global adoption of AI across multiple industries. This trend is mirrored in the United States, where larger corporations are paving the way for small and medium-sized businesses adopting Artificial Intelligence in their day-to-day operations. The rapid acceleration of AI adoption nationwide is driven in part by the widespread use of generative AI tools like ChatGPT. With broad applicability, these tools present many opportunities for business owners to streamline and enhance processes. For small businesses, application of AI spans a wide range of functions, from automating accounting processes to creating targeted marketing campaigns based on consumer analytics. The sheer amount of information on AI is staggering, so we’ve compiled these resources to introduce small business owners to the concept of artificial intelligence and to help determine if it is the right fit for their enterprise.
Benefits and Challenges of AI Adoption
Prior to adopting Artificial Intelligence, it is important to weigh the benefits and challenges of AI implementation. Check out the following links to help you evaluate Artificial Intelligence for your organization.
Benefits
AI is highly advantageous for a business and its operations. View the following links which demonstrate how AI could help your business:
- Superagency in the workplace – McKinsey & Company
- AI Productivity – IBM
- AI-First Leadership: Embracing the Future of Work – Harvard Business Review
- AI Business Predictions – PwC
- 18 Ways AI Can Increase Efficiency And Profitability Across Industries – Forbes
Challenges
While adopting AI has many potential benefits for a small business, it can also present many challenges for organizations. Increased deployment of AI tools to carry out business functions may leave a business vulnerable to cyber-attacks.View the following articles that detail the most common issues faced when implementing AI:
- The 5 biggest AI adoption challenges for 2025 – IBM
- AI is the greatest threat—and defense—in cybersecurity today – McKinsey & Company
- AI Isn’t Plug-and-Play: Startup AI Adoption Challenges Nobody Talks About – Hubspot
- 15 AI risks businesses must confront and how to address them – TechTarget
- Navigating the ethical and legal risks of AI implementation – CIO
Applications of AI for Small Business
The potential applications of artificial intelligence are innumerable. Here are assembled resources pertaining to a few of the many ways that AI could change your business operations.
Accounting
Accounting is incredibly important for small businesses, as many fail due to poor financial management. The following resources describe how AI can improve accounting processes:
- How generative AI can make accountants more productive – MIT Sloan
- CPA’s Generative AI Toolkit – CPA
- How Artificial Intelligence May Impact the Accounting Profession – The CPA Journal
- AI in Accounting: A Transformation – Oracle NetSuite
- The (Very) Emerging Role Of AI In The Accounting Industry – Forbes
Customer Service
Customer service is critical for a business’ success and can lead to a larger customer base. The following articles demonstrate how AI can help small businesses improve customer service:
- AI in customer service: All you need to know – Zendesk
- The future of AI in customer service – IBM
- How AI Is Changing the ROI of Customer Service – Harvard Business Review
- Customer Service: How AI Is Transforming Interactions – Forbes
Cybersecurity
Cybersecurity concerns are intensifying, so check out the following links to see how AI integrates with cybersecurity:
- Using AI for Cyber Defense – The Wall Street Journal
- AI is the greatest threat—and defense—in cybersecurity today – McKinsey & Company
- How to Avoid Common AI Scams – Morgan Stanley
- The Role of AI in Cybersecurity – Crowdstrike
Hiring and Recruitment
As a small business grows, so does the need for employees. The following links show how Artificial Intelligence can help with recruitment, hiring processes and human resources for small business:
- The Future of Hiring: The Role of AI in Modern Recruitment Strategies – SHRM
- How to use AI for ranking candidates – CareerBuilder
- How AI Is Changing Recruitment – BCG
- The AI Recruitment Takeover: Redefining Hiring In The Digital Age- Forbes
Marketing
Marketing is key for small businesses because it helps create connections with potential customers and develop long-term client relationships. With the rise of digital marketing and demand for social media presence, small business now have even more tools and resources to engage their audiences. To learn more about AI marketing, explore the following links:
- A guide to AI in marketing – IBM
- AI Will Shape the Future of Marketing – Harvard
- How AI Is Transforming The Marketing Industry – Forbes
- 9 AI Tools to Improve Your Business’s Marketing – U.S. Chamber of Commerce
- 8 ways to use AI in digital marketing – HubSpot
E-commerce and Digital Presence
Having a digital presence and quality website is growing in relevance as shoppers move increasingly towards buying online. Utilizing AI in practices such as search engine optimization (SEO) can help your small business get noticed. Check out the following links to learn how to increase your ability to sell online with AI:
- AI in Ecommerce 2025: 7 Use Cases & A Complete Guide – Shopify
- AI in commerce: Essential use cases for B2B and B2C – IBM
- How AI Is Transforming The Future Of SEO – Forbes
Small Business AI Adoption
Before diving into the adoption of Artificial Intelligence for your small business, it’s crucial to recognize that this decision represents a significant investment of time, resources, and effort. Understanding the landscape of AI adoption and preparing your business for this transformative journey is essential for maximizing the potential benefits while mitigating potential risks.
Before embarking on the journey of AI adoption, consider the following key factors to assess whether Artificial Intelligence technologies are the right fit for your small business:
Considerations for AI in Business
The decision to implement Artificial Intelligence is a major step for any small business. The following links will help you decide if Artificial Intelligence technologies are worth it for your business:
- NIST And CISA: 13 Must-Review Resources For SMBs – Forbes
- Best practices for effective AI implementation – Microsoft
- AI in business: How companies are using artificial intelligence to scale smarter – NIQ
Vendor Evaluation
It is not only important to ensure the AI solutions fit your business needs but also the vendor. Check out the following links to help you evaluate potential vendors:
- Generative AI Vendor Risk Assessment Guide – FS-ISAC
- AI as a Service: Top AIaaS Vendors for All Types of Businesses – Shopify
- Risk Management in the Age of Artificial Intelligence – Cloud Security Alliance
Software Evaluation
Not all AI software will fit every business’ needs. Check out these resources to help you determine key characteristics you may want in your software:
- Artificial Intelligence Risk Management Framework – NIST
- 10 Considerations When Evaluating An AI Tool – Forbes
- Gartner Experts Answer the Top Generative AI Questions for Your Enterprise – Gartner
AI Implementation
The process of implementing AI can be difficult for a small business. We’ve compiled the following links to assist business owners pursuing Artificial Intelligence adoption in their business:
- The quick-start guide to implementing AI in your business – Microsoft
- AI implementation: 13 steps to achieve success in your business – TechTarget
- How Small and Medium Businesses Can Get Started with Artificial Intelligence – AWS
Adoption Trends & Readiness for Small Business
Understanding how small businesses are adopting AI, and the barriers they face are critical. Here are some links we’ve compiled to understand these trends better:
- AI for small business – SBA
- The Majority of Small Businesses Embrace Artificial Intelligence – U.S. Chamber of Commerce
- AI in Action: Three High-Impact Use Cases Small Businesses – Biz Tech Magazine
- Beyond Efficiency: Small Businesses Look to AI for Competitive Edge – Paypal Newsroom
Additional Small Business Resources
Already in business or thinking about starting your own small business? Check out our various small business resources:
- View small business help topics here: Small Business Information Center
- View more business reports here: Small Business Snapshots
- View industry-specific research here: Market Research Links
- View business plans samples here: Sample Business Plans
- View our small business cybersecurity resources here: Cybersecurity
Remember, you can also receive free professional business advice and free or low-cost business training from your local Small Business Development Center!
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