Here’s why SMBs believe AI is going to give them the edge when it comes to success

According to recent research conducted by GoDaddy, small business owners are increasingly turning to artificial intelligence (AI) to gain a competitive edge in the market. The study, which surveyed over 500 entrepreneurs in the US, reveals a growing confidence in the capabilities of generative AI tools to drive business success.

The findings suggest a positive shift in attitude towards AI among small and medium-sized businesses (SMBs). Three out of four respondents believe that generative AI (GenAI) will provide them with an advantage over similarly-sized competitors, while more than two-thirds (68%) view AI as a means to compete more effectively with larger enterprises.

The adoption of AI among SMBs is on the rise, with nearly three-quarters (73%) reporting that they have experimented with the technology, and over a quarter (26%) already using AI for business purposes – a significant increase from 11% in the previous year.

While generative AI gained traction with the introduction of ChatGPT in November 2022, SMBs are now expanding their use of AI beyond simple content generation. The study found that more than two in five (44%) SMBs are using AI to enhance sales performance, representing a twofold increase compared to 2023.

Amy Jennette, Senior Director of Marketing at GoDaddy, commented on this trend, noting that small businesses are leveraging AI technology at an unprecedented rate, marking the beginning of the AI revolution.

Despite initial concerns about AI potentially displacing human jobs, the survey reveals low levels of apprehension among SMBs. Only one in ten respondents expressed concern about AI outperforming them in their roles, with the majority (89%) expressing confidence that AI will have a positive impact on their business.

Jennette also emphasized the tangible benefits of AI deployment across the SMB landscape, highlighting potential cost savings of over $4,000 and 300 hours of work annually. This underscores the significant productivity gains that AI-powered tools can offer to small businesses.