Artificial Intelligence, Running an SMB: Friend or Foe?
Small and medium-sized businesses (SMBs) are increasingly turning to new technologies like AI and digital payments to drive growth and address their challenges. Financial institutions are recognizing this trend and are actively supporting SMBs in their investment endeavors.
With the rapid advancement of technology and the shift towards digitization, SMBs are focusing on investment opportunities to secure their market share. Financial firms are playing a crucial role in catering to the specific needs of SMBs.
SMBs Embracing Emerging Technology
One of the key areas where SMBs are directing their investments is in emerging technologies, particularly AI. Research indicates that a significant portion of small businesses are enthusiastic about AI, viewing it as a tool for expansion, hiring, and enhancing productivity.
Gina Taylor Cotter, EVP & GM of Small Business Products at American Express, highlighted that small businesses are leveraging advanced tech solutions to stay competitive and drive growth. The adoption of AI can help businesses differentiate themselves from competitors and streamline various operational aspects such as bookkeeping, payroll, and hiring.
However, SMBs face challenges in integrating AI into their operations, including limited resources for technology upgrades and concerns about the unknown. Despite the potential benefits, there is a level of apprehension among SMBs due to budget constraints and market limitations.
Technological Obstacles and Opportunities
Financial institutions are also grappling with technological obstacles, such as outdated legacy systems and the need to align technology with the preferences of different generations. In a working group focused on creating products for Gen Z, industry executives discussed the challenges posed by outdated systems and the importance of adapting to evolving consumer preferences.
While SMBs are keen on adopting AI to enhance their competitiveness, there is a level of uncertainty within the community. Some businesses are eager to explore the capabilities of AI, while others are more cautious due to budget constraints and market dynamics.
The Future of AI in SMBs
As AI continues to evolve, SMBs will need to navigate the complexities of integrating this technology into their operations. Financial institutions are playing a pivotal role in supporting SMBs in their AI adoption journey and addressing the challenges associated with technological advancements.
In conclusion, the intersection of AI and SMBs presents both opportunities and challenges for small businesses looking to leverage technology for growth and innovation. With the right support and strategic investments, SMBs can harness the power of AI to drive their businesses forward.
