Archive · 16 Nov 2025
Small Businesses Embrace AI for Efficiency and Cost Savings
Imagine you have a small shop and a lot of chores to do, like figuring out prices or answering customer questions.
Some grown-ups are now using smart computer helpers called AI.
These AI helpers can do some of the chores very quickly, like making reports about how much things cost or writing answers to customers.
One person uses AI to help run his cafes and bars, like having a super-smart assistant.
Another person uses AI to help answer emails for a cooking school, but sometimes the AI makes mistakes and needs a human to fix it.
Some businesses use AI to help build their websites or plan projects.
Even though big companies have lots of people to help with new technology, these small business owners are figuring out how to use AI themselves.
Many more small businesses are starting to use AI now than just a little while ago, because it helps them save time and money.
Small businesses are increasingly adopting generative AI tools for operational tasks.
AI is being used for cost analysis, customer service, website development, and content creation.
Business owners report AI helps reduce the need for certain specialized hires.
While AI offers benefits, occasional inaccuracies like 'hallucinations' require human oversight.
Generative AI usage among small businesses has significantly increased in recent years.
- Who
- Small business owners and their employees across various industries, including hospitality, retail, education, and apparel.
- What
- Adopting generative AI tools like ChatGPT, NotebookLM, and Gemini to automate tasks, improve efficiency, and reduce operational costs.
- When
- Increasingly in the last two years, with a notable rise in the past year.
- Where
- Across various locations in the U.S., including Chicago, San Francisco, and Minneapolis.
- Why
- To handle tasks that were previously time-consuming, expensive, or required specialized hires, enabling small businesses to operate more efficiently and competitively.
- AI Use by Small Businesses
- 58% of small businesses surveyed use generative AI, up from 40% in 2024.
- Previous AI Use
- 40% in 2024, more than double from two years prior.
- Example 1: Mike Salvatore
- Uses ChatGPT for cost-of-goods reports and NotebookLM for business analysis podcasts.
- Example 2: Manville Chan
- Uses Gemini and ChatGPT for customer service email drafting at Story of Ramen cooking school.
- Example 3: Jeff Taxdahl
- Used AI to update website code for Thread Logic apparel firm.
- AI Applications
- Scheduling shifts, event seating arrangements, visualizing design changes, customer service, marketing content, website coding, project blueprints, and content repurposing.