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    Home - E-commerce & Retail - Small businesses say AI hasn’t lived up to the hype
    E-commerce & Retail

    Small businesses say AI hasn’t lived up to the hype

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    Small businesses say AI hasn’t lived up to the hype
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    Dive Brief:

    • Small businesses using AI say the technology hasn’t lived up to expectations, according to an American Express survey of 1,000-plus U.S.-based decision-makers at small businesses published in early May.
    • Among the 56% of businesses using AI, more than two-thirds expected the technology to make a bigger impact on their business than it has. Around 1 in 2 decision-makers said they thought their business used AI prematurely, and nearly all admit to still figuring out how to use the technology effectively.
    • AI adopters, however, have already seen some benefits. Nearly half of small businesses have experienced reduced error rates, operational efficiencies, employee productivity boosts and increased sales. 

    Dive Insight:

    Technical chops are ubiquitous among small businesses, which have had to deal with many of the same challenges as large enterprises, including threats to operations from cybersecurity incidents and the need to unlock efficiencies. 

    Most small business executives entered the year with digital transformation on the brain and AI on their radar. Around half of small businesses said they are planning to add more AI applications in 2025, according to a JPMorgan Chase report published in January. 

    Technology that can help companies save time, like AI, is alluring, especially for smaller operations. 

    Still, small businesses have concerns around AI, tied to data security, tool costs and how time-consuming employee training can be, according to the American Express survey. 

    “As these small businesses look to the future, they anticipate that the next five years will be defined by building a strong financial footing and modernizing their technology,” Ro Gutierrez, SVP and head of small business products at American Express, said in a recent blog post.



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