As of 2025, over three-quarters (77%) of businesses are already using artificial intelligence (AI) or exploring its various potential use cases. And despite the fact that robust AI tools are often associated with major corporations, the reality is that any business can benefit from the technology. The question, then, is a matter of knowing how AI fits into your small business. Here’s everything you need to know.
The Hard Facts About AI Use for Small Businesses
According to a 2023 Small Business and Entrepreneurship Council (SBEC) report, the majority of small businesses are using AI tools. In fact, researchers also report that 93% of small business owners view AI tools as solutions that “drive savings and improve profitability.” These sentiments aren’t just wishful thinking, either; research has shown that 92.1% of businesses saw measurable results from their AI tools.
The bottom line is that AI technologies represent an invaluable asset for your small business. All you need to do now is decide how and where to incorporate them into your workflows.
5 Ways Your Small Business Can Use AI
1. Simplify Redundant Admin Tasks
As a small business owner, time is money, and getting bogged down with repetitive administrative work can slow you down. AI-powered tools can automate routine tasks like scheduling meetings, managing invoices, organizing files, and even handling customer inquiries through chatbots.
By automating these processes, you free up time to focus on growing your business and delivering value to your customers.
2. Appeal to Younger Generations
You need a mix of experienced professionals and young, eager talent to grow your business. Adding AI to the mix can make your company a more appealing destination for younger generations of workers.
Think about it; today’s up-and-coming professionals were basically born with smartphones in their hands. It’s only natural for them to expect the latest tech and tools at their disposal when at work. Investing in AI allows you to meet those expectations and make your newest workers feel empowered to be more productive.
3. Create Better Content Faster
Your small business needs a strong online presence that includes a great website and lots of engaging content. While you could hire a marketing agency to help you achieve that goal, that kind of approach can be expensive.
Whether you would prefer to reinvest your extra capital into your business or simply don’t have the room in your budget for a marketing agency, AI tools can help you create great content with minimal cost. They can develop outlines or generate ideas for your next content campaign’ some can even generate entire blogs.
Just make sure to proofread and optimize the content they generate before you post it on your website. AI content generation tools can be a great resource for accelerating content creation, but they aren’t perfect.
4. Improve Customer Service
Today’s consumers want instant responses when they reach out to a business. AI-powered chatbots can answer inquiries around the clock and give customers the instant gratification they often seek. Add these bots to your website to assist with basic service inquiries, appointment scheduling, and other repetitive tasks. You’ll save time and provide a better experience for your customers in the process.
5. Unlock Data Insights
Even the most savvy small business owners shouldn’t rely exclusively on their gut to make decisions. With the right AI tools, you can unlock actionable insights from customer data and make smart decisions that promote the long-term health of your business. These tools can identify sources of waste, detect trends in purchasing activity, and help you shape your business model to maximize demand and growth.
Important AI Considerations for Small Businesses
While AI offers many benefits, it’s important to be aware of some key considerations when integrating AI into your business:
- Accuracy & Fact-Checking: AI-generated content and insights should always be reviewed for accuracy before use. AI tools can sometimes produce errors, outdated information, or biased results.
- Data Privacy & Security: AI relies on data, so you must ensure that any customer or business data is handled securely and complies with privacy regulations. Be cautious when using AI tools that store or process sensitive information.
- Ethical Use: Set clear policies on how AI should be used in your business to avoid misleading customers, employees, or stakeholders. Transparency is key.
- Human Oversight: AI should complement—not replace—human decision-making. Keeping humans in the loop ensures thoughtful, strategic use of AI rather than complete reliance on automation.
Should Your Small Business Have an AI Policy?
If you are using AI in your workflows, the answer is YES. A policy provides clear guidelines on AI usage, ensuring that all employees understand the appropriate and ethical applications of AI tools within the organization. This framework helps in maintaining consistency, protecting sensitive data, and aligning AI initiatives with your business objectives.
Key Components of an Effective AI Policy
- Objectives and Scope: Clearly define the purpose of the AI policy and its applicability within your organization. This includes outlining the specific areas where AI will be implemented and the goals you aim to achieve.
- Ethical Guidelines: Establish principles to ensure AI applications adhere to ethical standards, such as fairness, transparency, and accountability. This helps in building trust with customers and stakeholders.
- Data Privacy and Security: Set strict guidelines on how data is collected, stored, shared, and processed to protect customer and employee privacy. Compliance with data protection regulations, such as GDPR, is essential to mitigate risks associated with data breaches.
- Employee Responsibilities: Define who is authorized to use AI tools and under what circumstances. Clearly outline the responsibilities of employees in developing, deploying, and monitoring AI systems to ensure human oversight and accountability.
- Bias and Discrimination Mitigation: Implement measures to identify and reduce biases in AI systems to prevent unintended discrimination. Regular audits and updates of AI models can help maintain fairness and inclusivity.
- Continuous Monitoring and Evaluation: Establish processes for the ongoing assessment of AI systems to ensure they function as intended and adapt to changing business needs or regulatory requirements.
Need HR Guidance to Help You Implement AI Effectively?
AI offers a slew of perks for small business owners like you. The right tools can reduce your operating costs, help you connect with customers, and assist with content generation. However, it’s important to create policies that promote the ethical use of AI so that you can protect your brand’s reputation.
If you need a little help identifying how and where AI can complement your HR processes in the right way, Focus HR can help. Contact us today to book a consultation.
