Verizon Survey: Small Businesses Favor AI in Tough Economy

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Let’s dive in!

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Flash Insight

Verizon's State of Small Business Survey reveals that 45% of SMBs are turning to AI solutions to optimize operations and navigate economic headwinds.

Executive Brief

SMBs are facing significant challenges in the current economic climate, from labor shortages to rising costs due to inflation. At the same time, they recognize the need to invest in digital transformation to remain competitive and meet evolving customer demands. The latest Verizon State of Small Business Survey highlights how SMBs are increasingly looking to artificial intelligence (AI) as a strategic tool to address these challenges and drive growth.

Strategic Takeaways

• SMB leaders should prioritize identifying specific operational pain points that AI solutions could help alleviate, such as order processing, inventory management, and supply chain optimization. By automating routine tasks, AI can free up valuable time for business owners and employees to focus on core competencies and customer engagement.

• When evaluating potential AI solutions, SMBs must carefully consider integration challenges and cybersecurity risks. Partnering with trusted technology providers and investing in employee training can help mitigate these concerns and ensure a smooth, secure implementation.

• As SMBs continue to upgrade their internet bandwidth to support digital operations, it is crucial to make proportionate investments in cybersecurity measures. Implementing robust security systems and providing regular cybersecurity training for employees should be an integral part of any AI adoption strategy.

Impact Analysis

• By leveraging AI to streamline order processing, inventory management, and supply chain operations, SMBs can significantly improve efficiency, reduce costs, and enhance customer satisfaction. This can lead to increased sales, customer loyalty, and overall profitability.

• Automating routine tasks through AI can help offset the impact of labor shortages, allowing SMBs to maintain productivity and service quality even with limited staff. This can be especially valuable during peak periods such as the holiday season, where 63% of SMBs expect increased demand this year.

• Investing in AI and cybersecurity alongside bandwidth upgrades can help SMBs build a more resilient, adaptable, and secure digital infrastructure. This can better position them to weather economic challenges, capitalize on emerging opportunities, and maintain a competitive edge in the long run.

Executive Reflection

• How can we identify the specific areas of our operations where AI could deliver the most significant efficiency gains and cost savings?

• What are the potential risks and challenges associated with integrating AI into our existing systems and processes, and how can we proactively address them?

• Are we making adequate investments in cybersecurity to protect our business and customer data as we adopt more advanced technologies like AI?