American Express has released its latest Trendex: Small Business Edition, which found that while businesses see AI as a necessary tool for growth, many question its value and security remains a key concern for non-users.
The report surveyed 1,000 small businesses in the U.S., and found that more than nine in 10 (92%) expect their customer base to change this year, with 75% believing that the change will be more prominent in 2025 than in previous years.
The respondents also said they’re prioritizing this change in strategy, using AI to meet shifting customer demands.
“Five years since the COVID-19 pandemic forced small businesses to pivot, they are embracing a change mindset and customer-first innovation to drive growth,” said Ro Gutierrez, Senior Vice President and Head of Small Business Products at AmEx.
“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.”
AI Among Small Businesses
While AI has been identified as a key technology in shaping businesses’ growth, around half of the survey respondents (44%) said they are not yet using it.
Among those already using AI, 86% said it helps them make more confident business decisions, with positive responses seen in reduced errors, operational efficiencies and employee productivity.
However, issues around deployment remain.
Usability was identified as a key issue, with 87% saying they are still learning how to use AI effectively, and 68% saying they thought AI would have a bigger impact on operations than it has.
In addition, over half (52%) of businesses using AI believe they deployed the tech prematurely, while concerns from businesses still reluctant to adopt AI include data security, cost of implementation and the expense of training employees.
Gutierrez told AI Business that small businesses are uniquely placed to feel the benefits of AI, though they need to adopt a considered deployment strategy to make the most of it.
“Compared to larger companies, small businesses have a competitive advantage in their ability to be nimble and pivot quickly, and historically they’re among the first to test new technologies,” he said.
“When testing AI, small businesses can consider starting with a clear and focused strategy, identifying specific tasks where AI can provide the most value. Even if one tool doesn’t provide the value you anticipated, identify what the experience taught you about how you can better meet your customers’ needs in the future.”
He added that business leaders should stay informed on the latest AI advancements and regulations to ensure it’s being used responsibly.
“By taking a more cautious and strategic approach to adoption, small businesses can maximize the benefits and minimize the risks,” he said.
Looking Ahead
When asked which key themes will shape the next five years for small businesses, respondents pointed to rising labor costs (42%), the need to build cash reserves for unexpected challenges (41%), adapting to economic conditions (40%) and getting their businesses ready for the age of AI (38%).
To deal with these issues, the AmEx report said staying ahead of the AI curve will be crucial. As these tools develop, Gutierrez said expect to see more bespoke solutions to meet small business needs specifically.
“Small businesses want to feel that their tools and solutions are tailored to them and while existing AI tools are promising, there’s not a ‘one size fits all’ solution for small businesses,” said Gutierrez.
“As AI tools mature and the landscape grows, we’ll see more companies developing AI tools that are tailored for specific industries and sectors, and we expect confidence in AI to improve greatly when small businesses feel that their AI products were built with their business in mind.”
