Published on January 4th, 2025
Introduction
Artificial Intelligence (AI) is no longer just a tech buzzword. What was once a niche topic is now part of everyday conversation. In 2023, AI saw massive growth, with companies like Google, Microsoft, and Meta investing billions. As we move into 2024, the momentum around AI continues to grow, and small and medium-sized businesses (SMBs) are ready to embrace its transformative power.
Kanishka Roychoudhury, General Manager of AI/ML at DigitalOcean, shares his insights on how AI will reshape SMBs in 2024.
AI Adoption Will Accelerate in 2024
In 2024, AI adoption among SMBs will reach a tipping point. DigitalOcean’s recent survey reveals that even with economic challenges, SMBs are committed to integrating emerging technologies like AI into their operations. About 43% of SMB leaders are already using AI tools for both personal and business purposes. Furthermore, 78% of these leaders plan to increase their AI usage in 2024 compared to the previous year.
SMBs account for 44% of U.S. economic activity and 64% of new jobs annually. As they adopt AI more rapidly, their impact on the U.S. economy will be significant. Moving from the early stages to more widespread implementation, SMBs will play a key role in shaping the future of AI technology and its application.
SMBs Will Have a Seat at the Table in AI Regulation
As AI evolves, its regulation becomes a hot topic. So far, major tech companies and large enterprises have largely shaped AI conversations and regulatory frameworks. However, it is essential that SMBs have a voice in this process.
Without SMBs’ perspectives, the full economic benefits of AI might not be realized across all sectors. Including SMBs in discussions about AI regulation will help ensure that policies are balanced and promote innovation across businesses of all sizes.
AI Will Act as a Business Accelerator for SMBs
AI is not just a tool for efficiency; it is also a business accelerator. According to the Small Business and Entrepreneurship Council, 48% of small businesses have adopted AI tools in the past year. These businesses have used AI to save time, cut costs, and create new revenue streams.
In 2024, AI will become more widespread in industries where it has not yet been fully utilized. Retailers, for example, will use AI to improve inventory management and personalize customer experiences. In other sectors like transportation, finance, insurance, and real estate, AI will optimize operations, enhance customer service, and drive growth.
Customer Support Will Be the First AI Use Case for SMBs
For many SMBs, customer service is critical. In 2024, AI-powered customer support will be the first major use case for many SMBs. Generative AI tools such as chatbots and conversational call agents will transform the way businesses interact with customers.
These tools offer several benefits. First, they can handle repetitive tasks, freeing up human agents for more complex issues. Second, they improve the customer experience by offering faster, more consistent support. As a result, SMBs will save costs, optimize resources, and boost customer satisfaction—key elements for long-term success.
Conclusion: A Bright Future for SMBs with AI
AI was initially considered a tool for large enterprises, but advancements in AI technology now make it accessible to businesses of all sizes, including SMBs. In 2024, we expect a significant acceleration in AI adoption, particularly in customer support and business optimization.
SMB leaders who embrace AI will not only unlock new growth opportunities but also have a say in shaping the future of AI technology. By adopting AI tools, these businesses can engage customers more effectively, streamline operations, and scale faster.
As SMBs move from discussing AI to implementing it, they will harness its full potential, driving better customer experiences, greater operational efficiency, and a stronger competitive edge.
