AI Turning Off SMBs, Believe It To Have Little Impact Compared With Automation

AI is being hyped as the magic tool to give small and medium size businesses a lift when it comes to competing with others, but a recent study of 750 SMBs suggests otherwise. Could it come down to semantics and the ability to learn and apply something new?

In fact, 43% of SMBs believe AI will have no impact on their industries at all, according to data released Friday.

Localogy, a not-for-profit association of companies engaged in local and location-based marketing; and Duda, a website builder for agencies and professionals supporting small businesses, conducted the study. Survey results found 23% had negative feelings toward AI to help market or manage their business.

Only 29% thought of AI technology as positive. Of those who rated it as negative, 46% believe AI is overhyped and are doubtful it can achieve effective results.

When replacing the acronym "AI" with the word "automation," sentiments from SMBs shifted more toward positive. The shift went from 50% believing they would not use AI tools for their business to 30%.