The number of small-to-medium-sized businesses that are using artificial intelligence has more than doubled compared to last year, according to Verizon Business’ fifth annual survey of SMBs. The survey also found a revival in SMB tech spending, concluding that as SMBs conduct more and more business online, they are investing more in support of digitalization than they have in the past three years.
However, four in five of the SMB decision-makers surveyed expressed concerns about the U.S. economy in general, and more than half of them conveyed worries about the financial security of their business and their own job security. A similar number said that they plan to reduce non-essential spending and/or raise prices in the short term.
But technology and connectivity-related spending wasn’t the focus of cuts. In fact, the percentage of SMB decision-makers who said they had added or upgraded technologies in the past year was up compared to last year’s survey, Verizon Business said.
The most common upgrades or additions? More internet bandwidth, faster internet speeds and wireless signal-related investments were the most common—not surprising, given that 38% of SMBs reported that they had added or transitioned to more digital/online operations, and that they were leveraging social media platforms to entice shoppers, with 39% of respondents reporting that their business had social media storefronts. Nearly 75% of respondents also indicated that they had used digital tools to change their processes or increase their revenues within the past year. Respondents also were more likely to report that they were seeing innovation and technological advancement in their business—and increased revenues—than in past years of the survey.
Accompanying those trends, nearly three out of five respondents also said that their SMB had upgraded or added network or device security tools as well as additional training and cybersecurity measures for employees. SMBs in the entertainment, food and beverage, and hospitality industries were more likely to report cybersecurity concerns than SMBs in other industries.
“Though decision makers worry that using AI can open their business up to cyber risks, AI usage has more than doubled compared to 2023, with almost 2 in 5 reporting that their business currently uses AI,” Verizon Business said in the survey report.
“Small business owners are getting the hang of AI, discovering how it can automate time-consuming tasks and enabling them to focus more on their core business operations,” said Aparna Khurjekar, chief revenue officer for Business Markets and SaaS at Verizon Business. “Despite economic and financial concerns, they’re still investing in faster internet, AI tools and social commerce because they understand how these technologies are crucial for their success.”
The survey also reflected optimism for the coming holiday shopping season, with more than half of the responding retailers (52%) preparing for their first in-store holiday season, a figure that was up 13 percentage point from 2023.
The survey was conducted online in August by Morning Consult and included responses from more than 600 SMBs, with fewer than 500 employees.