Small and medium-sized businesses (SMBs) are increasingly embracing artificial intelligence (AI) and technology as part of their operations, according to Verizon Business’s recent State of Small Business Survey. The findings demonstrate a significant shift in how SMBs leverage tech to boost efficiency, cut costs, and ultimately stay competitive in a rapidly evolving market. From AI implementation to increasing investments in connectivity and social media engagement, this transformation reflects growing trends among SMBs nationwide. Let’s dive deeper into the survey results and explore what they mean for SMBs moving forward.
AI Adoption Among SMBs Doubles in 2024
The most striking insight from the Verizon Business Survey is the doubling of AI adoption among SMBs, with 39% of businesses now using AI in 2024 compared to 14% in 2023. This rapid rise can be attributed to two significant factors: the increased familiarity with AI and the growing number of accessible, affordable AI-powered tools that SMBs can integrate into their operations.
Many decision-makers within SMBs have become more comfortable using AI to solve business challenges, optimize processes, and identify growth opportunities. These AI-driven solutions range from automating customer service through chatbots to deploying predictive analytics that help businesses forecast demand and adjust supply chains accordingly. The practical application of AI is now more attainable than ever, creating significant opportunities for SMBs to improve efficiency and boost customer satisfaction.
However, with this AI adoption surge, there are growing concerns about data privacy and cybersecurity. The survey highlights that, while SMBs are excited about AI’s possibilities, they are increasingly cautious about protecting customer data and avoiding vulnerabilities that could expose their businesses to risks.
Technology Investment at All-Time Highs for SMBs
Another major trend from the survey is that SMBs are investing more in technology than in the past three years. The rise of digital business models has fueled this surge in tech spending. 38% of SMBs added new online or digital operations within the last year, prompting investments in connectivity and digital tools.
A significant portion of this investment has gone into upgrading internet connections, with 66% of respondents reporting that they improved their internet bandwidth. Reliable and fast internet is a critical asset, especially as more SMBs adopt remote or hybrid work models and rely on cloud-based services to manage their operations.
Beyond bandwidth, SMBs are increasingly adopting cloud computing, cybersecurity solutions, and collaboration tools to enable seamless communication, data sharing, and business continuity. These investments not only empower businesses to remain agile in a competitive environment but also help them scale more effectively as demand grows.
Economic Concerns Persist, but SMBs Remain Optimistic
Despite their optimism about technology, most SMBs still grapple with broader economic concerns. The survey reveals that 83% of SMBs are worried about rising inflation, while four out of five are concerned about the general state of the U.S. economy. These economic anxieties have led to increased apprehension over their businesses’ financial security, with 62% expressing concern about their business’s future and 54% fearing for their job security.
Yet, despite such concerns, SMB owners remain hopeful about their short-term and long-term prospects. Half of SMBs expect their financial security to improve personally and for their business over the next few months. This optimism is further supported by expectations that their companies will be in a better economic position next year.
Brick-and-Mortar Stores See Resurgence for Holiday Retail
A surprising finding from the survey is the comeback of brick-and-mortar retail, particularly during the holiday season. Despite the increasing digitalization of business operations, SMBs report that physical retail is still a critical part of their revenue strategy.
According to the survey, 59% of SMBs see increased demand during Small Business Saturday, while 52% of retailers prepare for an in-store-first holiday season. This shift marks a 13-point jump from last year. It underscores the importance of balancing online and offline sales channels, especially in a post-pandemic world where consumer preferences are still evolving.
SMBs are positioning themselves to meet the expected rise in holiday demand, with many taking a hybrid approach that blends online marketing and physical retail strategies. For example, many businesses use social media promotions to drive traffic to their e-commerce sites and in-store experiences.
Social Media Driving SMB Engagement and Sales
Another key highlight from the survey is how social media has become a primary tool for SMBs to promote their businesses and engage customers. A whopping 84% of SMB decision-makers use Facebook as a promotional platform, with others branching out to Instagram (67%), LinkedIn (64%), YouTube (64%), TikTok (57%), and X (formerly Twitter, 54%).
For many SMBs, social media isn’t just about marketing—it’s about creating digital storefronts and establishing direct communication channels with customers. Nearly 39% of respondents have implemented social media storefronts, allowing them to sell directly through platforms like Facebook and Instagram. This transforms how SMBs manage their sales and customer relationships, making social media an indispensable tool for growth.
Verizon Small Business Days: A Tech Boost for SMBs
Verizon Business is hosting its Small Business Days from October 14-20 as part of its ongoing support for small businesses. It offers small business owners nationwide access to free tech consultations and exclusive deals. During this event, companies can benefit from:
- Special savings: Get a free 5G phone with Verizon Business, no trade-in required, and up to $300 off when transferring an existing number.
- Personalized consultations: Verizon specialists will provide complimentary tech assessments, helping SMBs identify tech gaps and recommending tailored solutions to help them thrive.
These promotions underscore Verizon’s commitment to empowering SMBs with the tools and technologies they need to succeed, especially in an increasingly digital world.
Verizon Small Business Digital Ready: Building the Future of SMBs
Verizon Business is also working toward supporting one million SMBs by 2030 through its Small Business Digital Ready platform. This free online platform offers over 50 courses designed by small business owners for small business owners, covering topics like AI, marketing, financial planning, and social media management.
Available in both English and Spanish, the platform also offers coaching, access to grants, and a range of resources to help SMBs succeed. Over 360,000 small businesses already use Verizon’s Digital Ready platform to improve their digital skills and grow their operations.
Selva Ganesh is the Chief Editor of this Blog. He is a Computer Science Engineer, An experienced Android Developer, Professional Blogger with 8+ years in the field. He completed courses about Google News Initiative. He runs Android Infotech which offers Problem Solving Articles around the globe.
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