Small business owners’ confidence in using artificial intelligence (AI) is running significantly ahead of the way businesses are utilising AI tools, new research reveals.
A study of 1,000 small firms by the Small Business Institute and Alibaba.com found 70% are somewhat or very confident using generative AI, but only 48% are using it regularly. The report described it as an “AI productivity gap”.
Among those adopting AI, 74% use it for content creation and marketing, while only a third apply it to data analysis or reporting, and just 5% use it for supply chain management, something that agentic AI tools can help with.
The report said that “while generative AI has become part of everyday working life for many entrepreneurs, businesses are yet to extend that use into AI that can tackle more complex, time-consuming and high-value tasks that come with running a business”.
Michelle Ovens, founder of Small Business Britain, commented:
“We know small business owners wear many different hats when running their businesses, so it’s hugely encouraging to see growing confidence in AI as a critical tool. However, the research also makes clear AI’s – and particularly agentic AI’s – untapped potential.
“There is a real opportunity for technology to completely revolutionise how small business owners manage their business, potentially freeing up more time to focus on the areas that can really take their business to the next level.”