Microsoft study: Small businesses intrigued by AI and the opportunities it brings

[News Bot]

Artificial Intelligence (AI) is the defining technology of our time. Are small businesses equipped and willing to adapt to the new ways of work? The data featured in this post is from an internal study, the “Small Business State of Mind” report, commissioned by Microsoft Corporation in May 2023 and conducted by Wakefield Research. The pace of work has increased exponentially, and people are struggling to shoulder the weight of it all. Small businesses, accounting for 99% of all businesses and employing nearly half of the workforce in the U.S. , face heightened pressures due to more limited access to resources—people, revenue, etc.—than neighboring enterprises. With the emergence of AI, small businesses are poised to benefit greatly from next-generation tools and resources designed to help grow and scale businesses. As new technologies introduce previously uncharted solutions, Microsoft is here to help small businesses make the most out of each opportunity. Microsoft Store’s second annual “Small Business State of Mind” report—a survey of 1,000 small business owners with 0-24 employees—digs into the top challenges and priorities of this demographic as well as their perspective around the impact AI may hold on their and others’ small businesses. We found that, while AI curiosity is high, with 79% of small business owners interested in learning more about how to apply to their business, hints of understandable hesitation remain. Read on for additional findings regarding small business’ motivation to implement such technology in their operations and ways Microsoft can support small business success. Key Findings

1. Balancing act: Inflation and data security are the largest, growing pain points for small businesses.
   
2. Entrepreneur to admin: Small business owners are too bogged down with mundane tasks to focus on innovation, though aspirations remain strong.
   
3. AI optimism: AI is seen as a game-changer, potentially providing the level of support small businesses need to grow.
   
4. Closing the AI knowledge gap: Many small business owners still need to become more knowledgeable about AI to fully realize the benefits for their business.
   

https://blogs.windows.com/wp-content/uploads/prod/sites/2/2023/06/Insight-4-Closing-the-AI-Knowledge-Gap-1.png Despite small business owners’ optimism and imagination surrounding the possibilities of AI, many need to become more knowledgeable about AI to fully realize its benefits for their business. In fact, only 10% know how to use AI for their work-related tasks while 67% say they know little to nothing about AI in general. However, small business owners have their reasons for not yet educating themselves or more closely embracing AI for their businesses. While financing or costs (51%) is the most common challenge in incorporating more AI, many are also concerned about challenges that stem from lacking a firm AI understanding, including prioritizing where to start (41%) and skilling/training on the best ways to use it (41%). A recent study from Microsoft [iii] found early adapters of technology are four times more likely to be highly confident in their business as they achieve more progress against business objectives. So, the good news and potential hint for what’s to come: Most small business owners are ready to dip their toe or further immerse themselves in new technologies as nearly 4 in 5 (79%) are interested in learning more about how AI can be used in their business. The bottom line The AI evolution is an incredibly significant technological inflection that will help to define how all businesses work for decades to come. In a time where 34% of small business owners expect their businesses to decline in the next 12 months, up from 28% of those who felt the same last year, we encourage small businesses to explore exciting new capabilities and small business resources to help them grow, cut costs and improve efficiency. We invite small business owners to take advantage of free resources on Microsoft’s Small Business Resource Center as well as explore products and solutions within the latest Surface for Business and Microsoft 365 portfolios to get AI ready. _______________________________________________________________________________________________ Citations U.S. Small Business Administration. (2023). Frequently Asked Questions About Small Business. [ii] Microsoft. (2023). Work Trend Index Annual Report: Will AI Fix Work? [iii] Kevin Peesker. (2022). Microsoft study: Small and medium-sized businesses growing fast by embracing digital technologies.

 

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