How to actually use AI in a small business: 10 lessons from the trenches

"CNBC recently reported on conflicting numbers about AI adoption and productivity among small businesses. Productivity among the S&P 500 rose 5.5% since the introduction of ChatGPT in 2022, according to a Wells Fargo analysis. Conversely, the same report says productivity has declined a whopping 12.3% for the Russell 2000, Wells Fargo's name for the bottom 2,000 stocks in its tracking data."

"Your business isn't a statistic, and neither is mine. As I wrote in the companion piece to this article on the 21 ways my business has benefited from AI, it is absolutely possible to benefit from AI use. However, to do so, you must completely disregard the hype, focus on the bottom-line results, and take it slow. In this article, I'm going to share with you ten key tips that will help you use AI effectively to boost your productivity and your bottom line."

"Invest in AI if you see a way it will bottom-line benefit your company. You wouldn't spend on a piece of equipment just because it's cool. You'd buy it because it opens a new business opportunity, helps you improve productivity, or helps you reduce costs. AI should be treated exactly the same way. If you don't know how AI will help, don't spend a ton on AI. In fact, don't spend anything until you do know how it will help."

Conflicting statistics show AI adoption and productivity vary widely across companies, with large-cap productivity rising while smaller-cap productivity fell. QuickBooks reports many small businesses integrated AI, but impact on productivity remains unclear. Businesses should prioritize measurable bottom-line benefits before investing in AI. Testing free AI chatbots allows assessment of capability without cost. The strongest free chatbots — ChatGPT, Copilot, Grok, and Gemini — have improved substantially over two years. AI investments should be evaluated like equipment purchases: buy only when they open opportunities, raise productivity, or reduce costs. Slow, measured adoption and ROI focus increase chances of success.

Read at ZDNET