Small and medium-sized businesses (SMBs) are increasingly turning to technological innovations to carve out a competitive edge in the digital economy, as detailed in Verizon Business's sixth annual State of Small Business Survey. Conducted by Morning Consult, the survey gathered insights from 600 U.S. businesses, shedding light on a significant shift towards digital adoption across various technological fronts.
Artificial intelligence (AI) stands out as a pivotal technology for SMBs, with 38% of businesses now integrating AI into their operations. The application of AI spans several areas, including marketing and social media, where 28% of businesses use it for content creation and engagement. Additionally, 24% employ AI for written communications, and nearly a quarter utilize AI-powered digital assistants to enhance customer service experiences.
Social media continues to be a cornerstone of business strategy, with Facebook leading as the preferred platform. An overwhelming 76% of SMBs acknowledge the positive impact of social media on their business, while 58% have established a presence on TikTok. The past year has seen more than three in five decision-makers either launching or ramping up investments in content creation, underscoring the growing importance of digital engagement.
Cybersecurity has emerged as a critical concern, with 52% of SMBs recognizing that business growth exposes them to greater risks of cyberattacks. In response, 47% of the surveyed businesses have invested in technologies to bolster their digital security, highlighting the imperative to safeguard digital assets in an increasingly online world.
AI's influence extends into workforce management, with 19% of SMBs using AI for recruitment and talent sourcing. A significant 56% believe AI can mitigate challenges associated with reduced or frozen headcounts, and 53% view AI as a valuable tool for staff retention. Despite these technological advancements, traditional views on workforce management persist, with over two-thirds of decision-makers still valuing in-person employee presence for business functionality.
As technology becomes more accessible, SMBs are not just adapting to the digital transformation but are actively shaping their competitive strategies through the strategic adoption of AI, enhanced cybersecurity measures, and the effective use of social media platforms. This proactive approach positions them at the forefront of the digital economy, ready to navigate the challenges and opportunities it presents.
