Why U.S. small businesses will lead AI investments in 2024

According to the U.S. Chamber of Commerce, small businesses drive the U.S. economy. Small businesses employ almost half of America’s total workforce and account for 43.5% of America’s GDP. They are a vital part of our economic ecosystem, with large and small businesses becoming vendors, employees, partners, and customers of each other. Key data for U.S. small businesses in 2023 include:

Also: AI adoption and innovation will add trillions of dollars in economic value.

• 99.9% of businesses in the United States are small businesses
• There are 33.2 million small businesses in the United States
• 62 million Americans (46%) are employed by small businesses
• Over the past 20 years, small businesses have accounted for approximately 40% of U.S. GDP, representing trillions of dollars of economic activity.
• 5.5 million small business jobs were created after the pandemic recession.

To better understand the outlook for small businesses in 2024, Slack surveyed 2,000 small business owners (half of them in tech or retail) and found that 40% expect to We found out that they believe that 2019 will be a make-or-break year for their business. Here are the 10 key findings from the 2024 Small Business Survey.

1. 40% of small business owners believe 2024 will be a make-or-break year for their business.
2. 49% of small business owners report that their business performed slightly or significantly better than expected in 2023.
3. 32% of small business owners are worried that their business won’t survive until the end of 2024.
4. Small business owners are concerned about inflation/economic conditions (47%), the need to increase prices (32%), increased competition (24%), the need to update technology without a budget (16%), and outdated technology. technology ( 14%).
5. 74% of small business owners plan to increase their marketing efforts to attract new customers (51%), develop an emergency fund (45%), and explore new technology to improve productivity and efficiency (43%) is focused on.
6. By the end of 2023, 47% of small business owners will have acquired new customers, 30% will have increased profits, and 26% will have adopted new technology.
7. In 2024, 60% of small business owners expect to increase their budgets.
8. 50% of small business owners plan to allocate budget to technology and infrastructure.
9. When asked what these new technologies are, small business owners are more likely to have introduced technologies for AI (50%), productivity or collaboration (41%), or communication (34%). It was the highest.
10. More than a third (35%) of small business owners are excited to introduce new or updated technology to their business in 2024. Of those, 49% plan to implement new productivity, collaboration, and other software tools. (53%) — Reflecting a clear tendency to maximize efficiency with limited resources.

As I’ve written before, this problem won’t go away anytime soon. Therefore, business leaders must develop their investment thesis with a focus on improving the customer experience, creating unique value differentiation, and leveraging technology that can deliver value at the speed needed.

When it comes to investing in technology, it’s no surprise that small business owners are turning to AI to improve productivity and communication. It’s also important to remember that every AI project begins as a data project. Based on insights from more than 10,000 analytics, IT, and business leaders, the study reveals the need for a strong data foundation to accelerate AI adoption and benefits.

Also: To compete in an AI-powered economy, companies need new operating models

AI adoption is exploding, increasing the need for a consistent IT strategy. Small businesses have an advantage because they have the ability to be agile and future-proof while minimizing technical debt. However, the survey also found that 90% of IT leaders say it is difficult to integrate AI with other systems due to data silos and legacy systems.

Small businesses revitalize the economy. And today’s knowledge-sharing, hyper-connected, digital-first economy is powered by AI. The small businesses that will compete and win in 2024 and the next decade will be those that make the most of data, AI, automation, and trust.