In today's unstable economic climate, companies, particularly small businesses, face increased challenges as they strive to outperform their competition. Small businesses are continually seeking to enhance their connectivity to address their operational requirements, as revealed in a recent survey by Verizon Business. They are also actively exploring the potential of emerging technologies like Artificial Intelligence (AI). However, as their reliance on technology increases, they increasingly worry about cybersecurity issues.
“The fact that nearly half of small and midsize businesses are either using or are aware of the AI-specific use cases that can drive their companies forward highlights what we hear from our customers every day regarding their desire to stay ahead of the pace of change to drive their business forward,” said Aparna Khurjekar, Chief Revenue Officer, Business Markets and SaaS, at Verizon Business.
Additionally, another survey by Capterra showed that with the holiday season approaching, small businesses are gearing up with new AI-powered strategies to boost profit. The findings reveal that 70% of small to midsize retailers plan to provide more holiday promotions this year.
Increasing interest in AI
Over a third (35%) of small and medium-sized businesses believe that AI can help mitigate the challenges posed by labor shortages.
Furthermore, 46% of these businesses aim to use AI to streamline order processing, enabling business owners to dedicate more time to core activities and customer interactions. The same percentage of businesses (46%) also see the potential of AI in optimizing inventory management and supply chain operations.
Apprehensions regarding AI
Despite the growing interest in AI solutions, many small and medium-sized businesses remain cautious about its implementation. Almost half (45%) express concerns about integrating AI solutions, and 43% worry that AI tools might expose them to cybersecurity risks.
Demand for enhanced internet bandwidth
In 2020, 27% of small and medium-sized businesses upgraded their internet connection bandwidth, largely driven by the necessity to operate digitally during the economic shutdown.
This trend continued even after the economy reopened, with 52% upgrading in 2021, 51% in 2022, and 53% in 2023. This underscores the growing reliance on digital operations for businesses of all sizes.
Is cybersecurity up-to-date?
Many small and medium-sized businesses are not proportionately investing in cybersecurity compared to their technology and bandwidth upgrades.
Only one in three have implemented new security systems and technology, and nearly half (45%) do not provide cybersecurity training to their employees.
Inflation is still the biggest concern
As many as 81% of respondents express concerns about the impact of inflation on their businesses, with 80% reporting increased costs in the past year. Furthermore, 59% have either raised or plan to raise the prices of their goods and services, while 57% have reduced or plan to reduce spending on non-essential items and activities. Despite these concerns, most business owners (63%) anticipate increased demand during the upcoming holiday season.
