Numerous researchers warned us that in the era of late-stage capitalism, small businesses might disappear altogether. They claimed that large corporations would always find ways to make their products cheaper, better, and more attractive. But time has shown that even top economists can be wrong. Small businesses continue to exist and thrive in many industries. It’s all thanks to their flexibility and ability to quickly adapt to new conditions, including the rise of AI.
Today, we’ll explore how exactly small businesses are using artificial intelligence, which was once predicted to be their worst enemy.
Customer Service Automation
Those who got into dropshipping 10–15 years ago may remember a frustrating dilemma. Once your business scaled beyond a certain point, you hit a ceiling due to a lack of time and energy, or had to start hiring people and turn your side gig into a full-scale business, with all its benefits and challenges.
Today, there’s a third option — chatbots. AI-based virtual assistants can take orders, answer common questions, handle complaints, relay messages to manufacturers and distributors, and simultaneously generate large volumes of analytics. At the same time, they preserve the option for human interaction — a specialist can jump in and take over the conversation at any moment.
And this isn’t just about dropshipping or retail. For example, if you’re part of a gambling affiliate program and offering visitors exclusive Wild Fortune bonus codes, AI can provide detailed promotional terms through online chat, messengers, or social media.
Personalized Marketing
When you’re working alone or in a small team, it’s nearly impossible to analyze every customer profile manually. It would either take too much time or require hiring a dedicated analyst with a rather high salary. But artificial intelligence works millions of times faster than even the best specialist, which means it has time for any job, no matter how dull or repetitive.
So, what does this give to small businesses? Let’s count:
- Automatic audience segmentation. AI can work not only with basic demographic or economic indicators but also with behavioral patterns that actually define how customers interact with a business.
- Website personalization. AI can restructure web pages based on user data — altering text blocks, calls to action, recommended products, and even multimedia elements in real time.
- Smart promotional offers. AI can identify the optimal discount rate that appeals to the customer without incurring unnecessary losses for the business. This kind of fine-tuned optimization might save a few dollars per sale, but hundreds of thousands annually.
Content Generation
Content is king. If you want to sell something online, you need to write copy, take photos, and create videos — often in volumes that would have overwhelmed a professional film studio 30–50 years ago. Today, everyone has access to laptops, phone cameras, and other equipment. But despite better product quality, the amount of manual work hasn’t shrunk much.
On the flip side, a lot of those tasks can now be delegated to AI. For example, ChatGPT handles simple product descriptions well, generates unique visuals, and, on premium plans, even creates videos up to 1 minute long. If you need a more professional level, you can turn to advanced tools like Neuron or Jasper for text. Midjourney will deliver high-quality images, and Stable Diffusion will help with video generation.
Advanced Analytics
One of the biggest challenges for small businesses is that their owners and managers usually make decisions based on gut feeling and experience rather than hard data. And this is not just due to tradition — it’s usually because they can’t afford to hire professional analysts, consultants, or crisis managers.
Artificial intelligence doesn’t create a significant budget burden but can deliver comparable results. What’s more, it can detect patterns that the human eye might never see. By combining Big Data and Machine Learning, AI can answer complex questions like “Why don’t customers continue browsing the catalog after their first purchase?” or “What banner message will increase the conversion rate by at least 1.5%?”
Automated Workflows
If any of your employees are performing repetitive or routine tasks, rest assured that AI can handle them too. And we’re not just talking about mindless execution of instructions but real decision-making. Unlike traditional rule-based programs, AI can analyze dozens or even hundreds of variables to solve complex optimization problems.
For instance, AI can record online meetings, create summary protocols, split them into action items, and assign tasks to each participant. It can sort incoming documents, upload them to specific folders and apps. AI can even write personalized emails for outreach campaigns and ads and then decide whether a reply is needed.
And the Best Part?
The best part is that AI remains budget-friendly for small businesses. Subscriptions to top tools range from $5 to $200 per month — far cheaper than hiring and maintaining a new employee. Some tools even offer free versions with basic features that can still significantly benefit your business.
That’s why AI isn’t just convenient — it’s accessible. Today, using artificial intelligence is practically a necessity for small businesses and startups. With these technologies, they can survive in markets dominated by corporate giants — and not just survive but thrive and carve out their stable niches.
