Small Businesses Adopting AI Expect to Thrive Against Competitors

Rhea-AI Summary

GoDaddy's new study reveals that 75% of entrepreneurs believe generative AI gives them a competitive edge. The research shows a significant increase in GenAI usage among small business owners, with 73% trying the technology and 26% using it for business purposes. Entrepreneurs are optimistic about GenAI's potential to enhance their businesses and compete with larger corporations.

Insights

Market Research Analyst

The survey conducted by GoDaddy indicates a notable trend in the small business landscape, with a significant number of entrepreneurs acknowledging the benefits of generative AI (GenAI). The adoption rate, which has nearly doubled in a short timeframe, suggests a shift towards more technologically integrated business models. This trend is likely to influence market dynamics, as GenAI can enhance productivity, creativity and efficiency, potentially leading to cost savings and revenue growth for small businesses. Furthermore, the ability of GenAI to level the playing field against larger competitors could result in increased market competition and innovation.

From a market research perspective, the high satisfaction rate with GenAI tools underscores their perceived reliability and utility in real-world business applications. As small businesses continue to experiment with GenAI, we may see an evolution of business strategies and a redefinition of small business capabilities. This could attract investor interest in companies providing GenAI solutions or in small businesses that effectively leverage this technology to disrupt their respective industries.

Technology Adoption Expert

The rapid increase in GenAI adoption among small business owners reflects a broader trend in technology diffusion. Small businesses are typically resource-constrained and may not have the capacity to invest in emerging technologies at the same rate as larger enterprises. However, the data suggests that GenAI's accessibility and ease of use are catalyzing its uptake among these smaller entities. This democratization of advanced technology could spur innovation at a grassroots level, potentially reshaping entire sectors as new products and services emerge.

It's important to consider the long-term implications of this shift. As small businesses become more adept at using GenAI, they may begin to demand more sophisticated features, leading to a cycle of continuous improvement and innovation within the GenAI space. This, in turn, could influence the strategies of technology providers, who may prioritize the development of scalable GenAI solutions that cater to this growing segment of the market.

Small Business Strategist

The survey results highlight a strategic pivot for small businesses, with a clear majority recognizing the value of GenAI in gaining a competitive edge. The increased use of GenAI for sales enhancement is particularly noteworthy, as it suggests that small businesses are not just automating content creation but are also finding innovative ways to apply AI in customer-facing and revenue-generating functions.

For entrepreneurs, the integration of GenAI could translate into more personalized customer experiences and improved decision-making through data analysis. However, there are potential drawbacks, such as the risk of over-reliance on technology and the need to maintain a human touch in customer interactions. As small businesses continue to embrace GenAI, they must balance automation with authentic engagement to maintain customer trust and loyalty.

New study from GoDaddy finds 75% of entrepreneurs believe generative AI gives them an edge

TEMPE, AZ / ACCESSWIRE / April 3, 2024 / GoDaddy
Originally published on GoDaddy Newsroom

New research from GoDaddy (NYSE:GDDY) shows that entrepreneurs are quickly embracing generative AI (GenAI) and increasingly using the rapidly evolving technology to run and grow their small businesses.

GoDaddy's January survey of over 500 U.S. small business owners found that they expect GenAI to give them a competitive edge over other small or similar-sized businesses (75%) and anticipate it will also allow them to better compete with larger businesses (68%).

GenAI usage among entrepreneurs is on the rise, with 73% of survey respondents indicating they have tried the technology, and 26% of those using it for business purposes. This is a drastic increase from GoDaddy's inaugural survey of U.S. small businesses on GenAI*, published in May 2023, which revealed only 38% of respondents had used GenAI at that time. Of those, only 11% had tried applying GenAI to their business.

In GoDaddy's 2024 survey, small business operators' satisfaction and consistency using GenAI for their business remained consistently high (78%) - the same as in 2023 (78%).

Small businesses are also experimenting with how they're using GenAI tools. Outside of content creation or marketing, entrepreneurs are increasingly leveraging it to help boost sales for their business (44% in 2024 vs 22% in 2023).

"We're at the beginning of the AI revolution and small businesses are already taking advantage of the technology, which is really unprecedented," said Amy Jennette, senior director of marketing at GoDaddy. "Small businesses usually lag big business in getting the most out of cutting-edge tech, but with easy-to-use GenAI and solutions like GoDaddy Airo, the playing field is finally leveling out."

Much has been written about concerns around AI technology, however GoDaddy's survey found that apprehension is low among small business owners. Only 1 in 10 respondents believed GenAI could do their job better than them. Similarly, 89% said they are not worried about negative consequences associated with using AI technology for their business - a rise from May 2023 (83%).

Looking ahead, entrepreneurs are feeling optimistic about the future, with 47% sharing enthusiasm about their business overall.

"Small business owners expect to save more than $4,000 and 300 hours of work this year using generative AI," Jennette said. "The best part about this is we're at the tip of the iceberg when it comes to what's possible with GenAI."

On Feb. 26, GoDaddy unveiled its AI-powered solution that makes leveraging the power of AI easy for anyone. In mere minutes, GoDaddy Airo™ can help entrepreneurs start a business or take their existing one to the next level, with no tech skills required, by automatically generating a logo, website, email, payment capabilities, social posts and more.

To learn more about GoDaddy Airo™, visit www.godaddy.com/airo.

To explore the survey results, visit www.godaddy.com/ventureforward/spring-2024-generative-ai-survey-results.

About GoDaddy
GoDaddy helps millions of entrepreneurs globally start, grow and scale their businesses. People come to GoDaddy to name their idea, build a professional website, attract customers, sell their products and services and accept payments online and in-person. GoDaddy's easy-to-use tools help small business owners manage everything in one place and its expert guides are available to provide assistance 24/7. To learn more about the company, visit www.GoDaddy.com.

*January 2024 (Total Surveyed: 504) and April 2023 (Total Surveyed: 1,003)

View additional multimedia and more ESG storytelling from GoDaddy on 3blmedia.com.

Contact Info:
Spokesperson: GoDaddy
Website: https://www.3blmedia.com/profiles/godaddy
Email: info@3blmedia.com

SOURCE: GoDaddy

View the original press release on accesswire.com

FAQ

What percentage of entrepreneurs believe generative AI gives them a competitive edge according to GoDaddy's study?

75% of entrepreneurs believe generative AI gives them an edge.

How many U.S. small business owners were surveyed by GoDaddy?

GoDaddy's January survey included over 500 U.S. small business owners.

What percentage of survey respondents have tried GenAI for business purposes?

26% of survey respondents have used GenAI for business purposes.

What was the increase in GenAI usage among small business owners compared to GoDaddy's survey in May 2023?

The recent survey showed a drastic increase in GenAI usage compared to the May 2023 survey, where only 38% of respondents had used GenAI.

What is the satisfaction rate of small business operators using GenAI for their business?

Small business operators' satisfaction and consistency using GenAI for their business remained consistently high at 78%.

How are small businesses utilizing GenAI beyond content creation and marketing?

Small businesses are increasingly using GenAI to boost sales for their business, with 44% utilizing it in 2024 compared to 22% in 2023.