Verizon Business State of Small Business Survey finds a surge in SMBs using AI

Rhea-AI Summary

Verizon Business's fifth annual State of Small Business Survey reveals a significant surge in AI adoption among small to midsize businesses (SMBs), with usage doubling from 14% in 2023 to 39% in 2024. Despite economic concerns, SMBs are investing more in technology than in the past three years, particularly in internet upgrades and online operations.

Key findings include:

• 84% of SMBs use Facebook for promotion and customer engagement
• 66% have upgraded their internet bandwidth
• 83% worry about rising inflation's impact on their business
• 59% believe their business will be in a better economic position next year
• 52% of retailers are preparing for an in-store-first holiday season

Verizon Business is offering Small Business Days from October 14-20, providing special deals, free tech checks, and personalized consultations. The company aims to support one million small businesses by 2030 through its Small Business Digital Ready platform, offering free digital skills training.

What you need to know:

• AI usage has more than doubled compared to 2023, with almost 2 in 5 reporting their business currently uses AI
• SMBs are increasingly investing in tech, with decision-makers noting it helps address challenges, save costs and boost revenue
• More SMBs are tapping social media platforms, with 84% of respondents using Facebook for promotion and customer engagement
• From October 14-20, Verizon Business is offering small businesses a free “tech check” to assess their current solutions and help identify what they need to succeed

NEW YORK, Oct. 15, 2024 (GLOBE NEWSWIRE) -- Verizon Business today announced the findings of its fifth annual State of Small Business Survey, conducted by Morning Consult. Despite soaring concerns about their business’ financial security and personal job security, the survey found that small to midsize businesses (SMBs) across the country are investing in technology more now than the past three years, both foundational and emerging. The survey data is based on responses from 621 SMBs.

Key findings:

• AI awareness is driving AI adoption. In the past year, the number of SMBs using AI has doubled (39% of SMBs are using AI in 2024 compared to 14% in 2023), in large part due to the growing familiarity with and accessibility of AI and its business applications. A rise in AI awareness among SMBs has a dual impact: decision-makers are more likely to perceive benefits, but it can also heighten security concerns.

• SMBs are investing in tech more than they have in the past three years. As more SMBs conduct more business online (38% added online/digital operations in the past year), technology investments among SMBs have grown to support that digitalization. Upgrades to internet connection have formed a big portion of those investments, with 66% of respondents upgrading their internet bandwidth.

• Despite economic anxiety, SMBs remain optimistic. The majority of SMBs (83%) are worried about rising inflation and its impact on their business, and about four out of five are worried about the U.S. economy in general. Additionally, concerns about their business’ financial security (62%) and their personal job security (54%) have grown over 10% in the past year. Yet even with broader economic anxiety, SMBs remain optimistic about their near-term prospects. About half of respondents expect their personal (50%) and their business (51%) financial security to improve in the coming months. Additionally, the majority of SMBs (59%) believe their business will be in a better economic position next year.

• Brick-and-mortar makes a comeback for holiday retail. Despite concerns about the holiday season, namely the perceived need to price goods and services to keep up with inflation, most SMBs have a positive association with the holidays. Small business owners see increased demand during Small Business Saturday (59%) and throughout the holiday season (73%). Additionally, more than half of retailers (52%) are preparing for an in-store-first holiday season, representing a 13-point jump from last year.

• Social media is redefining the digitalization of SMBs. Increasingly, SMBs are cultivating their online presence to entice shoppers. A large portion of this shift is taking place on social media platforms. Eighty-four percent (84%) of decision-makers use Facebook to promote products and connect with customers. While Facebook is the leading platform, SMBs are diversifying their approach to social media by leveraging the following platforms for promotion and customer engagement: Instagram (67%), LinkedIn (64%), YouTube (64%), TikTok (57%), and X/formerly Twitter (54%). Nearly four in ten (39%) respondents have social media storefronts.
  

“Small business owners are getting the hang of AI, discovering how it can automate time-consuming tasks and enabling them to focus more on their core business operations,” said Aparna Khurjekar, Chief Revenue Officer, Business Markets and SaaS, Verizon Business. “Despite economic and financial concerns, they’re still investing in faster internet, AI tools and social commerce because they understand how these technologies are crucial for their success. That is where Verizon Business plays a large role, as we are invested in the SMB community and are the partner of choice as they navigate the ever-changing business and consumer landscape.”

Click here to view the complete survey findings on our website.

Verizon Small Business Days (October 14-20)
Small Business Days are returning from October 14-20, offering nationwide support to business customers with technology tips, tools and offers for their mobile communications, connectivity and security needs. During this time, Verizon Business will provide special in-store deals on the latest technology solutions to help SMBs thrive. The promotions for Small Business Days will include:

• Special Savings: Switch and get a free 5G phone on Verizon Business, no trade-in required. Plus get up to $300 off when you bring your number.
• Personalized Consultations: One-on-one sessions with Verizon Business specialists for a complimentary tech check that looks at critical areas of business and provides business owners with advice on tailored solutions for specific business needs.

A full list of special Small Business Days offers and resources for small business owners can be found here.

Verizon Small Business Digital Ready
Verizon has a goal to support one million small businesses by 2030 with free digital skills training to help them succeed. Verizon Small Business Digital Ready is a free online platform tailored for small business owners. The Digital Ready website includes over 50 courses BY small business owners FOR small business owners, such as AI, marketing, financial planning, and social media management – and some courses are offered in Spanish. The platform also offers coaching and access to incentives, such as grants. Over 360,000 small businesses across the US are using Small Business Digital Ready to help their businesses thrive.

Click here for more information on Verizon’s Small Business solutions.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $134.0 billion in 2023. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Media contact:
Tessa Giammona
tessa.giammona@verizon.com 

Carly Sylvester
carly.sylvester@verizon.com 

FAQ

What percentage of SMBs are using AI in 2024 according to Verizon's survey?

According to Verizon's 2024 State of Small Business Survey, 39% of SMBs are using AI, which is more than double the 14% reported in 2023.

How many SMBs are worried about rising inflation's impact on their business?

The survey found that 83% of SMBs are worried about rising inflation and its impact on their business.

What percentage of retailers are preparing for an in-store-first holiday season in 2024?

52% of retailers are preparing for an in-store-first holiday season in 2024, representing a 13-point increase from the previous year.

When is Verizon Business (VZ) offering Small Business Days in 2024?

Verizon Business (VZ) is offering Small Business Days from October 14-20, 2024, providing special deals and support for small business customers.

What is Verizon's goal for supporting small businesses by 2030?

Verizon aims to support one million small businesses by 2030 with free digital skills training through its Small Business Digital Ready platform.