Artificial intelligence is no longer a tool reserved for big corporations. Small businesses are rapidly adopting AI-driven solutions to streamline operations, save time, and cut costs. A 2024 survey by Goldman Sachs 10,000 Small Businesses found that 69% of small businesses now integrate AI into their workflows, a significant jump from 56% in 2023. From automating administrative tasks to optimizing inventory management, AI is changing how small companies operate.
AI as a Time-Saving and Cost-Effective Tool
Small business owners often juggle multiple responsibilities, making time management crucial. AI-powered tools help by handling repetitive tasks, reducing errors, and improving efficiency.
1. Automation in IT and Marketing – Many IT companies now rely on AI to assist with coding, while marketing agencies use AI to generate content, optimize advertising campaigns, and analyze consumer behavior.
2. HR and Recruitment – AI simplifies the hiring process by scanning resumes and identifying the best candidates, allowing businesses to focus on interviews and cultural fit.
3. Financial Management – AI tools can detect duplicate charges, track expenses, and assist with bookkeeping, reducing the risk of financial discrepancies.
Instagram | fortunempw | AI empowers small businesses by freeing up time and cutting costs, as stated by Goldman Sachs’ Asahi Pompey.
According to Asahi Pompey, Global Head of Corporate Engagement at Goldman Sachs, AI provides two essential advantages: saving time and reducing costs. “For small business owners, every minute counts. AI takes over routine tasks, allowing them to focus on business growth. And since many owners pay themselves last, saving money through AI solutions is a major benefit,” Pompey explained.
AI-Powered Inventory Management
One of the more innovative uses of AI in small businesses is in retail and inventory management. Andy Downard, CEO of a thrift store startup in Denver, has developed an AI-powered scanner that significantly cuts down the time required to tag inventory. What used to take 20 minutes per item now takes just two.
Sorting and pricing second-hand clothing is a time-consuming task, but AI simplifies the process. “AI helps us categorize items by brand, size, and color, then compares market prices to determine a competitive selling price,” Downard shared. This automated approach ensures fair pricing and speeds up the inventory process.
The scanner reads item details in one scan, determines its value based on current market trends, and prints an accurate price tag. Employees can be trained to use this system in minutes, increasing overall productivity.
Efficiency Boost in Thrift Stores and Retail
Freepik | AI-driven efficiency boosts enable higher wages and job satisfaction in retail.
Implementing AI-driven solutions in retail settings has already shown promising results. Small businesses using this technology see:
1. Increased Productivity – Traditional thrift stores process 40 to 70 items per hour, while AI-assisted stores can exceed 100.
2. Better Employee Compensation – With faster workflow efficiency, businesses can afford to pay employees higher wages, boosting job satisfaction.
3. Consistent and Accurate Pricing – AI removes the guesswork from pricing, ensuring fairness and improving customer trust.
“Instead of spending hours pricing each item manually, AI does it in seconds. This lets us move inventory faster and focus on customer experience,” Downard added.
The Future of AI in Small Businesses
As AI continues to evolve, small businesses are finding new ways to integrate these tools into their operations. From automating customer service with AI chatbots to using machine learning for predictive analytics, the potential for growth is immense.
For many small business owners, AI is not about replacing human workers but enhancing efficiency, reducing costs, and allowing them to scale operations effectively. With more companies embracing AI, the landscape of small business management is undergoing a transformation—one that prioritizes speed, accuracy, and smart decision-making.
