We discussed how artificial intelligence (AI) is transforming small businesses in ways we couldn’t have anticipated just a few years ago in my article 2025 AI Predictions for Small Businesses.
AI is helping small businesses streamline operations, enhance customer experiences, and make smarter decisions. It’s also playing an increasingly significant role in the recruiting and hiring process.
I inquired of several industry leaders and experts for their advice on how to create workplaces that are more competitive, innovative, and efficient. AI is adopted by small businesses. The fifth State of Small Business Survey conducted by Verizon reveals a remarkable shift in SMB AI usage. Since 2023, AI adoption has more than doubled, and today nearly 39% of SMBs reportedly leverage AI technologies for their businesses.
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How Do I Change Careers? How to Get Started: 5 Steps A combination of factors drives this rapid uptake. First, there is increased awareness of AI’s potential to automate repetitive tasks, reduce operational bottlenecks, and free up valuable time for strategic initiatives. Second, SMBs now embrace AI-driven solutions to enhance customer interactions—whether through personalized marketing, AI-powered chatbots, or real-time customer support tools. SMBs are able to make better decisions that are based on data thanks to AI’s ability to quickly analyze a large amount of data and provide actionable insights. The adoption of AI is gaining momentum at an alarming rate. As AI tools become more accessible and tailored to SMB needs, more businesses are expected to incorporate these technologies into their day-to-day workflows. This trend underscores a broader shift toward innovation as SMBs recognize that AI isn’t just for large businesses—it’s a vital tool for SMBs to stay competitive in today’s changing marketplace.
—Aparna Khurjekar, Chief Revenue Officer, Business Markets & SaaS, Verizon Business
Generative AI Eases the Hiring Process
Small Businesses Using Generative AI Report Hiring Success and More Satisfaction With Their Employees, a recent Gusto report, revealed the following: Businesses that use generative AI had an easier time hiring: Among businesses that were hiring, the ones using gen AI were 45% more likely to report they could fill open roles and experienced fewer hiring difficulties.
Generative AI helps reduce workloads, particularly for repetitive tasks, allowing employees to focus on more impactful business-building activities. Employees at businesses that use gen AI are much more likely to exceed expectations. Younger generations of business owners are more comfortable with rapidly changing technologies, highlighting a generational shift in how businesses incorporate AI: Millennial and Gen Z business owners are 56% more likely to utilize Gen AI in their operations than Gen X entrepreneurs, and 76% more likely than boomer business owners.
—Nicholas Tremper, Gusto Economist, Gusto
Recruitment, retention, and development are being transformed by AI. Imagine an HR department where hiring decisions are data-driven, retention is second nature, and employee development is personalized and engaging. This isn’t a distant dream—it’s the reality that AI is bringing to HR organizations today. AI transforms HR by automating tasks, enhancing communication, and providing support. Machine learning and predictive analytics can empower HR by delivering insights that help anticipate employee behaviors, such as turnover risk, supporting data-driven strategies to improve retention, streamlining the hiring process, and creating personalized employee experiences.
Generative AI, a game-changer for HR, automates content creation, improves question answering, and summarizes text and content. HR professionals can leverage generative AI tools to create job descriptions, employee communications, and training materials more efficiently, saving significant time.
Businesses should prioritize AI applications with the highest potential when implementing AI in human resources. They should weigh the value against the feasibility of AI applications. This value-feasibility analysis ensures that AI adoption yields measurable gains without undue disruption.
Balancing the benefits and risks of generative AI and adhering to responsible AI practices is essential. This involves ensuring that AI systems are transparent, accountable, and fair. Businesses must implement measures to identify and reduce bias that could lead to unfair treatment of employees. Regular audits and updates of AI systems help maintain their ethical use and reliability.
—Rebekah Roberts, Learning and Development Program Manager, University of Phoenix
A Request for Clarity In 2024, we saw a lot of hype, with the term “AI” applied to tools and technologies that are, in fact, simply rule-based automation or traditional data analytics. Labeling these as AI not only misleads stakeholders but also risks setting unrealistic expectations for what AI can achieve in hiring. True AI systems, especially those based on machine learning, involve adaptive learning from data and require transparency to build trust and ensure ethical use. I’d love to see the language we use about AI become more precise and clear. —Dr. Lindsey Zuloaga, Chief Data Scientist, HireVue
Coding jobs will not be replaced by AI. Artificial intelligence promises a bright future, an exciting prospect that also carries fears of technology replacing humans and eliminating jobs. While this future is further ahead than many claims, two facts remain true: AI and its fast growth present more opportunities than dangers, and we must continue to teach the next generation how to code so they can take advantage of the freedom of creativity that AI provides.
Large-language models (LLMs) are used in generative AI, which will not replace humans. Generative AI can create base code with a simple prompt, but it still needs a software engineer or programmer to check that code, understand what needs to be modified, and then apply it to the proper context and use in a program. Programmers are freed from debugging by AI, allowing us to concentrate on creativity. It lets us reinvent a better wheel—one that more people can access and benefit from. AI provides the starting point, but you are ultimately responsible for the final product. You use your critical thinking skills and creativity to apply the generated results in the way you want and need.
Coding will continue to be a sought-after skill: Instead of going through hours of courses to learn base codes, the next generation of workers faces lower barriers to learning how to use code. Coding is one of the best mediums for combining problem-solving and technology. Teaching our children to code ensures they master these critical skills to become successful workers by being creative, modifying, and problem-solving. And thanks to AI, they won’t have to spend hours starting from scratch.
Coding jobs will evolve as AI improves: Not all coding jobs will be eliminated; they will evolve. Programming positions today require many hours to learn and master coding languages, but this requirement will disappear as AI continues to improve.