Small Business Owners Embrace AI but Still Crave Human Insight and Training
As artificial intelligence moves from buzzword to business backbone, small business owners across the U.S. are embracing the technology—but not without caution. A recent report by the Initiative for a Competitive Inner City (ICIC), supported by Intuit, shows that nearly 89% of small business owners say someone at their company is using AI tools. Yet, despite this high level of adoption, barriers like lack of knowledge, rapid technological changes, and data privacy concerns are slowing deeper integration.
AI has long been viewed as the domain of big corporations with technical teams and million-dollar budgets. But today’s entrepreneurs—from graphic designers to boutique retailers—are discovering how even basic AI applications can help them compete with much larger firms.
The most common uses? Streamlining routine operations. According to the ICIC report, small business owners are using AI primarily for data analysis (26.8%), writing marketing materials (25.2%), drafting communications (23.4%), and summarizing content (22.7%). These tools are proving especially useful for time-strapped business owners, many of whom wear multiple hats.
Notably, the implementation of AI has led to tangible improvements in productivity and morale: 62% of AI users reported enhanced employee output, while 63% noticed an increase in job satisfaction.
Yet for all the benefits, many small business owners remain unsure how to maximize AI’s potential. The biggest reason cited for not using AI? A lack of understanding—71.9% of non-users said they simply didn’t know enough about available tools. Other concerns included the time investment required to implement AI and the complexity of AI systems themselves.
That hesitation, says George Kailas, CEO of Prospero.AI, often stems from a cultural misconception of what AI is meant to do. “There’s this fantasy being pushed that small businesses need to automate everything to stay competitive,” says Kailas. “But if you’re a coffee shop or a local contractor, automating your customer interaction doesn’t make you more efficient—it makes you forgettable.”
Kailas advocates for a practical approach: using AI to handle backend operations so that business owners can focus on what matters most—relationships. “The real edge of a small business is trust and reputation. AI can’t replicate that. But it can help free up your time so you can double down on the things that actually make people come back.”
That sentiment echoes one of the report’s key takeaways: small business owners want to know how AI can help them grow without compromising their values. Forty-two percent said their top educational need was understanding how AI can help make their business more profitable. Other popular requests included data privacy training and guidance on how to write effective prompts for AI tools.
The ICIC study also revealed important demographic gaps. Male business owners reported greater comfort with AI compared to their female and nonbinary peers. Minority business owners were twice as likely to report discomfort with AI tools as non-minority owners. These disparities suggest that inclusion and accessibility must be part of any strategy to promote responsible AI adoption.
To bridge these gaps, Intuit and ICIC have announced a six-city “More with AI Tour” for 2025. These free, half-day events will offer hands-on experience with AI tools, including workshops on financial forecasting, marketing automation, and customer engagement strategies. The goal is to equip entrepreneurs not just with tools, but with the confidence to use them.
Importantly, small business owners themselves are demanding diverse educational formats. While online videos and social media remain popular, many survey respondents said they’d benefit most from in-person training and conversations with real experts. For many, it’s not just about understanding the mechanics of AI—it’s about knowing when and how to use it responsibly.
As AI continues to evolve, one thing is clear: small businesses are ready to embrace the future—but they don’t want to lose their identity in the process. As Kailas puts it, “AI should be your assistant, not your brand.” The businesses that succeed won’t be the ones that automate everything—they’ll be the ones that know where the human touch still matters most.
