Understanding the slow adoption of AI by Small and Medium-sized Businesses in Marketing
Trends in the Adoption of AI by SMBs
A recent study has revealed interesting findings regarding the slow acceptance and utilization of AI technology among small and medium-sized businesses (SMBs). According to the survey, a staggering 74% of SMBs are yet to use AI, however, 44% among them have expressed hopes of incorporating it within the scope of the next year.
Applicability and Usability of AI for SMBs
The hesitance to embrace AI within the marketing sphere is largely seen as a result of being overwhelmed by the technology. Yet for SMBs that can unearth the potential of AI tools and harness its power, the benefits include not only efficiency but also considerable cost savings. Nevertheless, it’s worth noting that the process is not flawless, as SMBs typically are time-strapped and the learning curve associated with AI is undoubtedly steep.
Breakdown of AI usage by SMBs according to size:
1. SMBs with over 50 employees have seen higher AI usage rates (40%).
2. For SMBs with 10-49 employees, approximately 30% have used AI.
3. For the smallest size class of SMBs, having 1-9 employees, AI usage drops significantly to 12%.
Marketing Applications of AI in SMBs
For the 26% of SMBs that have adopted AI, the areas where the technology is used most prevalently in marketing are:
1. 52% utilize it for social media.
2. 44% use it for content creation including writing and images.
3. Email campaigns have seen relatively lower usage at 41%.
Advantages of AI Incorporation in SMBs
The benefits SMBs reap from using AI are impressive. An overwhelming 91% of SMBs that employ AI technology stated it has served in their business successfully. A significant 72% of marketers mentioned that AI assisted them in saving over 25 minutes per week.
Furthermore, SMBs predict financial savings as a result of AI utilization in marketing, with an estimated 72% envisioning savings of up to $5,000 per year.
Hindrances to AI Introduction
Despite the noted benefits, SMBs express a common hurdle in the path of AI implementation – lack of sufficient training and education. This barrier is particularly evident among SMBs:
1. 80% of SMBs have only beginner- or intermediate-level understanding of using AI for marketing.
2. Factors such as data security, costs, and time constraints form the greatest obstacles in using AI.
About the Study
This data is procured by Ascend2 in association with Constant Contact, involving a survey of 486 small business owners and decision making personnel who are affiliated with U.S. organizations functioning in both B2B and B2C sectors.
Frequently Asked Questions
1. What percentage of small and medium-sized businesses have yet to adopt AI for marketing?
According to a recent survey, 74% of small and medium-sized businesses have yet to adopt AI for their marketing needs.
2. How do businesses utilize AI technology in their marketing efforts?
Among those businesses that have adopted AI, 52% use it for social media, 44% use it for content creation, and 41% use it for email campaign management.
3. What are the main barriers preventing SMBs from adopting AI?
The major barriers to adoption include lack of sufficient training and understanding of AI technology, concerns over data security, and the costs associated with its implementation and usage.