Small businesses are increasingly turning to artificial intelligence (AI) to boost productivity and streamline operations, according to a new study released today, , by Tri Counties Bank. The research, conducted in partnership with an independent firm, reveals that 73% of small businesses are currently utilizing AI in some capacity, with 20% reporting extensive use. Another 14% are planning to adopt AI solutions in the near future.
The study underscores a growing belief in AI’s potential. A significant 83% of small business owners anticipate a positive impact from AI on their businesses, driven by expectations of increased productivity, reduced labor costs and improved efficiency. This adoption isn’t about replacing workers, however. The findings suggest a shift in labor allocation rather than widespread job losses, with the majority of anticipated cost savings – estimated between 6% and 20% – coming from full-time and part-time staff, while management roles are expected to remain largely unaffected. Only 22% of owners foresee no staff reductions with AI implementation.
“AI is reshaping business operations at a rapid pace,” said Rick Smith, President and CEO of Tri Counties Bank. “To better understand its influence on productivity, efficiency, and growth, we partnered with an independent research firm to conduct an in‑depth study on small business use of AI. Our goal in producing studies like What we have is to provide valuable insights and resources that support the continued growth and prosperity of small businesses in our communities.”
AI Adoption: Beyond the Hype
While the hype surrounding AI often focuses on futuristic applications, the current reality for small businesses is grounded in practical, back-office improvements. The report identifies several key areas where AI is already making a tangible difference. Marketing and creative content generation, data entry, and document management are currently the most popular AI-supported functions. This suggests that small businesses are initially leveraging AI to automate repetitive, time-consuming tasks, freeing up employees to focus on more strategic initiatives.
The focus on these areas is logical. Small businesses often operate with limited resources and personnel. Automating tasks like data entry and content creation can significantly reduce workload and improve accuracy, allowing owners and employees to concentrate on core business functions like customer service, product development, and sales. The report highlights a desire to not just reduce costs, but to improve the quality of work performed.
Goals Beyond Cost Savings
The study reveals that cost reduction, while important, isn’t the sole driver of AI adoption. Small businesses are also actively pursuing AI to increase productivity, improve accuracy, and enhance profitability. The ability to generate reports and written materials using AI is also a significant draw, particularly for businesses that lack dedicated administrative staff or struggle with content creation.
This broader range of goals suggests that small businesses are viewing AI as a tool for overall business improvement, not simply a cost-cutting measure. The emphasis on accuracy, for example, indicates a desire to minimize errors and improve data quality, which can have a significant impact on decision-making and customer satisfaction. The focus on profitability suggests that businesses are looking for AI to drive revenue growth, not just reduce expenses.
Tri Counties Bank and the Small Business Landscape
Tri Counties Bank, a California-based financial institution with approximately $10 billion in assets, has positioned itself as a resource for small businesses navigating the evolving technological landscape. Established in 1975, the bank serves individuals and businesses throughout California with over 75 locations and a commitment to local expertise and community engagement. The release of this AI study is part of a broader effort to provide valuable insights and support to its small business clients.
The bank’s focus on small businesses is particularly relevant in the context of AI adoption. Small businesses often lack the resources and expertise to evaluate and implement AI solutions on their own. By providing research and guidance, Tri Counties Bank aims to empower its clients to leverage AI effectively and remain competitive in a rapidly changing market. The bank’s commitment to local decision-making and personalized service further reinforces its position as a trusted partner for small businesses.
Looking Ahead: Continued Growth and Integration
The study’s findings suggest that AI adoption among small businesses is still in its early stages, but the momentum is clearly building. With a significant percentage of businesses already using AI and a substantial number planning to adopt it in the future, the trend is expected to continue. As AI technology evolves and becomes more accessible, we can anticipate even wider adoption and more sophisticated applications.
The full report, available for download on the Tri Counties Bank website, provides a more detailed analysis of the findings and offers valuable insights for small business owners looking to explore the potential of AI. The report can be found at https://www.tcbk.com/application/files/8617/6849/9608/Small-Businesses-and-AI-Report.pdf.
