Can A.I. Answer the Needs of Smaller Businesses? Some Push to Find Out.

🌈 Abstract

The article discusses the growing adoption and impact of artificial intelligence (AI) tools, particularly generative AI like ChatGPT, on businesses of all sizes. It explores the current state of AI adoption, the barriers to wider implementation, and the potential for AI to transform various industries and job functions in the coming years.

🙋 Q&A

[01] Advertisement

1. What is the current state of AI adoption among businesses?

• Only about 5% of companies nationwide are currently using AI technology, according to a survey of businesses from the Census Bureau.
• While the largest companies are finding uses for AI and investing in its development, many smaller companies are just starting to experiment with the technology.
• Economists predict that it will take several years, around 3-5 years, for the full benefits of generative AI to be realized in terms of productivity and economic impact.

2. What are some of the barriers to wider AI adoption?

• Hesitation around using the technology
• Legal and data security concerns
• Regulatory challenges
• Cost of implementation
• Need for more physical and technological infrastructure to support AI, such as computing power, data centers, and software.

3. How are businesses trying to prepare for and leverage AI?

• Some companies are working to ensure their data can be used by AI systems in the future.
• Businesses are exploring ways to use AI to automate tasks, analyze data, and improve operations, such as creating initial drafts of reports or analyzing employee surveys.
• The Nashville Area Chamber of Commerce is actively working to educate and encourage its members, especially small and medium-sized businesses, to explore the potential of AI.

[02] Adoption and Impact of AI

1. In which industries is AI use most prevalent? According to surveys, AI use is greatest in the information and professional services sectors, which include jobs like graphic design, accounting, and legal services - traditionally white-collar roles that have been less threatened by automation.

2. How is AI being used across businesses?

• Marketing is one of the most common uses of AI across all businesses, with 76% of businesses created last year that were using generative AI doing so for marketing purposes.
• Economists believe that in the long run, few occupations will be unaffected by AI in some way, as the technology could alter tasks even in jobs with more social and human interaction, such as administrative work.

3. What evidence suggests that AI adoption is gaining momentum?

• A working paper from the Center for Economic Studies found a "substantial, discrete jump" last year in applications for AI-related businesses, which could fuel the technology's spread.
• The paper also showed that businesses originating from AI-related applications had greater potential for job creation, payroll, and revenue compared to other businesses.

4. What advice is given to existing businesses regarding AI adoption?

• Experts recommend that existing businesses should explore how they can incorporate these AI technologies into their operations, as this is key to wider adoption.
• Businesses need to stay informed and proactive about the changing technological landscape to remain competitive.