Small businesses who use AI daily were twice as likely to see a revenue increase, despite the readiness gap
New Xero research has revealed a critical AI paradox for U.S. small businesses: while regular AI users are more likely to see revenue growth, surprisingly, more than half (53%) say their business wouldn’t be impacted if AI tools disappeared tomorrow.
Xero’s ‘AI for small business: Bridging the gap from inertia to action’ white paper, which surveyed 1,100 small businesses globally, found those that have adopted AI are seeing improved business performance; in fact, owners who use AI daily were twice as likely to see a revenue increase compared to those who never use it.
This contradiction prompts the question: how can AI, which has a direct impact on revenue, not impact a small business if it no longer existed?
Andrew Kanzer, Managing Director of North America at Xero, noted that the readiness gap is both a cause and effect of many small businesses not truly realizing the benefits of AI, and incorporating its multiple facets into their business.
“AI has the opportunity to transform every aspect of a small business, from content and marketing, to daily operations, to payment processing, to hiring,” Kanzer said. “But there is a difference between using it on an ad hoc basis, and fully ingratiating it into your backend. Though many small business owners are optimistic, there are more who are abundantly cautious – and that is what’s creating the readiness gap.”
The report found that the readiness gap is driven largely by concerns related to:
- Data privacy and security, with 36% of respondents noting this concern
- Accuracy and reliability of AI output, with 29% of respondents noting this concern
“To de-risk adoption and increase trust, small businesses owners should shift their focus from the tool to the vendor, and ensure they’re establishing relationships with enterprise systems that value security as it relates to both customer intel and data,” said Kanzer. “This is the first step in ensuring you’re well on your way to a long-lasting, fruitful partnership that further solidifies your AI tech stack and foundation.”
The ‘AI for small business: Bridging the gap from inertia to action’ white paper outlines a three-pillar approach for small businesses to bridge the gap, focusing on adopting a new mindset, taking strategic action and de-risking the environment through trusted partners.
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