Agencies and tech partners are key to unlocking AI benefits for SMBs through guidance, education, and smarter integration.
As AI rapidly reshapes the business landscape, small and medium-sized businesses (SMBs) are actively experimenting with its potential, yet many remain uncertain about how to implement it effectively. This creates a unique opportunity for service providers and agencies to step in as trusted advisors, offering education, clarity, and strategic guidance.
Studies indicate that AI can help increase productivity of SMBs up to 133%, which is a significant advantage in a landscape where inflation, labor shortages, and rising operational costs are putting pressure on smaller enterprises to do more with less. The benefits of AI for SMBs include cost and time savings, more efficient decision-making, and the ability to stretch limited resources across increasingly complex operations. It helps them compete with larger businesses and innovate in new ways without the need to add specialized staff. Despite these advantages, SMB AI adoption isn’t where it should be.
AI Interest Growing, But Skepticism Remains
According to a recent survey of SMBs, 92% utilize online tools to enhance business operations, particularly in payroll, HR, and finance. This adoption signals a foundational shift toward digital solutions as essential components of modern business strategy. More than half of SMBs (57%) have been offered AI services, and 69% have experimented with AI features, pointing toward a broader evolution in operational intelligence. Financial management, website development, HR, and customer service are among the top areas where AI is being integrated. Additionally, nearly one-third of SMBs now cite the presence of AI features as a key driver in their software purchasing decisions.
Beyond surveys, government data supports the trend of increasing AI interest, its use which rises with the size of a company. A 2024 report by the U.S. Census Bureau found that although large businesses are still leading in AI adoption, very small firms are showing surprising uptake.
Still, adoption is tempered by a mix of enthusiasm and skepticism. When the SMB survey participants were asked similar questions substituting “AI” with “automation,” the responses were notably more favorable, highlighting that while the functionality is welcomed, the branding of “AI” carries confusion or caution. In one study, 86% of SMBs valued automation tools, compared to just 62% for AI tools. While 60% of SMBs acknowledge that AI offers time and cost savings and improves operational effectiveness, many remain hesitant due to concerns about its accuracy, overhype, and reliability. This dichotomy underscores the critical need for clearer communication, education, and practical demonstrations of AI’s business value.
Agencies Must Take the Lead
Despite current hesitancy, many SMBs expect their agencies and software providers to lead by example. A growing majority (70%) feel it’s important that agencies integrate AI into their services, particularly when accompanied by client-facing support such as training, implementation guidance, and strategic AI consulting. This consultative role doesn’t just strengthen client relationships; it also increases service stickiness and overall client satisfaction.
To improve AI adoption and impact, agencies and technology partners must prioritize education and demystification. That begins with communicating benefits in plain language, focusing on practical value (like increased billable time, faster document processing, or improved customer targeting) rather than abstract jargon. Training should be hands-on, outcomes-focused and tailored to industry-specific use cases.
Adjusted Offerings Translate to Better Outcomes
Agencies and service providers should also highlight built-in AI features to help existing clients see immediate, low-risk value from it. Integrating these features into daily operations via familiar systems offers a lower barrier to entry and accelerates adoption without requiring custom builds. For example, SMBs can easily leverage AI features through existing software platforms like CRM, accounting and marketing tools.
Agencies should also broaden their service offerings to include AI onboarding, change management, and security consultation. Customizable AI solutions, such as those that adjust to a business’s size, sector, and structure, are particularly well-suited to SMBs, who often lack internal development resources. Providers must also prioritize cybersecurity and data ethics, as trust is still a major barrier. As reliance on AI and digital tools increases, so too does the need for strong data protection measures and clear user controls.Small businesses are the backbone of the economy, accounting for more than 99% of all U.S. businesses and employing nearly half of the private workforce. The interest and use of AI will only grow as tools become more intelligent and evolve. As agencies and SaaS companies accelerate their own AI roadmaps, they must ensure that SMBs are not left behind. The opportunity is not just to sell AI tools, but to guide, teach and build lasting partnerships that make innovation accessible to businesses of every size.
A quote or advice from the author: “Given the results of all of the surveys we and our partners, like Siinda and Localogy, have conducted recently with SMBs, it’s becoming increasingly clear to us that that these SMBs are turning to agencies for help with AI. This represents a major opportunity. Agencies can embed AI into their solutions; whether in SEO and content, back-office operations, or customer acquisition tools that help SMBs attract and retain more customers. All of this shows, now more than ever, that agencies must adapt and update their offerings to become the AI leaders their clients need them to be.“
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