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Small business owners ended 2024 wondering if their tech stack could handle not only the holiday rush, but the challenges of 2025. While 40% of SMBs admit to experiencing “AI FOMO,” according to a survey from my company Builder.ai, they’re hitting real roadblocks: budget constraints, integration headaches, and that nagging question, “Is this the right time to jump in?”
Nearly a decade ago, software development was an unplanned path to my professional journey and not something I expected. I co-founded my own photography company and found myself frustrated by the software developers who were supporting us at the time. This sparked a flurry of ideas around the question if professional engineers are struggling, how can entrepreneurs or startups create their own apps with little or no technology experience?
I can imagine how difficult it is for small businesses to cut through the noise and stand out during the busiest shopping period of the year. The pressure to effectively promote your business while juggling sales, marketing and customer service was overwhelming.
Think of AI as the perfect holiday gift – initially daunting to choose, but ultimately transformative. From handling routine customer queries to simplifying inventory management, AI is like having a hard-working assistant who never calls for overtime.
But here’s the thing: Choosing the right AI tool doesn’t have to feel like blindly picking from a gift catalog. The key is finding a solution that plays well with your existing technology and feels less like a disruption and more like a natural extension of your business. Think of it as adding a new team member that fits seamlessly into your existing crew.
Related: Almost half of the VC funding raised last year went to startups in one category
Applying AI during uncertain times
In today’s uncertain economic climate, having AI in your corner is like having a business stabilizer. It’s not just about automating tasks—it’s about making smarter, data-backed decisions and a reality check: resistance vs. progress. Small business owners face unique challenges such as the right support, education and resources to implement AI solutions throughout their business. In my experience, I’ve seen one of the biggest issues in the tech industry – the overwhelming barriers to entry for entrepreneurs, especially those operating a small business.
Let’s address the elephant in the room: AI isn’t exactly the new kid on the block, but its recent explosive growth has many small business owners feeling uneasy. The concerns are real: 29% worry about technology failures, 28% about employee disengagement and 27% about costs burning a hole in their pocket, according to the Builder.ai survey. Add to that another 30% who are looking at the AI regulatory landscape with raised eyebrows.
While these fears are valid, I have learned strategies to navigate these concerns and have discovered in my journey that it is not the technology that is the barrier for users, it is the need to understand and deploy it to make it accessible and integrated. throughout a business. . It is essential for small businesses to stay competitive and not fall behind in technological advancements in their respective industries. While there are concerns and external factors to consider, small businesses should embrace AI as soon as possible to improve their business model and ROI as we head into the new year.
AI advantage: More than just a seasonal helper
But here’s an interesting twist – despite these concerns, 54% of small businesses are planning to increase their AI investments this year. Why? Because smart business owners know that staying competitive means embracing innovation, even when it feels uncomfortable.
Beyond the chaos of the holidays, AI brings benefits year-round. Imagine this: smoother application development, better time management, and communication that flows effortlessly both inside and outside of your business. The best part? You are always in the driver’s seat, with transparent processes that keep you in control. AI can be the support you need near the end of the year and can work to improve processes and make your overall workflow more efficient.
When looking for an AI tool, look for one that acts as your team’s partner and easily integrates with existing technology and infrastructure already in place. It should be straightforward, completely transparent and give small business owners full control of the project they are working on. During uncertain times, AI and software solutions can provide the structure and support to keep small businesses on track despite the storm.
Related: These days, everything is ‘powered by AI.’ Here’s how to tell hype from real innovation.
The final take
The holidays remind us that sometimes the best gifts are the ones that seem a little intimidating at first. In my career, I’ve learned firsthand that technology should empower entrepreneurs and make them feel like superheroes, not hinder them. AI can feel like that complex gadget that you’re reluctant to take out of the box, but once you do, you’ll wonder how you ever got by without it. And unlike those holiday sweaters that end up in the return pile, this is an investment that continues to pay off.
For small businesses jumping headfirst into 2025, the question is not whether to adopt AI, but how to do it smartly. With the right approach and tools, AI can be the gift your business didn’t know it needed — no gift receipt required.
