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Small business owners closed out 2024 wondering if their tech stack could handle not just the holiday rush, but the challenges of 2025. While 40% of SMBs admit to experiencing “AI FOMO,” according to a survey by 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 route for my professional journey and not something that I anticipated. I was co-founding my photography company and found myself frustrated at software developers who were supporting us at that time. This sparked a slew of ideas around the question of if professional engineers are struggling, how could entrepreneurs or startups create their own apps with little to no technology experience?
I can imagine how hard it is for small businesses to cut through the noise and stand out during the busiest shopping time of the year. The pressure to promote your business effectively, while juggling sales, marketing and customer service, was overwhelming.
Think of AI like that perfect holiday gift — initially daunting to pick out, but ultimately transformative. From handling routine customer queries to streamlining inventory management, AI is like having a tireless assistant who never asks for overtime.
But here’s the thing: Choosing the right AI tool shouldn’t feel like blindly picking from a gift catalog. The key is finding a solution that plays nice with your existing tech and feels less like a disruption and more like a natural extension of your business. Think of it as adding a new team member who seamlessly fits into your existing crew.
Related: Almost Half of VC Funding Raised Last Year Went to Startups in One Category
Implementing 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 like proper support, education and resources to implement AI solutions across their business. In my experience, I’ve seen one of the biggest issues in the technology industry — the overwhelming hurdles 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 tech failures, 28% about employee pushback and 27% about costs burning a hole in their pocket, according to the Builder.ai survey. Add to that the 30% who are watching the AI regulatory landscape with raised eyebrows.
While these fears are valid, I’ve learned strategies to navigate these concerns and discovered in my journey that it is not the technology that is the barrier for users, it’s the need for understanding and deploying it to make it accessible and integrated throughout a business. It is critical for small businesses to stay competitive and not fall behind on technological advancements in their respective industries. While there are apprehensions and outside 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.
The 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 investment this year. Why? Because smart business owners know that staying competitive means embracing innovation, even when it feels uncomfortable.
Beyond the holiday chaos, AI brings year-round perks. Picture this: smoother app development, better time management and communication that flows effortlessly both inside and outside your business. The best part? You’re 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 streamline processes and make your overall workflow more efficient.
When seeking an AI tool, look for one that acts as a partner of your team and easily integrates with existing technology and infrastructure already in place. It should be straightforward, fully transparent and give small business owners complete 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, no matter the storm.
Related: These Days, Everything Is ‘Powered By AI.’ Here’s How to Tell Hype From Real Innovation.
The final take
The holiday season reminds us that sometimes the best gifts are the ones that seem a bit intimidating at first. In my own career, I’ve learned firsthand that technology should empower entrepreneurs and make them feel like superheroes, it shouldn’t set them back. AI might feel like that complex gadget you’re hesitant to unbox, but once you do, you’ll wonder how you managed without it. And unlike those holiday sweaters that end up in the return pile, this is one investment that keeps on delivering value.
For small businesses leaping headfirst into 2025, the question isn’t really 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.
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Sachin Dev Duggal