Small and medium-sized businesses (SMBs) have faced a barrage of challenges in recent years. From the pandemic to inflation, maintaining a strong online presence is both increasingly important as well as increasingly challenging. 

Unfortunately, many SMBs struggle to find the time and expertise required to compete in the digital marketplace. However, a new tool has emerged as a potential solution, one you may have heard of already: Artificial Intelligence (AI). Together, we’re going to explore how AI is helping SMBs survive and thrive in the digital landscape, drawing insights from a study conducted by our friends at Siinda.

The challenges SMBs face

SMBs have been navigating a difficult economic climate, with the need to maintain an active and engaging online presence adding to the burden. Many business owners find it difficult to consistently update their websites with fresh, compelling content. This lack of engagement can hinder their ability to attract new customers and grow their business, especially as search engines like Google begin to seek higher-and-higher quality content from business owners.

How AI and SMBs can work together

Many SMBs are optimistic about AI's potential to solve the challenges they face daily. Nearly 47% of small business owners believe AI can be a valuable asset. This sentiment is even stronger among Gen Z entrepreneurs, with 71% expressing strong belief in AI. The Siinda Study found that almost 60% of SMBs in Europe now update their websites within 30 days, a significant increase from 48% in 20233. This shift can be attributed to the introduction of AI tools which enable business owners to create and update content quickly and more frequently.

How SMBs are utilizing AI

SMBs are using AI for a variety of tasks, including:

• Automating routine back-office tasks
• Implementing chatbots in customer service
• Creating new content for websites, blogs, marketing emails, and ad campaigns

We see this growth in utilization reflected by our own metrics, as well. In 2023 we shared that agencies performed 684,000 AI actions, many of which to accomplish the tasks listed above. In 2024, that number exploded to a shocking 5,587,301 AI actions!

The impact of AI on website engagement

The ability to generate fresh content is essential for maintaining an active online presence. Businesses often rely on a combination of websites and social media to get their message out. AI tools can produce blog posts and condense them into social media updates, saving time and keeping content fresh. This is particularly important as search engines favor "fresh content," which can improve search engine rankings. 

However, it’s important to remember that the content must be meaningful, as mass-produced content can be penalized by search engines. Many website builders are also incorporating AI features for content and SEO, further facilitating content updates.

Revolutionizing customer service with AI

AI is transforming customer service, especially with the rise of automated chatbots. Many consumers don't have a preference whether they are helped by an AI or human as long as their questions are resolved efficiently. In fact, 62% of customers would rather interact with a chatbot than wait for a human agent. 

AI tools can translate open-ended questions and direct customers to the right information or department, improving efficiency. The Siinda study has shown a significant increase in the use of live chat by SMBs, increasing from 2% in 2021 to 7% in 2024. In the US, 10% of websites had live chat enabled, suggesting that AI-driven live chat is gaining traction. 

Moreover, AI can do much more than just answer questions. It can analyze chat conversations to improve products and services and prioritize tasks based on customer queries. Those analysis, depending on the software, can be seen in-bulk to inform everything from product direction to support allocation.

AI and content creation are a double-edged sword

AI greatly simplifies content generation for SMBs, allowing them to create blogs, videos, and social media updates more efficiently. In 2023, 7% of European SMBs adopted AI for content tasks. Businesses using AI for content creation have reported improved performance, with 65% seeing better search rankings and increased traffic.

However, it’s important to use AI tools responsibly. Google does not penalize AI-generated content per se, but has guidelines for evaluating the quality of content, regardless of how it was created. Low-quality or auto-generated content that adds no value to users can be penalized. Therefore, businesses must ensure that AI-generated content is high-quality and not used to manipulate search results.

AI in analytics

Over 55% of businesses believe that AI will improve efficiency, especially in areas of customer data trends and automating repetitive tasks. However, Siinda’s data also indicates that 50% of European SMB websites do not have an analytics tool installed, limiting their ability to understand website visitors, even with the assistance of AI. 

While AI may not be able to help analyze website visits, it could be used to look for prospect and customer data trends in CRMs. The main challenge will be creating the correct dataset to analyze and giving AI proper directions. “Garbage in, Garbage out” is something business owners will need to be aware of when trying to do more complex analysis with AI.

Leveling the playing field

AI is helping smaller and micro enterprises compete more effectively against larger companies. AI tools allow SMBs to maintain a strong online presence, engage with customers, and grow in a digital-first marketplace. By automating routine tasks and generating high-quality content, SMBs can compete without needing large marketing teams.

AI-driven customer service tools also provide real-time support, improving customer satisfaction. These combined benefits give SMBs a competitive edge without requiring significant resources.

Conclusion

AI is a transformative technology that is empowering SMBs to overcome their challenges and thrive in the digital age. From automating tasks and generating content to enhancing customer service and analyzing data, AI tools are leveling the playing field, allowing smaller businesses to compete with larger organizations. 

By embracing AI, SMBs can enhance their online presence, engage with customers, and drive sustainable growth. As AI continues to evolve, it will undoubtedly play an even greater role in the success of small businesses.