Small business and generative AI, 2 years on

Generative AI’s impact on small businesses two years on: After two years of widespread access to generative AI technology, the small business landscape has seen significant changes and adaptations.

• A panel of small business experts recently convened to discuss the evolving role of AI in small business operations and its broader implications.
• The discussion aimed to assess whether AI has truly transformed small business practices and to what extent.

TikTok enhances advertising capabilities: TikTok has introduced new performance advertising solutions to help brands achieve better business results on its platform.

• The new tools focus on automation, improved measurement capabilities, and enhanced privacy technologies.
• These advancements come as TikTok’s user base surpasses 1 billion worldwide, making it an increasingly important platform for advertisers.

Snapchat expands advertising options: Snapchat has launched two new advertising placements: Sponsored Snaps and Promoted Places.

• These features are designed to offer businesses innovative ways to engage with Snapchat’s community.
• Launch partners for these new advertising options include major brands like Disney, McDonald’s, and Taco Bell.

SBA faces funding challenges: The U.S. Small Business Administration (SBA) has exhausted its available funds for disaster loans due to high demand following Hurricane Helene.

• The agency has paused new loan offers for its low-interest, long-term disaster loans.
• The SBA is urging continued applications as it awaits additional funding from Congress.

Technological advancements for small businesses: Several tech companies have introduced new AI tools and features aimed at enhancing small business operations.

• Dropbox launched Dash for Business, an AI-powered universal search tool for efficient content management across various apps.
• Apple unveiled a new iPad mini with the A17 Pro chip and Apple Intelligence, offering improved portability and performance.
• Venmo introduced a feature allowing users to schedule one-time and recurring payments or requests, simplifying expense management.

Financial challenges and literacy among small businesses: A recent survey by Xero revealed significant financial difficulties among U.S. small business owners.

• Half of the surveyed businesses struggle with fiscal challenges due to a lack of financial literacy.
• This finding highlights the need for improved financial education and resources for small business owners.

Economic factors affecting small businesses: Recent economic developments have potential implications for small businesses.

• DHL Express announced a 5.9% price increase for U.S. account holders, effective January 1, 2025, which may impact shipping costs for small businesses.
• AAA reported a slight rise in gas prices due to hurricane-related disruptions, potentially affecting businesses reliant on transportation.

E-commerce opportunities for small businesses: Amazon’s Prime Big Deal Days event became the company’s largest October shopping event in history.

• This event presents opportunities for small businesses selling on Amazon to reach a wider customer base.
• It also offers small businesses with tight budgets a chance to acquire new technology and supplies at discounted prices.

Analyzing deeper: The evolving small business ecosystem: As generative AI and other technological advancements continue to shape the small business landscape, it’s clear that adaptability and digital literacy are becoming increasingly crucial for success. While these tools offer new opportunities for growth and efficiency, they also present challenges, particularly in terms of financial management and keeping pace with rapidly evolving platforms. The coming years will likely see a continued emphasis on bridging the gap between technological capabilities and small business owners’ ability to effectively leverage these tools for sustainable growth.