As artificial intelligence tools flood the business world, small business owners are under increasing pressure to adopt the latest technologies or risk being left behind. From automating customer outreach to analyzing sales data, AI promises to make small operations more efficient, scalable, and profitable. But as entrepreneurs navigate this fast-changing tech landscape, a new challenge is emerging: how to integrate AI without losing what made their business stand out in the first place.
A new Mastercard report spotlights just how quickly AI is gaining ground among small businesses. Hosted by marketing expert Jacqui Jones as part of Mastercard’s “Digital Doors” program, the initiative highlights how small firms can use automation to generate more leads, boost conversion rates, and save time. According to Jones, companies that integrate AI into their sales process can see up to 50% more qualified leads and a 20-30% increase in conversion rates. And perhaps most valuable of all-78% of business owners reported significant time savings.
But the excitement doesn’t come without caution. Jones herself noted the importance of maintaining relationships, using tools like Otter.ai to log client meetings and ChatGPT to generate email drafts-always reviewed before hitting send. “AI is trying to be you,” she told webinar attendees. “But AI needs you to do this process.”
This balance is what many small business experts are urging entrepreneurs to consider as they ramp up their use of AI. Among them is George Kailas, CEO of Prospero.AI, an investing insights platform that uses artificial intelligence to make Wall Street-grade tools available to everyday investors. Kailas, who has worked with both major financial institutions and small-scale operators, believes small businesses need to stop equating automation with innovation.
“There’s this fantasy being pushed that small businesses need to automate everything to stay competitive,” Kailas said. “But if you’re a coffee shop or a local contractor, automating your customer interaction doesn’t make you more efficient-it makes you forgettable.”
According to Kailas, the edge of a small business has always been trust and personal connection-qualities AI simply cannot replicate. “Where AI actually helps,” he added, “is behind the scenes: freeing up time from admin or inventory so you can double down on what makes people come back.”
In other words, AI works best not when it replaces the human, but when it supports them.
The data backs this up. According to Verizon’s latest State of Small Business survey, only about 38% of small businesses said they had adopted AI in the past year, despite most reporting increases in overall IT investments. The hesitation isn’t without merit. Entrepreneurs cited concerns over data privacy, accuracy, and even fears that employees might see AI as a threat to their roles.
Still, the productivity payoff is real. Tools like Mailchimp and Zapier can help business owners respond instantly to inquiries, while platforms like Lavender.ai coach users on how to write better emails in real time. And for customer-facing video content, Loom and Vidyard offer affordable production options.
The key is using these platforms to enhance-not replace-the authentic engagement that fuels business growth. AI can automate the mundane, streamline follow-ups, and even forecast customer behavior. But it still takes a human to build relationships, interpret feedback, and adjust in real time based on intuition and experience.
As Kailas puts it, “Tech should be your assistant, not your brand.”
For small businesses trying to scale without sacrificing authenticity, that may be the best strategy of all.
