Considering the slew of AI announcements I covered yesterday from Build and Google I/O, what is everyone doing with all this AI?
Small businesses are increasingly focusing their investments on artificial intelligence, particularly in personalized email marketing, which has emerged as the top channel for 18.9% of small to midsize businesses in 2025, according to a study by Braze. This shift comes as 38% of these businesses now deploy AI, consistent with prior research. While email marketing continues to deliver strong returns on investment, the introduction of AI technology allows for more precise targeting and analytics. Additionally, the study highlights that small businesses are applying AI across various functions, including data analysis and customer service, yet 35% of respondents cite a lack of familiarity with the technology as a barrier to implementation.
A recent survey by Verizon Business reveals that small and medium-sized businesses are rapidly adopting technology, particularly artificial intelligence and cybersecurity measures, to enhance their market growth and operational efficiency. Conducted by Morning Consult, the 2025 State of Small Business Survey highlights that 47% of businesses have updated their cybersecurity solutions, while 38% are actively using artificial intelligence across various functions, including data analysis and customer service. The report indicates that over half of the respondents believe artificial intelligence can address challenges related to employee management, with 56% considering it a tool for improving headcount issues. Additionally, 76% of small and medium-sized businesses agree that social media positively influences their performance, although more than half struggle to keep their online content fresh.
A recent National Bureau of Economic Research study reveals that investments in artificial intelligence chatbots have yielded minimal productivity gains across 7,000 workplaces. The researchers, Anders Humlum and Emilie Vestergaard, found that the time savings from these technologies amounted to only 3%, with no significant impact on earnings or recorded work hours. The report highlights that while there has been substantial hype around AI’s potential, particularly in companies like Shopify and Duolingo, the actual economic benefits have not materialized. In Denmark, where the data was primarily collected, the integration of AI has not led to large-scale layoffs nor considerable advantages for employers or employees. Instead, the hype appears driven by a fear of missing out in competitive markets, rather than genuine advancements in productivity.
Recent research from Georgia State University reveals that the impact of artificial intelligence on the job market is complex, potentially leading to both job displacement and growth depending on the type of tasks involved. The study analyzed over five million patents filed between 2007 and 2023, identifying seven domains of human labor that AI can automate, including language, perception, and creativity. AI tools that enhance engagement, learning, and creativity significantly increase employment in industries such as finance and design. Conversely, tools focused on perception and motor control displacing workers in farming and construction sectors. A report from Forrester predicts that this trend may accelerate with the rise of humanoid robots. The research emphasizes that the potential financial benefits of AI adoption largely depend on the availability of skilled labor, suggesting that firms with a higher number of skilled workers can leverage AI more effectively.
Why do we care?
Because beneath the AI hype cycle driven by events like Microsoft Build and Google I/O, the real-world application of AI in business — especially among SMBs — is murky, inconsistent, and increasingly tactical. Providers serving this market need to separate signal from noise: AI is not an innovation story. It’s a utility story. And increasingly, a usability and labor story too.
Consider that the models themselves are rapidly moving to commodities, and so far, the successful cases are low-hanging fruit. This exposes the gap between AI capability and actual adoption. Providers should not oversell AI as revolutionary; they should frame it as incremental advantage and help clients deploy tactically with measurable outcomes.
AI adoption is often driven by fear of being left behind, rather than by demonstrated business impact. This is important. It indicates that many AI projects will fail quietly unless they are rooted in clear use cases and supported by change management. MSPs and IT providers can create real differentiation by cutting through the hype and driving realistic outcomes.
There’s gold in this rush — but only for those willing to mine it with a shovel, not just chase it with a microphone.