Dive Brief:
- Most small businesses are prioritizing digital transformation initiatives in the coming year, according to a JPMorgan Chase report published last week.
- Nearly 4 in 5 small businesses have AI on their radar or have already adopted the technology, the bank’s survey of more than 2,600 business leaders found. Around half of those surveyed plan to add more AI applications to their business in the coming year.
- In order to fuel initiatives and adoption, around 2 in 5 of leaders forecast higher capital expenditures and half plan to increase spending. At the same time, two-thirds of small business leaders predict higher profits and sales are ahead.
Dive Insight:
Business leaders overseeing operations of all sizes expect technology to unlock efficiencies and drive growth this year.
“Businesses are entering 2025 with positive momentum after navigating a period of elevated inflation and interest rates better than expected,” Ginger Chambless, head of research at JPMorgan Chase Commercial Banking, said in the report.
SMBs entered the new year with beefed up tech chops, which they gained last year in response to AI’s rise. In 2023, around 40% of small business leaders had not employed AI solutions, according to Verizon’s annual survey. In 2024, the number of AI users doubled, according to the report.
From managing payroll and inventory to accounting, SMBs turn to tech for a wide variety of tasks. Technology usage in general is nearly universal in small businesses, with most using at least four tech platforms, according to the U.S. Chamber of Commerce Technology Engagement Center.
As SMBs grow more tech-enabled, cybersecurity concerns also rise. Cyberattacks hit 1 in 3 small businesses in 2023, according to a Microsoft Security report. Cyber incidents come at a high price, costing organizations as much as $7 million.
