Many small businesses are still grappling with the best ways to use generative artificial intelligence (AI).
But as The New York Times (NYT) reported Sunday (Aug. 18), generative AI, or GenAI, has been a “game changer” for some small business owners, helping them do chores like write code, edit copy and understand legal complexities and in turn launch their companies faster.
The technology “kind of gives you stilts to get through an obstacle — to get through a minefield,” said Steven Bright, founder of Skittenz, a company that makes colorful coverings for mittens. “You can get from one point to another faster.”
As the NYT noted, there is so far little data to show how many startups are using AI, and if the technology is helping them begin hiring and reach profitability, though research does suggest that newer businesses are at least more inclined to experiment with the technology.
However, the report cited a working paper published in April by the National Bureau of Economic Research showing that AI use was more prevalent among younger companies. The paper’s authors argued that generative AI may be more alluring to up-and-coming companies because it is a “general-purpose” technology that doesn’t cost much to use.
Recent research by PYMNTS Intelligence shows that 96% of small and mid-sized businesses (SMBs) that have used AI tools — though not necessarily generative AI — view it as an effective way to streamline tasks.
“In fact, data shows that businesses that are most at risk and have already employed cost-cutting strategies are also the ones that may benefit most by deploying AI to automate even mundane tasks,” PYMNTS wrote in June.
“There is a clear division in how SMBs are currently using the technology, data shows. Those with increasing revenues and those generating more than $1 million annually are twice as likely as those with stable or declining revenue to use AI.”
In related news, PYMNTS wrote last week about the growing trend of job applicants using AI to craft resumes, and efforts by companies to curb the practice.
“We have implemented a process to weed out applicants who are using AI for bulk applying,” Kara Ayers, senior vice president of global talent acquisitions at Xplor Technologies, told PYMNTS. “At the bottom of the job description, we ask the candidate to enter a certain keyword or phrase and to place that word or phrase somewhere specific in their application.”
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