Small biz's big bet on AI comes with a catch

Ivan Pantic/Getty ImagesThis post originally appeared in the Business Insider Today newsletter.You can sign up for Business Insider's daily newsletter here.Small businesses have some big ideas on using AI.

A majority used AI last year, with some even touting it as a lifeline."I know there's a lot of people worried about AI taking jobs, but, for us specifically, that'd be the only reason why the company is still in business," Brandon Lind, a small-business owner, told BI's Juliana Kaplan.From speeding up processes to making life easier, AI is having a huge impact on how these tiny teams operate.

It doesn't come without serious cost. Small businesses adopting AI pay a median of about $21 per employee, compared with $11 across businesses of all sizes.Some business owners told Juliana about accidentally running up big bills or fears of getting used to an AI tool only to see its price skyrocket.

But for businesses operating on tight margins and under constant threat, a tool that can make a noticeable impact quickly is tough to turn down.AI can go from being a help to a hindrance for small companies.In many ways, the tech is built for smaller companies that can quickly adopt and adapt their processes.

I still think it's pretty unrealistic for a massive company to vibe code its way to a bunch of new software tools. But that becomes a lot more realistic when it's dozens, not thousands, of employees you're overseeing.Cutting down on a few SaaS subscriptions could make a huge difference for a small business.

There's still a real risk of losing what makes a small business so special in the first place.I'm willing to pay more at Bob's Hardware than I would at Home Depot because at the former I know there's a chance Bob himself might help me find what I'm looking for. If instead of Bob I'm getting BobGPT, that value prop doesn't seem so good anymore.

That doesn't mean small businesses are stuck in the past. They are allowed to evolve and adjust.But AI backlash is real.

The real edge f