AI for Small Business Owners: Practical Tools For Boosting Your Operations

Whether you’re running a local bakery, a fashion boutique, or a landscaping service, AI can help. Use AI tools to scale certain business operations, improve customer service, enhance content creation for marketing strategies, and make your life running a business much easier. The best part? You don’t need a technical background to get started.

• Understanding AI for small business
• 15 best AI tools for small businesses
• How to use AI for small businesses
• AI for small business: Risks and pitfalls
• Run your small business more efficiently with AI 

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Understanding AI for Small Business

Data from PwC already shows that the industries most exposed to AI have experienced 4.8 times higher productivity as of 2024. Small business owners can lean on AI tools to improve their operations and save time without breaking their budget.

Get rid of repetitive tasks.

AI can automate the mundane tasks that eat up most of your time,like bookkeeping. Unlike regular bookkeeping tools, AI tools can analyze your entire spending in seconds and give you personalized insights to make the best decisions.

Access 24-7 customer support.

As of 2024, 46% of American businesses surveyed by Statista reported using an AI-powered chatbot. While human support is away, AI virtual assistants can answer questions about store hours, what products are in stock, and order status instantly.

Run better, and more, marketing campaigns.

AI takes things further than other marketing tools by learning from multiple sources of your data and adjusting on the fly. Use this holistic data to predict what your customers want before they even know it themselves.

Stop dying over inventory.

Stay ahead of inventory headaches with AI. Instead of frantically counting stock or guessing what will run out next, AI tools can track your inventory levels in real-time and predict when you'll need to reorder. 

Start predicting sales trends.

AI can take sales forecasting to the next level by predicting your future stock. An AI tool not only reorders when stock is low—it improves accounting efficiencies through data analysis, examining sales trends and seasonality to anticipate demand.

Drive website performance.

AI web performance tools don’t just give you basic stats. AI can analyze visitor behavior in real-time, optimize your website’s load times, and even run A/B tests on its own.

Make better decisions.

AI helps you make better decisions backed by data that's way more comprehensive than what standard tools offer. And it can dive deep into customer preferences and market trends, guiding you on everything from pricing to staffing. 

Spend less, where you can.

AI helps you cut costs by automating regular operations like scheduling and inventory, while also spotting new opportunities for saving money. It analyzes your operations to help you focus your budget on the most impactful things you should be doing for your business.

Optimize manager notes.

AI tools go beyond basic note-taking by linking manager notes directly to employee profiles, making it a breeze to track performance and feedback all in one place. Homebase offers this feature, helping you access important information about your staff in an organized and centralized way.

Immediately transcribe voice notes.

AI can instantly convert your voice notes into text, cutting out manual note-taking. Homebase's talk-to-type feature makes that communication smoother, capturing that vital information quickly and automatically sharing it with your team.

Find replacements for sick employees immediately. 

While standard scheduling tools help you track shifts, AI takes it a step further by analyzing staff availability to suggest the next-best replacement when someone calls in sick. Homebase uses this smart approach to ensure your operations run smoothly, so you’re never left in a staffing bind.

Auto-create employee schedules based on typical shifts. 

AI tools can dig into data and identify patterns to automatically whip up employee schedules, saving you a ton of time. Tools like Homebase can also help you do this with next-level smart scheduling that adapts to your business's needs.

15 best AI tools for small businesses

We rounded up the best AI tools popular with small business owners. 

Accounting, bookkeeping, and finance

Traditional bookkeeping tools might automate a few tasks, but they still require a lot of manual input and oversight. One wrong entry and you're dealing with a very expensive mistake. AI-powered tools like QuickBooks and Zoho Books don’t just automate financial tasks—they actually learn from your financial data and give you the best suggestions based on that. It’s like having a virtual CFO, without paying the fancy salary.

• QuickBooks: QuickBooks gives you real-time insights and helps you make data-driven decisions. Pricing starts at $17.50/month. 
• Zoho Books: Zoho Books, with its AI assistant Zia, not only handles your bookkeeping but offers personalized financial reports, taking much of the guesswork out of managing your cash flow. Free plan available.

Marketing and advertising

AI-powered marketing tools like Mailchimp specialize in helping small businesses. They analyze the behavior of your customers as a whole and deliver insights that help you connect with your audience. With these tools, marketing becomes more anticipatory and data-driven, taking the guesswork out of the process.

• Mailchimp: Mailchimp’s AI-driven analytics help you pinpoint what resonates with your customers by monitoring behavior patterns, so you can send the right message at the right time. Free tier available.
• ChatGPT: Quickly generates marketing copy with AI that stays on-brand, saving you hours of brainstorming. Free version available.

Task management

While living the daily #smallbusinessgrind, it’s easy to lose track of what needs to get done. Tools like Todoist and Motion help you cut through the chaos by helping you manage your time more efficiently. 

• Todoist: Todoist uses AI to analyze your workload and suggest the best order to tackle your tasks, so you can focus on what really matters without getting sidetracked. Pricing starts at $3/month.
• Motion: Motion uses AI to create a dynamic schedule that adjusts according to your tasks, meetings, and priorities throughout the day. It helps you stay on track with a real-time, intelligent task manager. Pricing starts at $19/month.

Meeting scheduling

Between juggling client calls and catching up with your team, scheduling meetings can take a lot of back-and-forth that wastes valuable time. AI scheduling tools can proactively sync up everyone’s calendars and suggest the best times automatically.

• Reclaim.ai: Reclaim.ai automatically blocks time on your calendar for meetings and tasks to maximize productivity. Free plan available.
• SavvyCal: Savvycal is an AI-powered meeting scheduling tool that simplifies booking by analyzing your calendar to suggest optimal times for appointments. Pricing starts with a free plan.

Chatbots and customer service

Juggling questions and feedback from your customers can feel like a full-time job, but AI-powered chatbots lighten the load. They give instant responses to common questions and can even pass along the more complex ones to your customer service reps.

• Tidio: An AI chatbot that chats with your customers 24/7 and integrates with live chat. Free plan available.
• Dialpad: AI analyzes customer conversations in real-time, giving you live insights to improve the experience. Starts at $15/month.

Predictive analytics

You can use AI tools to predict customer trends or know who’s likely to make a purchase before they do it. AI predictive analytics tools can help you spot those unique, personalized patterns and opportunities that give your business a real competitive edge. 

• HubSpot CRM with AI: HubSpot's AI-powered CRM helps predict customer behavior by analyzing past interactions, allowing you to identify leads that are most likely to convert. It also suggests the best times to engage with your contacts. Free plan available.

Websites

While traditional website builders offer static templates, AI-driven platforms analyze user interactions to personalize the browsing experience in real time. This keeps visitors engaged while showing them the content and products they want. 

• Wix ADI: This AI-powered website builder creates a personalized site based on your needs and preferences. Plans start at $14/month.
• Unbounce: With AI tools for A/B testing and landing page optimization, Unbounce helps you improve conversion rates without complex coding. Pricing starts at $74/month.

Recruiting

Traditional recruiting methods can be slow and cumbersome. AI recruiting tools, however, analyze resumes and candidate profiles against job requirements, scoring them based on fit and even assessing cultural alignment. This speeds up the hiring process and improves the quality of candidates, helping you find the perfect match quicker.

• HireVue: This AI recruitment platform evaluates candidates through video interviews and predictive analytics. Pricing varies based on features.
• Pymetrics: By using neuroscience-based games and AI, Pymetrics assesses candidates’ emotional and cognitive traits to match them with suitable roles. Pricing is available on request.

Transcription

Transcribing meetings or interviews can be tedious. AI transcription tools streamline this process by automatically converting audio to text with high accuracy, saving you time and reducing human error. With features like speaker identification and real-time transcription, these tools provide a much more efficient way to capture spoken content.

• Otter.ai: This AI transcription service offers real-time transcriptions and collaborative features. Free plan available.
• Riverside: Riverside’s AI-driven transcription service offers accurate and fast transcriptions while maintaining the context and nuances of the conversation. Pricing starts at $15/month for individual users.

Managing hourly teams

Managing hourly workers typically involves a lot of manual tracking and scheduling, which can lead to confusion and inefficiencies. Unlike traditional methods that require constant oversight, AI-powered tools can automate scheduling, track hours in real time, and even predict labor needs based on historical data. This allows you to focus more on team management rather than getting bogged down in administrative tasks.

• Homebase: With features like employee scheduling and timesheet management, Homebase makes managing hourly teams seamless. Free plan available for up to 20 employees, and starting at $20/month for unlimited employees.

How to use AI for small businesses

Ready to start using AI tools in your small business? Let’s dive into some best practices to get you started.

Decide what you want to automate.

Start by making a list of repetitive tasks that eat up your time. This could be managing communications with customers or tracking inventory. Figure out what to automate first and focus on that.

Research tools.

Once you know what to automate, it’s time to hit the internet and explore your options (like the earlier tools section in this article). There’s an entire ecosystem of AI tools out there, so focus on the ones that cater to your specific needs as a small business.

Set a budget. 

AI tools come in all price ranges, including some that won’t cost you a dime. Set a budget that aligns with your business goals.

Implement and onboard.

Now it’s time to roll out your chosen tool. Make sure to train your team on how to use it effectively—this is crucial for ensuring everyone’s on the same page and ready to embrace the change.

Test with small pilot project.

Before going all in, try out your new AI for small business on a pilot project. A lot of the tools we discussed earlier offer a free trial to help you get started before you go all in on a subscription. This will help you identify any hiccups and fine-tune the process without disrupting your entire operation.

Talk to account managers to optimize.

Once you’re up and running, reach out to the account managers of your chosen tools. They can offer tips on how to maximize the software’s features and tailor it to your business’s unique needs.

Continue iterating over time.

AI is a journey, not a destination. Regularly check in with the tools to see how they’re working for you and make adjustments accordingly.

AI for small business: risks and pitfalls

While AI can be a game-changer, it’s important to be aware of the potential risks and learn how to avoid them. Here’s what to keep in mind to navigate AI tools safely.

Data inaccuracies

AI is only as good as the data you feed it. Inaccurate or outdated information can lead to poor decision-making, so always double-check your data sources to make sure they’re in good shape.

Broken connections and updates

Technology is great until it’s not. Keep an eye out for broken integrations or software updates that could disrupt your workflow and affect productivity.

Employee ethics

Be transparent about how you’re using AI, especially when it comes to employee monitoring. A clear ethical stance can help maintain trust and morale among your team.

Security and privacy

AI tools can expose your business to security risks if not managed properly. Make sure any tool you use complies with privacy regulations and has robust security measures in place.

Algorithmic bias

AI systems can sometimes reflect the biases of their creators. Be vigilant about monitoring output so that your AI tool isn’t inadvertently perpetuating harmful assumptions or prejudices.

Onboarding ramp-up

Implementing AI can come with a learning curve for your team. Be prepared for some initial slowdowns as everyone gets up to speed, and offer ongoing support to help them along the way.

Run your small business more efficiently.

If you're wondering where to start with scheduling and payroll, Homebase has you covered: 

• When an employee calls in sick or doesn’t show for a shift, Homebase automatically suggests employees who can step in. With just one click, you can message one employee or all of them to find coverage immediately.
• Schedule building is a breeze with Homebase. The one-click suggestions based on shift data take the hassle out of creating schedules, helping you keep everything running smoothly.
• Homebase’s “Talk to Type” feature gives managers the ability to record audio notes for their logs, eliminating the struggle of unstructured and messy written notes.
• Homebase also improves your performance documentation. If an employee’s name pops up in your manager notes, it will suggest a relevant note to add to their profile, making sure you have all the essential information at your fingertips.

Try it out yourself. See how Homebase can help you manage your team more efficiently and create a more productive work environment.

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