AI Myth Busters: What SMBs Really Need To KnowAI Myth Busters: What SMBs Really Need To Know

Adopting AI is the crucial first step in the journey toward unlocking greater efficiency, innovation and growth for businesses

Suhaib Zaheer, Suhaib Zaheer, SVP and general manager at Cloudways

January 15, 2025

4 Min Read
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Every technological revolution has its skeptics. From the printing press to the internet, game-changing innovations have faced initial resistance. Today’s artificial intelligence (AI) revolution is no different, particularly among small and medium-sized businesses (SMBs). With only one in four currently using AI, many are letting myths and misconceptions stand between them and AI’s transformative potential.

Over four in 10 (43%) small and medium-sized businesses have no plans to use Artificial Intelligence, despite 42% believing AI will increase productivity. This disconnect between perceived value and adoption plans reveals a landscape shaped more by misconception than reality. The journey to AI adoption often stumbles on five common hurdles - each one built more on fiction than fact:

Myth #1: AI is too expensive for small businesses

The notion that AI requires enterprise-level budgets couldn't be further from today's reality. Traditionally, AI systems were expensive and accessible only to large corporations, but the emergence of Large Language Models (LLMs) has significantly lowered these barriers, making the AI landscape more accessible and affordable.

This shift is driven by two key factors: The decrease in operating costs of AI systems and the rise of free, open-source tools that support the development and application of AI technology. Consider this practical example: automated systems are revolutionizing the way SMBs manage their website bandwidth capabilities. By dynamically adjusting bandwidth in response to fluctuations in web traffic, these tools enable SMBs to maintain optimal website performance without overspending on excess bandwidth.

Related:Design Without Delay: The AI Solution to Urban Inefficiency

Myth #2: You need to be a tech expert

Many SMBs believe AI implementation requires deep technical expertise or dedicated IT teams. However, to unlock the full potential of AI, SMBs must recognize that AI's effectiveness depends on the data it receives. Success with AI isn't about technical expertise - it's about understanding your business goals and processes.

Larger SMBs can drive this by encouraging collaboration across cross-functional teams, allowing fresh insights to uncover new opportunities for data-driven innovation. Smaller SMBs, in contrast, can focus on ensuring every employee understands how AI can be applied to optimize their work, helping to streamline processes and maximize the impact of technology investments.

Myth #3: AI makes better decisions than humans

While AI offers powerful analytical capabilities, it's not a replacement for human judgment. Understanding both the strengths and weaknesses of AI's problem-solving abilities will help SMBs to form realistic expectations and find practical uses for AI within their operations. Therefore, a strategic approach that combines AI technology with human expertise is crucial for SMBs to succeed.

Related:Beyond Chatbots: How High-Maturity AI Improves Customer Service Operations

For example, AI can assist with tasks like customer segmentation, identifying high-value customers, or trend analysis, such as spotting seasonal purchasing patterns. However, it's how employees use this information that ultimately drives business success. Employees play a vital role in maintaining a critical perspective of AI, ensuring outputs align with business goals and values.

Myth #4: AI will replace human workers

Perhaps the most persistent myth is that AI threatens jobs. In reality, AI is revolutionizing the way early adopters operate, particularly for SMBs, where time and resources are especially precious. Rather than replacing jobs, AI empowers teams by automating repetitive and mundane tasks, freeing up employees to focus on innovative and strategic work that drives growth.

For SMBs, adopting AI opens doors to upskilling existing employees, enhancing productivity and even creating new roles in areas like AI management and data analysis. Far from a threat, AI is a tool to complement workforces and unlock new opportunities, helping businesses thrive in an increasingly competitive landscape.

Myth #5: AI creates security vulnerabilities

While security concerns are valid, they shouldn't prevent AI adoption. AI systems, while powerful, can introduce new vulnerabilities if not properly secured. To mitigate these risks, SMBs must implement strong security practices when adopting AI, including ensuring robust access controls, regular system updates and encryption of sensitive data.

However, this can be taken one step further, as AI can also be used to strengthen cybersecurity efforts. AI systems can detect threats faster and more accurately than traditional methods by analyzing vast amounts of data in real time. It identifies patterns that signal potential security breaches and can even automate responses to neutralize threats.

In short, now is the time for SMBs to act. While advances in technology may seem daunting, adopting AI is the crucial first step in the journey toward unlocking greater efficiency, innovation and growth for your business. Successful AI adoption typically starts small - many SMBs begin with focused applications in customer service or data analysis before expanding their capabilities. Taking measured steps toward AI adoption today positions businesses for long-term success in an increasingly competitive and digital world. 

About the Author

Suhaib Zaheer

Suhaib Zaheer, SVP and general manager at Cloudways, Cloudways

Suhaib Zaheer is the senior vice president and general manager of Cloudways, a cloud hosting provider that offers businesses, agencies, freelancers and more a fully managed, expert hosting management platform. Suhaib joined Cloudways in 2021 as their COO and helped Cloudways dedicate its services to SMBs.

Outside of his love of cloud hosting and business innovation, Suhaib is also a huge music supporter and is a member of the board of directors for HRDRV.

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