AI at Work: What Smart Businesses Are Doing That You’re Not (Yet...)
Generative AI Adoption is Accelerating—What SMBs Should Know
The AI moment is now: According to McKinsey’s May 11, 2025 Global AI Survey, over 75% of companies now use AI in at least one function, and generative AI (gen AI) is being widely adopted—especially in marketing, product development, IT, software engineering, and service operations mckinsey.com
For SMBs, this surge means AI is no longer a frontier—it’s a competitive necessity. Whether you're streamlining customer support, optimizing pricing, or crafting sharper marketing content, gen AI offers leverage across core business functions.
Key stats:
71% of respondents use gen AI regularly—up from 65% earlier in 2024 (The state of AI)
Marketing, product development, and IT are top use cases, reflecting areas where gen AI delivers measurable impact
Larger firms (>$500M revenue) use more best practices—but even smaller organizations can drive value with focused, pragmatic deployments
Why it matters for you: Gen AI isn’t just hype—it can deliver rapid, tangible benefits. From automating routine finance tasks like invoicing and vendor queries to enhancing marketing personalization and customer engagement, the technology scales across the business.
From Experimentation to Value—Adoption Practices That Move the Needle
High performers do 3 things differently:
KPIs and road maps power impact Companies that set clear KPIs and invest in structured plans report stronger EBIT gains
Governance isn’t optional Only a minority of organizations have formal councils or risk reviews—yet those that do mitigate inaccuracies, biases, and IP issues more effectively
Deploy across functions High performers scale beyond marketing—they use gen AI also in finance, legal, supply chain, and HR, often customizing or building models rather than relying solely on off‑the‑shelf tools
Practical tips:
Start small but think big: Identify a high-impact area (e.g., customer support ticket triage); define metrics (reduce response times by 30%); run a 4–8 week pilot; iterate to scale.
Build light-touch governance: Require risk checks (accuracy, IP, data privacy), establish owner accountability, and involve legal/IT early.
Align people and tech: Don’t just deploy tools—train staff, hire for AI capabilities, retrain roles to work with AI.
Beware the Gen AI Paradox—Horizontal Tools vs. Deep Integration
McKinsey calls this the “gen AI paradox”: broad adoption of general tools (chatbots, Microsoft Copilot) but minimal EBIT impact mckinsey.com.
Horizontal vs Vertical:
Horizontal tools boost individual productivity (~5–10%), but impact is diffuse.
True value lies in vertical, function‑specific agents—automating workflows end‑to‑end (e.g., credit memo bots, supply‑chain coordinators)
The path forward:
Don’t just bolt AI onto existing workflows; redesign processes around it.
Deploy AI agents that can access your systems, reason contextually, act autonomously, and escalate intelligently.
Adopt an agentic AI mesh: modular architecture combining off-the-shelf agents + bespoke agents, governed, auditable, and scalable mckinsey.com.
What this means for SMBs: You might not have the resources of a Fortune 500, but even small teams can build targeted agents—like automating end-to-end invoice processing, order-to-cash workflows, or client intake systems. The key is focusing on well-scoped, repeatable processes.
Industry Highlights & What’s Next for Small/Mid-Sized Businesses
McKinsey’s sector insights resonate with SMB priorities:
Finance: Gen AI reshapes governance, fraud detection, client advising. Formal risk frameworks are essential
Real Estate: Data-driven insights powered by gen AI can optimize asset management—start by asking the right questions
Telcos & Manufacturing: AI-native models are improving network operations and remanufacturing cycles .
Life Sciences: Gen AI scales R&D—SMBs in these sectors can accelerate content creation, trial management, and regulatory reporting .
Immersive experiences: Even smaller creative firms can leverage AI-generated content and data to redefine engagement .
Next Steps for SMB Leaders:
Diagnose: Assess current AI use, pain points, and repeatable workflows ripe for automation.
Pilot: Run a small-scale, measurable AI pilot in one core domain.
Govern: Establish lightweight controls—accuracy checks, model review, data standards.
Scale: Build, refine, and integrate agents where measurable benefits accumulate.
Invest: Hire/train talent or partner with AI-savvy vendors to bridge skills gaps.
In Summary
Gen AI is no longer optional—it’s a strategic imperative.
Early success requires a balanced mix of focus: clear KPIs, embedded governance, cross-functional pilots.
Maximize impact with vertical, agent-based solutions that redesign workflows.
SMBs can follow a practical, iterative path: diagnose → pilot → govern → scale → invest.
With the right strategy, even smaller organizations can harness generative AI not just to compete—but to lead.
