The AI Edge: How SMBs leverage technology to gain a competitive advantage

Written by Akshay Srivastava, EVP and GM, Small Business, Mid-Market & Enterprise

Small businesses have always thrived on personal connections, agility, and local loyalty. But in today’s digital-first world, customer expectations have changed – and so has the playing field. Our research indicates that 65% of Brits would be unlikely to return to a business after poor customer service. Nowadays, consumers not only want but expect immediate, round-the-clock service across a growing number of channels, and for many small and medium-sized businesses (SMBs), that creates a real strain.  

With tight margins and limited staff, how can smaller firms deliver the seamless, personalised experience that’s fast becoming the norm? The answer lies in smart, accessible technology – particularly artificial intelligence (AI). 

A more cost-effective option 

One of the biggest challenges for small teams is delivering consistent service while juggling multiple responsibilities. AI isn’t just for tech giants or e-commerce behemoths anymore. A new wave of intuitive, affordable solutions are making advanced technology easily deployable and usable for businesses of all sizes. Rather than replacing human employees, these tools work alongside them, automating repetitive tasks, managing customer interactions, and unlocking insights that were previously out of reach. 

Now, customers want AI to support the customer service function as 60% of them value the time-saving convenience of AI-powered chatbots and 45% appreciate their immediate response times. AI-enabled chatbots and virtual assistants help by taking care of basic customer needs; from responding to FAQs to confirming bookings, or checking order statuses, all in real-time. 

Solutions, such as AI receptionists, provide 24/7 service for incoming calls and handling routine customer queries like business hours or services. They can also efficiently schedule appointments, deliver SMS confirmations, and intelligently route callers to the right person or department based on natural conversation. Ultimately, AI receptionists eliminate long hold times for easy-to-handle queries, ensuring customers receive quick, accurate responses.  

In fact, businesses adopting AI-driven customer service solutions have reported a 25% reduction in customer service costs. These virtual ‘assistants’ are growing more capable by the day, providing SMBs with an alternative to expensive solutions, and freeing up human staff to focus on more meaningful interactions and business priorities. 

Omnichannel experience 

Today, convenience and speed are paramount. Customers expect to engage with businesses on their own terms; whether it’s via email in the morning, WhatsApp on the go, or live chat during a lunch break. While some customers still prefer to pick up the phone, others lean toward live chat, social media DMs, or SMS. It’s the younger generations in particular that are turning to digital channels first, with 16-24 -year-olds citing WhatsApp as their top preference for contacting a brand. For SMBs, this creates both a challenge and an opportunity. 

This is where an omnichannel strategy is effective, connecting all your customer touchpoints into one unified system. The good news? AI makes it not only possible but easy to implement and highly effective. AI supports this integration by maintaining continuity across conversations, meaning customer conversations are no longer siloed on one platform. Whether a customer starts a conversation on Instagram and continues it via email, AI can track the full journey, ensuring context is preserved and the experience feels seamless, so customers don’t have to repeat themselves, no matter how they reach out. It also gives your team a complete view of each customer’s journey, helping you respond faster and more effectively. 

Better insights, smarter decisions 

To grow and stay ahead, SMBs need to really understand their customers – what’s working, what’s not, and where frustrations are creeping in. That’s where the right tools make all the difference. 

With help from AI and built-in analytics, teams can go beyond surface-level metrics and uncover meaningful patterns in customer interactions. Every email opened, chat started, or phone call placed becomes a data point that feeds into a larger picture of what customers want and need: which questions come up again and again, where customers are getting stuck, and what’s actually driving satisfaction or repeat business.  

This kind of insight means teams can stop firefighting and start making decisions that actually move the needle, from improving service and fine-tuning processes, to planning ahead and solving problems before they grow. It also helps shift customer service from something reactive and resource-heavy to something that adds real value. Businesses can see which touchpoints build trust, which products or features customers love, and where to invest time and energy for the business impact. Ultimately, the better the understanding, the smarter the decisions, and the stronger the customer relationships.  

At the end of the day, success for small businesses still comes down to knowing their customers and showing up in the moments that matter. What’s changed is how they can do that. AI helps teams work smarter and allocate the right tasks to humans so they can focus on the personal connections and meaningful work that drive loyalty and growth. 

The SMBs embracing AI aren’t just keeping up; they’re pulling ahead. They’re finding practical ways to respond faster, serve better, and stay efficient without stretching limited resources. And in a world where loyalty is earned one great experience at a time, that can make all the difference.