The AI Knowledge Gap: Why It’s Hurting Your SMB and How to Fix It
Mar 3, 2025
Artificial Intelligence (AI) is no longer a futuristic concept but a present-day reality transforming industries. Yet, only 6.1% of U.S. companies have adopted AI tools, despite their potential to enhance efficiency and competitiveness.
This limited adoption highlights a significant knowledge gap among Small and Medium-sized Businesses (SMBs), preventing them from making the most out of AI’s endless potential. Without addressing this gap, businesses may miss opportunities and fall behind more tech-savvy competitors.
We explore the impact of the AI Knowledge Gap on SMBs and outline actionable strategies to bridge it. You'll understand how targeted AI training and expert collaboration can open your eyes to a mountain of possibilities for team and financial growth.
Why should SMBs use AI to solve problems?
AI can help SMBs overcome many of their biggest challenges.
Cost savings and financial growth
71% of organizations are already using AI to boost their financial operations. AI-driven accounting software can help with routine bookkeeping tasks, detect cash flow patterns, and provide real-time financial insights, helping SMBs manage their budgets more effectively. Predictive analytics can also assist in forecasting revenue, anticipating demand, optimizing inventory management, and identifying cost-cutting opportunities. Using AI tools also saves money by enabling your employees to focus on what matters: growth.
Talent acquisition and retention
AI can streamline hiring by screening resumes and even predict which candidates are most likely to be a good fit based on data analysis and your preferences. AI-driven employee engagement tools can also monitor team sentiment, suggest personalized training programs, and help improve retention by identifying potential burnout risks before they become a problem.
Boost productivity and time management
Repetitive tasks are a big part of our daily work and, as such, consume much of our time and energy. Enabling AI to take care of email responses, data entry, reporting, scheduling, and other repetitive and tedious work will liberate your team’s time and creativity.
AI can analyze workloads, set realistic deadlines, and ensure that resources are allocated efficiently, helping SMB owners and managers stay focused on strategic growth rather than day-to-day operational headaches.
Staying ahead of the competition
“We are living through the Great AI Reset. Agile companies that embrace AI will outpace billion-dollar giants, while slow-moving enterprises risk rapid decline. The winners of this era will be those who adopt an AI-first mindset, fast, relentless, and adaptive.” Tim Cakir
When competing against larger businesses, SMBs can use AI to level the playing field. AI can analyze competitor pricing, trends, and customer behavior to help SMBs price their products and services better. AI-driven personalization engines allow SMBs to offer tailored experiences to customers, similar to what big brands provide, but at a fraction of the cost.
In short, AI enables SMBs to operate smarter, not harder. It helps them make data-driven decisions, optimize workflows, and focus on high-impact activities, making AI not just a luxury but a necessity for long-term success in an increasingly competitive business landscape.
However, there’s a big problem.
The AI Knowledge Gap: What it is and why it matters
The AI knowledge gap refers to the lack of understanding, strategy, and skills needed to properly implement AI in business operations.
Many SMB leaders recognize the potential of AI but don’t know how to put everything into practice. The gap includes uncertainty around AI’s return on investment, integration challenges, and misconceptions about AI replacing jobs rather than enhancing productivity. Businesses miss out on reducing tedious tasks, they underutilize their data, and then fall behind competitors who are leveraging AI to improve their operations.
How does the AI Knowledge Gap impact SMBs?
Underutilization of data
Between 60% and 73% of all data goes unused for analytics, meaning decision-makers are unable to extract meaningful insights from their existing information. This slow progress puts SMBs at a disadvantage as larger companies continue to invest in AI.
Many employees struggle to find and access existing data, leading to wasted time and frustrations. And even when data is available, outdated technology, lack of standardization, and manual data entry make it difficult to transform raw information into actionable insights. Additionally, rapid market changes and insufficient knowledge often make leaders feel like they’re behind.
Competitive disadvantage
SMBs that fail to adopt AI are at risk of reduced operational efficiency, slower decision-making, and an inability to scale effectively. For example, AI adoption plays a crucial role in talent acquisition, as many employers prioritize AI skills in hiring, making it harder for non-AI-driven businesses to attract top talent. As more SMBs leverage AI for market insights and strategic growth, those that ignore AI may fall behind their competitors.
AI Operator’s offers a certification and a virtual badge to everyone who completes the AI-First Mindset Training!
Example of an AI Certificate that attests your AI know-how
Without proper training and guidance, many SMBs either delay AI adoption out of fear of complexity or make misguided investments in AI solutions that fail to deliver value.
Addressing this gap requires a strategic approach: through targeted education and collaboration with AI experts, SMBs can build the confidence and capability needed to make the most out of AI.
Challenges worsening the Knowledge Gap
Limited technical expertise
Most SMBs lack in-house AI expertise, which makes identifying, implementing, and managing AI solutions a complex and fear-inducing task. The lack of technical know-how also contributes to the fear of AI failures, as many SMBs worry that improper implementation could lead to costly mistakes or security vulnerabilities. Without personalized guidance or training, SMB leaders may either delay AI adoption or invest in the wrong tools, further widening the knowledge gap.
Integration with existing systems
Many SMBs operate on outdated infrastructures that were never designed to support AI. This results in compatibility issues, requiring costly upgrades or complete overhauls before AI can be effectively deployed. For example, a retail SMB using outdated inventory software may struggle to integrate AI-driven tools as its existing system cannot process real-time data efficiently. The fear of disruption and the costs associated with upgrades often cause SMBs to postpone AI adoption indefinitely.
Financial constraints
Many SMBs perceive AI as an expensive, enterprise-level investment, making them hesitant to allocate resources to AI initiatives. Unlike large corporations with substantial budgets, SMBs must make every investment count, leading them to prioritize short-term operational costs over long-term technological advancements
To clarify: AI is not expensive; this is a myth.
AI comes at affordable prices, and it’s becoming cheaper. SMBs should not hesitate to at least try using AI for a month and reap all the benefits it has to offer.
Resistance to change
Even when AI tools are available, resistance from employees and leadership can be a major barrier to adoption. Employees may fear that AI will replace their jobs or disrupt their established workflows, leading to pushback against new technologies. Meanwhile, leadership teams that are unfamiliar with AI may be skeptical of its value, delaying decision-making and preventing AI-driven initiatives from gaining momentum. Without clear communication, training, and a culture that encourages innovation, SMBs struggle to get buy-in from their teams, leading to stalled AI projects and missed opportunities for growth.
Addressing these challenges requires a strategic approach that includes education, small-scale AI implementations, and expert guidance.
AI Operator offers the AI-First Mindset Training Program: a 12-week journey to transform how your team works with AI.
Real-world examples and initiatives
Despite these challenges, several initiatives demonstrate how SMBs can bridge the AI knowledge gap.
Google's $10M grant for AI training
Google has committed $10 million to support AI training for SMBs, aiming to democratize AI education and make it accessible to businesses with limited resources. The $10 million grant was awarded to America's Small Business Development Center (SBDC), a network that provides training and resources to entrepreneurs. This funding will support the creation of America's SBDC AI U, which aims to provide small business owners with AI training and tools.
The initiative includes an AI Clinic, AI training for SMBs, and scholarships for the Google AI Essentials course.
Consulting services by major companies
Companies like Deloitte and BCG offer consulting services to help SMBs develop and implement AI strategies, providing expertise that businesses may lack internally.
These firms recognize the growing importance of AI in business operations and are adapting their offerings to meet the needs of SMBs.
Deloitte has established the AI&Data Transformation Hub in Spain as part of its global AI network. A team of thirty partners and five hundred highly qualified professionals are working in the hub, offering services in three main areas:
Improving individual productivity within companies.
Optimizing business models by transforming functions.
Identifying new business models through data and AI-based innovation.
Deloitte's approach emphasizes ethical AI use and has been selected by the Spanish government to create a certification for ethically implemented AI algorithms.
AI-First Mindset Training
Meet Nonplusultra, a multimillion dollar retail growth agency helping tech brands succeed in the retail industry. As global thought-leaders, Nonplusultra understood first-hand the importance of staying ahead of the competition and adopting an AI-First Mindset.
Nonplusultra wasted no time in searching for the best AI Training out there. However, they couldn’t find someone with the right mindset, energy, and knowledge that aligned with their values and needs.
Until they discovered AI Operator’s AI-First Mindset Training, which provided targeted training for their employees throughout 12 weeks packed with interactive and informative sessions. After the training ended, Nonplusultra even asked for extra workshops tailored around needs of their various teams (marketing, HR, retail growth, and a special session for the founders).
The results?
More than 15 hours saved per month per user, thanks to their custom-made ChatGPT AI assistant that integrates with Salesforce.
A streamlined and improved HR and operational process that saves tens of hours through an AI-powered internal help desk. Instead of wasting time asking for or looking for information, team members can just simply ask the AI Assistant and receive an answer in seconds.
A total of 60% of team members who use AI daily to let it handle all routine tasks and enable them to make the most out of their creativity, strategic thinking, and vision.
The Nonplusultra team at their offices in Munich, Germany
Bridging the AI Knowledge Gap: quick actionable strategies
Start small:
Pilot AI projects to demonstrate ROI.
Use compatible solutions to ease integration with existing systems.
Invest in training:
Leverage initiatives like Google’s grant for SMBs.
Upskill teams with targeted training programs, such as those offered by AI Operator.
Collaborate with experts:
Work with AI consultants to develop custom solutions and provide ongoing support.
Build a culture of innovation:
Overcome resistance through clear communication and hands-on learning.
The strategic payoff of closing the gap
Enhanced operational efficiency – AI reduces repetitive tasks, streamlines workflows, and reduces human errors, freeing up employees for higher-value work.
Improved customer experiences – AI-powered insights allow for personalized interactions, faster response times, and data-driven marketing strategies that increase customer satisfaction.
Future-proofing against industry disruptions – AI enables businesses to quickly adapt to changing market conditions, economic shifts, and consumer trends.
Stronger decision-making – Real-time analytics and predictive AI models help SMBs make data-driven choices in pricing, inventory management, and resource allocation.
Cost savings & financial optimization – AI reduces waste, optimizes supply chains, and identifies inefficiencies, improving cash flow and overall profitability.
Competitive edge – With many small businesses adopting AI, those that don’t are at risk of falling behind; AI-driven SMBs can compete effectively with larger firms.
Talent attraction & retention – AI adoption creates a more dynamic work environment, reducing manual labor and increasing job satisfaction, making it easier to attract skilled employees.
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