The adoption of AI technology in the business world is heavily influenced by generational lines, as revealed by a recent survey conducted by American Express in collaboration with Morning Consult. The survey polled over 1,100 small business financial decision-makers and found a significant generational gap in AI adoption among small businesses. Nearly 60% of millennial and Gen Z respondents reported that their companies already utilize AI in various capacities, compared to only 34% of Gen X and baby boomer respondents.
Younger business leaders primarily use AI for task automation and cash-flow analytics, while older generations tend to rely on AI for chatbots, virtual assistance, fraud protection, and workforce management. Across all age groups, the most common AI applications include analyzing customer data, deploying chatbots or virtual assistants, and creating content.
Despite some skepticism, especially among older generations, many business leaders recognize the significant benefits of AI, including increased efficiency, improved customer service, and enhanced decision-making. The survey also highlighted a clear generational divide that may significantly influence future business strategies and profitability.
Furthermore, according to American Express’s fourth Amex Trendex: Small Business Edition, nine in ten small businesses are optimistic about achieving their goals for 2024. The survey also noted a growing confidence among small business owners, particularly younger and digitally-native entrepreneurs exploring new strategies and technologies to drive growth.
The study found that 87% of small business owners feel increasingly confident in their abilities each year, with 83% acknowledging that recent years have required more creative thinking. Additionally, it highlighted generational differences, with Millennials and Gen-Z more focused on expanding their businesses into new sectors and scaling to new locations. These younger cohorts are also more cautious about cash flow, with 32% frequently turning down growth opportunities due to cash flow concerns, compared to 16% of Gen-X and Baby Boomer respondents.
Overall, the survey suggests that small businesses, particularly those led by younger entrepreneurs, are confident and proactive in leveraging technology and innovation to stay competitive and achieve their long-term goals.
