How Can Small Businesses Embrace AI Without Losing Their Human Touch?

These efforts reflect a growing belief that AI is more likely to augment roles than replace them. Why is that? Because human creativity, empathy and judgment are irreplaceable — especially in customer service, team leadership and relationship-building.

Even with AI handling tasks like scheduling, inventory or email responses, your team's ability to connect with customers, solve problems and think creatively sets your business apart. AI can help your business run smarter, but it's your people who truly make it exceptional.

It's not just about preserving jobs but instead evolving them. Small businesses are already using AI to save time so employees can focus on what they do best: engaging with customers, innovating and growing the business.

Investing in your people helps you build a future where technology and human talent evolve together.

What new roles and skills are emerging as AI becomes more common?

So, if people still matter, what does embracing AI look like in practice?

For many small businesses, embracing AI means creating new jobs to support their AI efforts — such as hiring data experts or AI specialists. However, most believe that AI supports existing roles, rather than replacing them.

AI changes job roles and the skills employees need, so upskilling becomes essential. Whether it's learning how to use AI-powered tools or understanding how to interpret AI-generated insights, training is key to ensuring your team stays confident and capable.

Small businesses can prepare by:

• Offering bite-sized training sessions on existing tools, even if training is informal or peer led
• Encouraging cross-training so employees can take on hybrid roles that blend tech and human skills
• Creating a culture of experimentation, where trying new tools is welcomed instead of feared

How can small businesses build trust and transparency while using AI?

Although AI can boost productivity, around a quarter of business leaders worry that it may make employees feel disconnected or uncertain about their future. That concern is a valid, especially in smaller teams where every role counts and relationships run deep.

To maintain trust, small businesses are focusing on clear communication and thoughtful implementation. They're letting employees know how and why AI is being used, involving the team in decisions about new tools and offering reassurance that AI is here to support — not replace — their work.

Trust isn't built by technology; it's built by people, and some roles require — and most likely always will — a human touch. Experts say businesses should be cautious when using AI in areas such as:

• Mentoring and coaching, where empathy and personal connection matter
• Ethical decision-making, where values and judgment come into play
• Creative work, where originality and emotional nuance are key
• High-stakes choices, where consequences are significant
• Complex problem-solving, where context and experience guide decisions

How quickly is AI changing the workplace?

AI adoption is booming. In 2024 alone, GenAI app downloads hit 1.5 billion, nearly doubling from the previous year, according to Sensor Tower's State of Mobile 2024 report. By early 2025, AI-powered tools topped the charts in Apple's App Store.

From marketing assistants to customer service bots, AI is becoming part of everyday business operations.

But here's the catch: technology moves faster than most teams can adapt. That speed is why training and clear usage guidelines are essential.

"If you don't help your people learn how to use AI, they'll use it anyway — without any guardrails," says Ben Warren, head of digital transformation at Gallagher.

To stay ahead, small businesses need to set clear boundaries where AI is helpful and where it's not. A good starting point is focusing on tools your team already uses. Whether it's automating email replies or organizing customer feedback, small steps can lead to big wins — especially when your team feels confident and supported.

Why does training and support matter when implementing AI?

Training and support are critical when introducing AI into small business operations. As AI tools become an integral part of daily workflows, helping your team adapt is crucial to long-term success.

Nearly half of the companies we surveyed already provide AI training. A third are also helping employees in transitioning into new roles as their responsibilities change. This help is especially important for small businesses, where team members often wear multiple hats.

"Technology is becoming part of every role," says Jen Tadin, regional president for Small Businesses and Personal Lines at Gallagher. "That's why it's so important to support employees as they learn to use these tools — even if it's not a core part of their job."

For small businesses, training doesn't need to be a large-scale initiative. It can start small by integrating learning into regular routines. Whether it's a monthly lunch-and-learn session, shared resource folders or quick how-to sessions, training can go a long way in keeping your team confident and capable.

Why is change management important when implementing AI?

Training is just the beginning, because AI isn't a one-and-done upgrade. It's a continuous shift that affects different parts of your business in various ways and often at varying speeds.

Routine tasks such as scheduling, inventory tracking and data entry are usually the first to be automated. However, as AI tools evolve, they're also starting to influence areas such as customer service, marketing and finance.

For small businesses, this means staying flexible and keeping communication open. "You can't just run one campaign and be done," says Warren. "You need ongoing communication and support."

How can small businesses manage change effectively?

• Check in regularly with your team to understand how AI impacts their work.
• Adjust workflows gradually so employees have time to adapt.
• Celebrate small wins — like saving time or improving customer response rates.
• Keep the conversation going so AI feels like a shared journey instead of a top-down directive.

Change can be challenging, but with consistent support and open dialogue, it becomes an opportunity for growth and development. The businesses that thrive will be the ones that treat AI adoption as a process.

How can companies keep the human touch while embracing AI?

As AI becomes an integral part of daily operations, it's essential to ensure that it enhances — not replaces — the human connections that make your business unique.

Here are ways small businesses to keep the human touch front and center:

• Encourage collaboration. Use AI to lighten the load, not take over. Let your team guide how tools are used and where they add the most value.

• Maintain oversight. Keep people involved in reviewing AI-generated decisions, especially in customer interactions or sensitive data.
• Be transparent. Let customers and employees know when AI is being used and why. Clear communication builds trust and sets expectations.
• Value emotional intelligence. AI can't read the room, show empathy or build rapport. Roles that require care, connection and creativity will always need a human touch.

By putting people first and using AI as a tool — not a replacement — small businesses are staying efficient without losing the personal touch that sets them apart. At Gallagher, we help small businesses navigate emerging technologies and turn them into a competitive advantage. Start small, stay transparent and build with purpose — because your business isn't just adapting to change; it's positioned to lead it.