Artificial Intelligence (AI) is revolutionizing today's technology space for all businesses, regardless of size. While large organizations have adopted AI more quickly, small businesses are taking cautious but steady steps towards experimenting with AI applications.
According to a 2025 US Chamber of Commerce report, 96% of small business owners plan to adopt emerging technologies, including AI.1 The technology offers some much-needed respite with quick, low-lift wins that save hours each week — without requiring new tools or technical skills.
For those who juggle marketing, operations and customer service on their own or with limited staff and budget, AI can be of great help.
Let's explore AI implementation for small businesses, including some quick wins and potential risks.
How are small businesses using AI now?
Small businesses are using AI to make time-consuming tasks easier, while boosting productivity and consistency. The applications used often build on existing workflows, requiring minimal setup and delivering quick results.
According to an AI adoption survey conducted in May 2025 by the National Small Business Association and Reimagine Main Street:2
- 91% use AI for Marketing.
- 76% use AI for worker productivity.
- 69% use AI for product and service innovation.
AI is being used in sales and marketing, mostly to support drafting blogs, email campaigns and communications. AI removes repetitive, labor-intensive tasks from the to-do lists of smaller teams, while also benefiting businesses through tailored messaging.
Many small businesses also use AI for customer support and response management. This use is particularly helpful for businesses in retail, hospitality and real estate, where customer interactions are frequent. Employees can use AI to draft automated replies and response suggestions, handle appointment requests and order updates.
Sample AI prompts for small businesses
Some clear and easy prompts can make it easy to integrate AI for small businesses. Here are some starter prompts that you can copy, paste and start using today :
Marketing prompts (content, social, customer engagement)
Social and content creation
- Write a 120-word social media post promoting our [product/service], using a friendly and encouraging tone that appeals to busy small business owners. Include three relevant hashtags.
- Draft a month-long social media calendar with eight posts tailored to a [type of business], including suggested visuals and calls‑to‑action.
- Write a short email newsletter that highlights our upcoming promotion, includes one customer success story and ends with a clear call to book or buy.
- Turn this blog outline into a 400-word article optimized for local SEO, written for customers in [your city/state].
Advertising and messaging
- Generate three Google ad variations promoting our [offer], each under 30 characters for headlines and 90 characters for descriptions.
- Rewrite this product description to make it more compelling for first-time buyers and include a strong benefit statement.
Productivity prompts (admin, scheduling, communication)
Organization and scheduling
- Create a weekly staff schedule for a team of five, ensuring coverage from 9 a.m. to 6 p.m. and staggering lunch breaks. Output in table format.
- Summarize these meeting notes into key decisions, action items, deadlines and who is responsible for each item.
- Draft a customer follow‑up message thanking them for their recent visit/service and requesting a review on Google.
- Convert this long email into a short, clear message with bullet points and a friendly tone.
Document summaries and analysis
- Summarize this vendor contract into five to seven bullet points, highlighting pricing, renewal terms and any red flags I should be aware of.
- Extract all key dates, deadlines and responsibilities from this project document and organize them into a simple checklist.
Product and service innovation prompts (improvement, new ideas, customer insights)
Product development and customer feedback
- Analyze these customer reviews and identify the top three themes for improvement and the top three selling points we should highlight in marketing.
- Create three new service package ideas for a [type of business] based on current industry trends and customer pain points.
- Generate a list of product improvements we could implement in the next 30—60 days based on common complaints in our sector.
- Draft a simple value proposition for a new service offering that highlights how it saves time, reduces hassle, or improves outcomes for customers.
Market scanning
- Identify emerging trends in [industry] that small businesses can leverage to stay competitive in the next 12 months.
- Compare our current service offering to typical competitors and suggest three differentiators we could emphasize.
Getting started: A quick AI implementation checklist for small businesses
Small businesses don't need complex, large-scale AI integration to improve operations. They can see results from starting modestly and building AI usage over time. Here are some guidelines businesses can follow when looking to incorporate AI into their business:
Identify repeat work. Repetitive tasks handled weekly — such as scheduling rosters, sending follow-up emails, creating basic documentation and posting on social media —can be automated with some AI assistance.
Use tools that you already have. Many design, customer relationship management (CRM) and email platform applications already include AI features. Start by using these features before adding new software.
Pick and choose common prompts. To get started, save about three to five prompts that are relevant to your business. Store them on your system so you can reuse them as needed, instead of rewriting the prompt each time.
Review before putting into action. AI can generate content quickly, but it is crucial that you check for accuracy, compliance and potential privacy exposure. You can also personalize your message before sending it to clients or publishing AI-generated material.
Track improvements. Instead of aiming to use AI perfectly, start with the basics and track how much time you save each week, to measure return on investment.
AI risk management: Responsible use of AI for long-term benefits
According to findings from Gallagher's second annual survey on AI adoption, cybercriminals continue to outpace company defenses by leveraging AI to execute increasingly sophisticated cyberattacks. In response, 42% of respondents have bolstered their cybersecurity practices, while 41% are reevaluating privacy and data security measures to address the unique risks introduced by AI.
It's clear that managing AI risks is becoming increasingly important. Some points to consider include:
- Be cautious if using AI for sensitive or confidential information. Avoid uploading customer data, financial records, or employee information.
- Review AI-generated content before sharing externally.
- Set clear internal expectations around how and when AI should be used.
- Invest in appropriate cybersecurity insurance for your business needs.
- Understand your employees' views regarding AI usage and address their concerns and queries.
- Clearly communicate the extent to which AI should be utilized in the workplace.
- Invest in AI training so that employees can see the benefits and understand how to use it efficiently.
Gallagher can help you get started
As more small businesses explore how AI can improve their daily operations, having the right guidance in place has become crucial. Gallagher's trusted advisors can help you adopt AI responsibly, from managing cyber exposure to selecting the right coverage as your digital risks evolve.
Connect with one of our Small Business insurance advisors to facilitate your AI adoption journey and understand appropriate risk control measures.
Sources
1"The Majority of Small Businesses Embrace Artificial Intelligence," US Chamber of Commerce, 18 Aug 2025.
2"AI Adoption Trends and Strategic Insights: Survey of Small Businesses," Reimagine Main Street, accessed 5 Feb 2025. PDF File.