Clutch Report Reveals Small Businesses Shift to Self-Made AI Tools in 2024

Clutch Report Reveals Small Businesses Shift to Self-Made AI Tools in 2024 Clutch, the leading global marketplace of B2B service providers, today released its findings from a survey of 500 small businesses in the US. The report highlights a notable shift in the way small businesses are utilizing artificial intelligence (AI) tools. The survey indicates that by 2024, small businesses are expected to increasingly rely on self-made AI solutions. In the past, small businesses often depended on third-party AI tools and services to meet their business needs. However, the Clutch report suggests that as technology becomes more accessible and user-friendly, businesses are opting to develop their own AI tools in-house. According to the survey, 64% of small businesses expressed interest in creating custom AI solutions tailored to their specific requirements. This reflects a growing trend among business owners who are keen to harness the power of AI to enhance efficiency and productivity. The top reasons cited by small businesses for developing their own AI tools include cost-effectiveness, control over the development process, and the ability to customize the technology to their unique business needs. By developing AI tools in-house, businesses can ensure that the tools align closely with their goals and requirements. Another significant factor driving the shift towards self-made AI tools is the increasing availability of user-friendly development platforms. These platforms provide the necessary tools and resources for businesses to create AI solutions without the need for extensive coding knowledge. The accessibility of these platforms has democratized AI technology, making it more approachable and attainable for small businesses. Despite the growing interest in self-made AI tools, the survey also highlighted some challenges that small businesses face in this area. One of the key obstacles is the technical skills gap. Many small businesses lack the necessary expertise and knowledge to develop AI tools independently. To address this issue, Clutch suggests that businesses could consider hiring in-house AI specialists or collaborating with AI consulting firms to bridge this skills gap. Moreover, the survey revealed that 49% of small businesses expressed concerns about the potential risks associated with self-made AI tools. These concerns primarily revolve around data privacy and security. However, with proper precautions and adherence to data protection regulations, these risks can be mitigated effectively. The Clutch report also indicated that small businesses are gradually recognizing the diverse applications of AI across various business functions. The report highlighted some of the areas in which small businesses are using AI tools, including customer service, sales and marketing, data analysis, and process automation. In the customer service domain, AI-powered chatbots are transforming the way businesses interact with customers. These virtual assistants can provide quick and accurate responses to customer inquiries, improving overall customer experience and reducing workload for employees. AI is also making significant contributions to sales and marketing efforts. Predictive analytics, for example, allows businesses to analyze customer behavior, identify sales patterns, and make informed decisions to optimize their marketing strategies accordingly. Data analysis is another area where AI is proving invaluable. Small businesses can leverage AI tools to efficiently analyze large volumes of data and extract meaningful insights. This enables them to make data-driven decisions and gain a competitive edge in the market. Additionally, AI-based process automation tools are helping small businesses streamline their workflows and increase efficiency. By automating repetitive tasks, employees can focus on more strategic and value-added activities, improving overall productivity. While the shift towards self-made AI tools signifies a positive trend for small businesses, the report emphasizes the need for a balanced approach. Businesses must carefully evaluate their needs and capabilities before deciding to develop AI tools in-house. Collaboration with AI specialists or consulting firms can provide invaluable assistance during the development process. As AI technology continues to evolve and become more accessible, small businesses have a unique opportunity to leverage this powerful tool to boost their growth and competitiveness. By embracing self-made AI tools, businesses can tailor the technology to their specific needs, reduce costs, and enhance their overall operational efficiency.