Small businesses in tech-forward cities are rapidly adopting AI to streamline operations and regain their most valuable resource — time.

Forty percent of SMBs in Boston and San Diego have adopted AI tools, according to a Chase report published May 5 in conjunction with National Small Business Week, which runs from May 4 through May 10. The report surveyed 500 SMB owners in March and found:

• 38% of SMBs in Tampa, Fla., and 34% of Seattle-based SMBs are using AI;
• SMBs in Boston, San Diego, Tampa and Seattle are also 1.5 times more likely to credit digital transformation for their post-pandemic success; and
• 90% of SMBs in Chicago and Tampa remain steadfast on strategic investments, even in a volatile market.

These cities are considered prominent tech hubs, providing SMBs with access to collaboration opportunities and local innovation, Jameson Troutman, head of product for small business at Chase, told Bank Automation News.

“This environment is further enhanced by the rich pools of tech-savvy talent coming from local universities and research institutions who can help small businesses effectively implement AI and other advanced technologies into their operations,” he added.

SMBs are increasingly embracing AI, Troutman said, to unlock opportunities for:

• Deeper insights into sales trends and customer behavior;
• Automating processes for customer service, marketing and content creation.

“These technologies give small business owners back the gift of time — one of the most important things to a small business owner.”

— Jameson Troutman, head of product for small business, Chase

Emerging SMB AI applications Chase is monitoring include:

• Predictive recommendations for forecasting sales trends and optimizing inventory; and
• Agentic AI for automating tasks, such as digital chatbots for customer inquiries.

“Many of these use cases are in the very early stages but it is something I am watching closely,” Troutman said.

Tapping tech for growth

SMBs are also eyeing expansion, and technology is leading the way, Troutman said.

Forty-one percent of surveyed SMB owners say they are in “growth mode” and are actively working to increase sales, hire more staff and expand geographically, according to the survey. Even amid macroeconomic uncertainty, 71% of businesses in key markets are experiencing better-than-expected revenues, according to the survey.

“[AI] tools help small business owners make the most of their time so they can focus on what matters most — managing and growing their businesses.”

— Jameson Troutman, head of product for small business, Chase

For example, Chase’s AI-powered Customer Insights tool provides SMB owners with actionable data to help them better engage with customers and make strategic decisions, he said.