Switchboard Connect #003

Every other week, I curate a few relevant pieces of AI & Automation content to help SMB teams and operators navigate these new waters.

This week shares a lot of data on how SMB’s are spending, implementing, and using AI in their day-to-day operations.

Ready? Let’s go.

Ramp is a business corporate card provider so when they released their Q1 2024 Business Spending report, I listened as they have a ton of real world data on SMB spending.

My highlights from the report:

• AI Spend Growth: AI-related card transaction volume increased by 293% year-over-year, compared to a 6% increase in overall software transaction volume.

• Retention and Growth: 56% of businesses that started using AI vendors a year ago continue to spend with the same vendors. 82% of companies using OpenAI a year ago still use it today, with an average monthly spend growth of 25% in the first year.

• Sector-Specific Adoption: AI usage is rising fastest in non-tech sectors like healthcare and financial services, with healthcare seeing a 131% increase in AI vendor transactions and financial services growing their AI spend by 331% year-over-year.

These findings reflect the strategic shift of SMBs towards leveraging AI for competitive advantage. Read the full rundown here.

Speaking of useful reports chalk full of real world data: Hampton, the private community for entrepreneurs & founders, released their survey of how 100+ founders are using AI in their SMB’s doing $125k to $95m in revenue.

Here’s the highlights for you:

1. High AI Adoption Rate: 90% of founders are using AI or are working to implement it within their business​​.

2. Significant R&D Budgets: 35% of founders have dedicated R&D budgets for AI, with 65% of those budgeting more than $100k​​.

3. Impact on Staff Size: 37% of founders reported that AI has impacted their staff size, with varied effects including mild downsizing and increased hiring due to growth from AI implementation​​.

4. Top AI Tools in Use: Founders are using a variety of AI tools, with notable mentions like ChatGPT, Claude, Descript, and Grammarly leading in categories such as content creation, project management, and meetings​​.

5. Measurable Business Impacts: AI has led to tangible business results, including significant savings on hiring writers and actors, launching multiple podcasts, and handling 70% of customer chats entirely through AI​​.

Download the full report here.

What a week for tech! Google and OpenAI unveiled major updates. While OpenAI’s announcements are more general and consumer targeted—effectively putting Siri on notice—I want to focus on Google’s announcements as they hold significant implications for SMB execs and operators.

In Brief: The Information put it well, "OpenAI is venturing into bold new territories with AI, while Google opts for a more conservative approach."

My Take: Google's innovation often ends up as mere rhetoric. Despite frequent promises, we’re still waiting on many “soon to launch” projects including AI announcements from the past 12 months. Given their history of discontinuing products and delayed releases (remember the AI Restaurant Reservation Maker still not released 6 years later?), Google ranks low on my trust scale for delivering impactful AI solutions ahead of the rest of the (very, very competitive) pack.

But enough opinions. Here’s what they announced that will be useful for businesses when they launch:

• An AI teammate that lives inside Google workspace to do collaborative tasks (video)

  • This is my fav of the announcements. Google's AI Teammate (along with Microsoft’s inevitable version) will redefine project management, setting a trend where single individuals, with AI support, might manage million-dollar operations.

• An email agent to sort through multiple conversations, files to answer questions (video)

• An email agent to continuously organize all receipts in your inbox into a spreadsheet (video)

Interested in more?

Google’s full keynote lasted 2 hours, but The Verge made a condensed 17-minute video highlighting the key points.

Microsoft just released their 2024 Work Trend Index Annual Report, which is full of insights and data on the rise of AI in the workplace.

If you don’t have time to read it, here’s three important takeaways:

1. AI Adoption Among Knowledge Workers:

   • 75% of global knowledge workers are now using generative AI, nearly doubling in the last six months.

   • 46% of these users started using AI less than six months ago.

2. BYOAI (Bring Your Own AI) Trend:

   • 78% of AI users are bringing their own AI tools to work, particularly prevalent in small and medium-sized companies.

   • Across generations, 85% of Gen Z, 78% of millennials, 76% of Gen X, and 73% of boomers are using their own AI tools.

3. Leadership and AI Training Deficit:

   • Despite 79% of leaders recognizing the need for AI adoption to stay competitive, 60% worry their organization lacks a clear plan and vision for AI implementation.

   • Only 25% of companies plan to offer training on generative AI this year, highlighting a significant training deficit.

Okay, that’s all for this week. Lots more to share next time on the automation side but until then, take care! 👋