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Small Business, Big AI: How Startups Compete with Giants Using Artificial Intelligence
Subject area: Science,Engineering and Technology · Area of research: AI automation and innovation
Abstract
Nowadays, artificial intelligence (AI) is not the prerogative of large companies that have enormous amounts of money. Small businesses and startups are starting to use AI to find competitive advantages, automate their processes and provide personalized customer experience. In this paper, the author examines how small businesses are embracing the available AI technologies, free models, and cloud applications to establish a competitive edge against established players in the industry. It looks at important spheres in which AI is empowering startups, including the decision-making process that is based on data, automating routine processes, targeted marketing, and product innovation and draws case studies illustrating successful applications. Small firms are also discussed, with some of the issues being a lack of data, recruiting talents, and ethical concerns when using AI. Finally, this study highlights the fact that using AI and innovation tactfully, small companies can use AI to not only survive but also prosper in highly competitive marketplaces, shaking up old business hierarchies in the process.
References
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[2] Bammens, Yannick, and Paul Hünermund. "How midsize companies can compete in AI." Harvard Business Review 6 (2021).
[3] Obschonka, Martin, and David B. Audretsch. "Artificial intelligence and big data in entrepreneurship: a new era has begun." Small Business Economics 55, no. 3 (2020): 529-539.
[4] Mills, Karen G., and Annie V. Dang. "Building small business utopia: how artificial intelligence and big data can increase small business success." In Big Data in Small Business, pp. 11-26. Edward Elgar Publishing, 2021.
[5] Szalavetz, Andrea. "Artificial intelligence-based development strategy in dependent market economies–any room amidst big power rivalry?." Central European Business Review 8, no. 4 (2019): 40-54.
[6] Dahlqvist, Johanna, and Olivia Pivén. "A Race to the Top in the Era of Artificial Intelligence-A Qualitative Study examining challenges & opportunities for small and medium sized Swedish companies in AI adoption." (2020).
[7] Michael, Ogbemudia. "of Artificial Intelligence." The Future of Small Business in Industry 5 (2024): 215.
How to cite this paper
@article{1711583,
author = { Adnan Ghaffar},
title = {Small Business, Big AI: How Startups Compete with Giants Using Artificial Intelligence},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {9},
number = {4},
pages = {1660-1666},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1711583.pdf},
abstract = {Nowadays, artificial intelligence (AI) is not the prerogative of large companies that have enormous amounts of money. Small businesses and startups are starting to use AI to find competitive advantages, automate their processes and provide personalized customer experience. In this paper, the author examines how small businesses are embracing the available AI technologies, free models, and cloud applications to establish a competitive edge against established players in the industry. It looks at important spheres in which AI is empowering startups, including the decision-making process that is based on data, automating routine processes, targeted marketing, and product innovation and draws case studies illustrating successful applications. Small firms are also discussed, with some of the issues being a lack of data, recruiting talents, and ethical concerns when using AI. Finally, this study highlights the fact that using AI and innovation tactfully, small companies can use AI to not only survive but also prosper in highly competitive marketplaces, shaking up old business hierarchies in the process.},
month = {October},
}