Generative AI levels playing field for small businesses, says latest GoDaddy survey

Rhea-AI Summary

In a recent survey by GoDaddy, it was found that 50% of microbusiness owners in the US have used generative artificial intelligence (GenAI) tools in the past few months. 44% of microbusinesses believe that GenAI helps them compete with larger businesses. Usage of GenAI varies across demographic groups, with young and Black microbusiness owners being more likely to use it. Black-owned microbusinesses are almost twice as likely to use GenAI for customer service compared to white-owned microbusinesses.

Positive

• GenAI is helping small businesses compete with larger competitors.

• Young and Black microbusiness owners are more likely to use GenAI for their businesses.

• Gen AI users have a more positive outlook about their businesses and the national economy.

Negative

• None.

Forty-four percent of microbusiness owners believe that generative artificial intelligence will help them compete with larger businesses

TEMPE, Ariz., May 7, 2024 /PRNewswire/ -- More U.S. microbusinesses are using generative artificial intelligence (GenAI) to grow and compete, with 50% of owners and operators recently surveyed indicating they have tried Gen AI tools in the past few months. The findings come from GoDaddy's international research initiative, Venture Forward, which quantifies the economic impact of small businesses and explores their owners' experiences, challenges and ambitions.

The Venture Forward 2024 U.S. National Survey found that 44% of microbusinesses, which have 10 or fewer employees, a domain and an active website, agree that GenAI helps them compete with big businesses.

However, attitudes, long-term goals and use cases that stem from GenAI usage vary across demographic groups. Key findings include: 

• Young (those aged 18-35) and Black microbusiness owners are 50% more likely to have used GenAI for their business in the last several months compared with their white counterparts.
• About one in three Black and Hispanic-owned microbusinesses use GenAI for business while only one out of every four white- and Asian-owned microbusinesses use GenAI for business.
• Those relying on or trying GenAI for their business use it most frequently for content creation, regardless of race or age. However, Black-owned microbusinesses are almost twice as likely as white-owned microbusinesses to use it for customer service.
• Gen AI users have a more positive outlook about their business (81%) and the national economy (40%). This is true for those who have used Gen AI for business. Those who haven't used GenAI tend to have a more negative outlook about both their business (72%) and national economy (36%).

"Generative AI is already showing early potential to help level the playing field for small businesses as they go up against larger and often better-resourced competitors," said Alexandra Rosen, senior director of GoDaddy's Venture Forward research initiative. "We're seeing the most ambitious ones embrace it the fastest."

Explore the survey results, visit https://www.godaddy.com/ventureforward/2024-u-s-survey-results/

For more information on the state of microbusinesses across the country, visit www.godaddy.com/ventureforward.

About GoDaddy Venture Forward 
GoDaddy's Venture Forward research initiative analyzes more than 20 million online businesses with a digital presence (measured by a unique domain and an active website). Most of these businesses employ fewer than ten people, categorizing each as a microbusiness. To find out more about GoDaddy's Venture Forward research, visit: www.godaddy.com/ventureforward   

About GoDaddy 
GoDaddy (NYSE: GDDY) helps millions of entrepreneurs globally start, grow, and scale their businesses. People come to GoDaddy to name their idea, build a professional website, attract customers, sell their products and services, and accept payments online and in person. GoDaddy's easy-to-use tools help microbusiness owners manage everything in one place, and its expert guides are available to provide assistance 24/7. To learn more about the company, visit www.GoDaddy.com. 

*GoDaddy customer survey of more than 3,500 microbusiness owners conducted in February 2024.  

Source: GoDaddy Inc.

 

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SOURCE GoDaddy

FAQ

What percentage of microbusiness owners believe that GenAI helps them compete with larger businesses?

44% of microbusiness owners believe that GenAI helps them compete with larger businesses.

Which demographic groups are more likely to have used GenAI for their business?

Youth and Black microbusiness owners are more likely to have used GenAI for their business.

What is the primary use of GenAI for microbusinesses?

The primary use of GenAI for microbusinesses is content creation.

Where can I find the full survey results?

You can explore the survey results at https://www.godaddy.com/ventureforward/2024-u-s-survey-results/

Where can I find more information on the state of microbusinesses across the country?

For more information on the state of microbusinesses across the country, visit www.godaddy.com/ventureforward.