As small business owners continue to find ways to best use AI applications at their companies, new entrepreneurs are discovering how AI technology can help launch their startups.

Although there isn't a lot of data available, there is some evidence that indicates entrepreneurs and newer businesses, at the very least, are more inclined to experiment with AI technology, writes New York Times business reporter Sydney Ember in a recent story on the topic.

In a survey of new business owners by the payroll and benefits platform Gusto, 22 percent – or about a fifth – reported using generative AI in their operations. The survey revealed as the Gusto New Business Formation Report, polled more than 1,300 entrepreneurs who started businesses in 2023.

"These tools, such as ChatGPT, can generate texts, images, or other content in response to prompts," the report says. "And 13 percent of survey respondents are either developing new AI technologies themselves or integrating AI directly into one or more features of their products."

Also, a "working" research paper published in April by the National Bureau of Economic Research found a "more prevalent use" of AI by young and small firms compared to earlier data. 

A potential explanation for the relatively high use rate, the researchers say, is the accelerating use of generative AI among these small firms and the introduction and availability of similarly less expensive, general-use technologies.

The research paper used data from the U.S. Census Bureau's Business Trends and Outlook Survey to track AI usage among businesses and is associated with the research program of the Center for Economic Studies (CES).

"We see that businesses that use AI typically utilize it for marketing automation, virtual agents and chatbots, natural language processing and data/text analytics," the paper says.

Small business owners are using affordable and user-friendly AI applications to make data-driven decisions, automate routine tasks, and engage customers more effectively. Also, if you want to learn more about AI applications being used by businesses in specific industries, such as the food and beverage sector, see this blog.

New Entrepreneurs and AI

According to research available, such as the Gusto survey and reporting by The New York Times, entrepreneurs and new businesses are using generative AI to more efficiently carry out tasks such as market research, contract reviews, bookkeeping and job postings.

For some entrepreneurs, generative AI has been a "game changer," declares Ember in the Times article.

"It is helping them write intricate code, understand complex legal documents, create posts on social media, edit copy and even answer payroll questions," she writes. "The result, they say, is that A.I. allowed them to get their companies off the ground more quickly, and more efficiently, than they would have without it."

As an example, Ember cites what happened when a group of entrepreneur students at Carnegie Mellon University used AI technologies to create their startups last spring after professor Sean Ammirati encouraged students to do so for the first time since teaching the course.

By semester's end students had successfully used ChatGPT, GitHub Copilot and FlowiseAI to help with marketing, coding, product development and recruitment of early customers, recounts Ammirati for the Times story. 

"In 14 years, I've never seen students make the kind of progress that they made this year," he says.

Time to Celebrate Entrepreneurs

For more than a decade, November has been designated as the month to give recognition to entrepreneurs across the country, including on November 19, Entrepreneurs Day, which is celebrated annually on the third Tuesday, which is November 19 this year.

National Entrepreneurs Month recognizes entrepreneurs and the contributions they make to their communities and economy when they start and sustain new companies, including innovative ideas for products, services and processes, the creation of jobs and business development.

Also, there's a designated time this month to acknowledge entrepreneurs in other countries.

"For one week each November, we also recognize the American spirit of entrepreneurship abroad by celebrating Global Entrepreneurship Week," says the U.S. Department of State on its website. "During the week, U.S. embassies and consulates will organize numerous events and inspire thousands of individuals from all backgrounds to follow in the footsteps of generations of American entrepreneurs."