Empowering SMBs: how AI and collaboration tools are shaping the future of work

Today’s small and medium businesses (SMBs) are equipped with a suite of new tech tools which are helping founders navigate the digital landscape. Yet, meeting customer demands has never been more challenging for business leaders due to rising expectations, omnichannel complexity, workforce constraints, and data overload.

Customers expect instant, personalized support, requiring businesses to balance automation with the human touch while ensuring seamless experiences across multiple platforms.

Beyond increasing customer demand, SMBs also grapple with mounting competition and an uncertain economic climate, further complicating their path to success. So how can SMB leaders choose the right tools to thrive in 2025?

The AI-powered SMBs

One powerful tool at their disposal is Artificial Intelligence (AI). Research shows that a quarter of SMBs in the UK (25%) are already incorporating AI tools into their operations, with readily accessible virtual assistants like ChatGPT being the most frequently mentioned technologies.

AI is now a technology that is practical and easily accessible, even for small businesses. This is largely due to advancements in hardware innovations, cloud computing, and open-source platforms. For one, the hardware that’s capable of handling AI functionalities is cheaper and more accessible than ever before.

It’s also important to note that flexible payment models offered by cloud solutions make it easier and more affordable for SMBs to break past the cost barrier. Additionally, AI tools aren’t as expensive to make as they used to be, with techniques like transfer learning - in which AI models draw knowledge from pre-trained models - contributing to lowering the overall cost of AI solutions.

For SMBs, AI tools can deliver in various important ways, from chatbots that can assist with customer service to generative AI tools which can contribute to the brainstorming process. For micro businesses such as electricians or yoga teachers, such tools can provide an invaluable ‘sounding board’ for everything, from devising a business strategy to creating a social media content calendar.

Document summarization tools powered by generative AI, can help time-pressed small business leaders keep on top of their email inbox, while automated meeting notes mean that leaders can keep track of action items and coordinate their teams.

Enhanced collaboration

As the demand for an inclusive and flexible work environment grows - where remote and in-office employees have equal access to seamless communication - SMBs are increasingly investing in advanced collaboration technologies. According to the latest reports, the global collaboration software market is projected to grow from $5.8 billion to $19.86 billion between 2022 and 2032.

This growth is driven by factors such as the increasing popularity of remote work, the rising adoption of cloud-based collaboration solutions, and the growing need for real-time communication and collaboration tools.

By streamlining communication, AI-enhanced collaboration tools can help to reduce digital noise, integrate file-sharing, messaging and project management into simple platforms, which helps teams to keep track of activity and drive business success.

Even in businesses such as retail and hospitality, which rely on in-person interactions, unified communication software means that teams can work together more effectively, offering a central place where managers and employers can access contacts, notes, documents and action points from meetings.

For small businesses, this offers key advantages such as being able to schedule intro calls with prospective customers easily and easily create webinars to build their brand. For both managers and employees, AI-powered collaboration software helps to unlock other significant benefits - allowing employees to personalize their work processes, automate repetitive tasks and focus on higher-value activities.

This leads to higher productivity, improved job satisfaction and better engagement. Over time, this improves customer service and drives results for the whole business.

Smart future

Technology tools have already helped many leaders to streamline their business, liberate founders from having a physical workspace, improve communication with customers and better internal support services - proving to be an effective choice.

The rise of AI and smart collaboration tools has enabled a new generation of tech-enabled SMBs to thrive despite economic turbulence and ever-more demanding customers. Over the long haul, we can anticipate AI to offer tailored recommendations to small business leaders as they work, with personalized advice enhancing work efficiency by advising on strategies and tools. Embracing such tools, and new and developing technologies, will help small businesses thrive this decade.

We've featured the best productivity tool.

This article was produced as part of TechRadarPro's Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro