How entrepreneurs are using AI to grow smarter in a slowing economy

Artificial intelligence is becoming a trusted tool in the everyday operations of small businesses. But today, it’s not just about productivity gains. According to new data from GoDaddy, many entrepreneurs are rethinking what success looks like and using AI to build sustainable, right-sized businesses—even in the face of economic uncertainty.

AI can even assist entrepreneurs in starting a new business. In fact, according to the GoDaddy Small Business Research Lab 2025 US National survey, 44% of microbusinesses agree that Gen AI will help them compete with larger businesses.

Small businesses adapt to uncertain economy

The research shows that while 49% of U.S. small business owners expect the national economy to weaken in the next six months, 66% still expect revenue growth for their own ventures. Many are choosing to remain intentionally small—40% now say they want to stay solo, a trend that’s grown over the past year.

This signals a shift in entrepreneurial mindset. Rather than scale for scale’s sake, small businesses are focused on building sustainable operations—and AI is one tool helping them do that.

AI improves efficiency

In this new landscape of leaner growth, AI is playing a critical role in helping entrepreneurs save time and make smarter decisions.

Business owners who are already utilizing AI to run their business are working more efficiently. The Spring 2025 US National survey of more than 2,000 small business owners found that microbusiness owners (those with 10 employees or less) are using generative AI for everything from content creation and marketing to customer service and boosting sales.

Practical uses for AI in running a small business include:

• Virtual assistants—AI can save businesses time by handling customer or patient needs, including scheduling appointments or routing complaints;
• Email and marketing campaigns—AI can quickly craft personalized, targeted outreach to different audiences and markets;
• Employee recruitment—Businesses can utilize AI to handle initial resume screening to weed through a high volume of applicants and find the most qualified candidates.

The AI revolution goes beyond big tech

The concept of artificial intelligence has been around for centuries, but it was not until the past few years that the AI revolution really took off. Big tech companies like Microsoft, Alphabet and Apple launched the explosive growth in AI with major infrastructure investments, but small businesses now regularly use the technology, too.

According to a study by GoDaddy Small Business Research Lab with UCLA Anderson, small business owners are already benefiting from using AI technology, but there is still an opportunity for growth.

Study findings include:

• A significant 72% of small business owners using AI tools reported increased productivity, while 61% observed higher revenues in the past six months.
• Despite the increase in usage of AI tools, 38% of microbusiness owners cited a lack of knowledge about AI, signaling an opportunity for education in 2025.

AI growth spurs strong local economies

The economic outlook for 2025 is uncertain, but experts agree the embrace of AI and its potential productivity boom will be a bright spot for the U.S. economy this year.

The growth of AI will also benefit local economies as more small businesses begin to adopt the technology to run their shops, offices and distribution centers.

“Small businesses using AI tools are transforming local economies through job creation,” said Alexandra Rosen, economist and global head of the GoDaddy Small Business Research Lab. “With small businesses already creating seven jobs per entrepreneur on average, this additional boost from AI presents an unparalleled opportunity to strengthen local and national economies. New emerging technologies are empowering small business owners to launch their businesses faster, create jobs, and grow local economies.”

From acting on ‘The White Lotus’ to an AI-assisted small business launch 

Walton Goggins is best known for starring in streaming hits like “Fallout” and “The White Lotus,” but Goggins has another new role on his resume: small business owner.

According to a recent Rolling Stone article, “the actor may be modest about how tech-savvy he is, but Goggins has long had an entrepreneurial streak.”

Walton Goggins Goggle Glasses was launched in 2024 and was recently featured in a Fast Company article and podcast interview. In it, he shared his experience launching his business and how he used AI to help.

“I’m a big believer in small business owners and what they do for their families and for communities,” said Goggins. “I like writing copy. I like writing texts and emails. But when it comes to communicating with an audience that you’re trying to reach for a product, it’s hard to formulate those thoughts in a vacuum. There’s also an element to this experience that allows you to capture some images and then repurpose those images. All of a sudden, that social pressure of producing things that are outside of your product is taken off the table for you. You don’t have to think about it.”

Whether launching a business from scratch or adapting to a tougher economy, today’s small business owners are proving that resilience doesn’t mean doing more—it means doing what matters. And with AI tools now accessible at any stage, the future of entrepreneurship is leaner, smarter, and more resilient.

This story was produced by GoDaddy and reviewed and distributed by Stacker.