Small businesses are seeing early gains in AI, but a lack of skills threatens long-term success

Posted on November 3, 2025

By: Tuhin Sarkar

Small businesses report early gains in AI, with 74% of SME AI users citing a positive return on investment. However, 81% of these companies admit that their employees lack the skills needed to sustain these improvements. This finding, according to new research by American Express, highlights a critical gap. While the adoption of AI tools is on the rise, many small businesses are struggling to maximize their potential. It has become clear that adopting AI technology does not automatically mean the skills needed to utilize it effectively. In fact, companies that enjoy early successes in AI find that their initial efficiency boosts tend to plateau quickly without the expertise needed to realize more strategic benefits.

AI adoption is on the rise, but workforce skills are lagging behind

The research reveals that 66% of small and medium-sized businesses are now using AI tools, an increase of 10 percentage points since May 2024. Despite the increasing adoption, 88% of AI users report that they are still learning how to use the technology effectively. This points to a dangerous assumption that simply using AI leads to sustainable benefits. Companies reap early rewards in efficiency, but without the right skills, they risk plateauing. Since basic automation is no longer enough to stay ahead, small businesses need to focus on expanding the capabilities of their workforce.

Capacity choke point: Lack of training is holding SMEs back

Training is not keeping pace with the ambitious adoption of AI. According to the results, the most significant returns so far are narrow efficiency improvements, with 51% of SMEs recording a 10% increase in revenue and productivity. Another 48% say they’ve seen a reduction in errors. But despite these early gains, only 31% of SMEs using AI fund formal training programs for their employees. Another 36% say they plan to invest in skills training in the future. However, this fragmented approach to building capabilities leaves many small businesses vulnerable to the rapid development of AI technology. To truly benefit from AI, companies need to adopt structured and ongoing training to avoid stagnation.

Informal learning: a short-term solution

Many small businesses rely on informal learning methods to bridge the skills gap. 35% of small businesses use online research to learn AI tools, while 23% rely on peer-to-peer sharing. Only 13% of companies offer formal training programs, and only 6% offer expert-led instruction. While these informal learning strategies may help start a business, they are unlikely to keep pace with the rapidly evolving demands of AI technology. With AI roles evolving at an unprecedented speed, companies need a more structured approach to ensure their teams can keep up with the changing landscape.

The skills gap: growing faster than ever

The skills gap is widening at an alarming rate. According to an analysis by PricewaterhouseCoopers, roles exposed to AI are changing 66% faster than other jobs, a pace more than 2.5 times faster than just last year. This accelerating rate of change means that the skills required for AI-related roles are constantly changing, making it difficult for companies to remain competitive. The real difference for small businesses will not be how quickly they adopt AI, but how quickly they learn and adapt. It is those who prioritize continuous learning who will turn today’s AI tools into competitive advantages in the future.

The key to success: embrace continuous learning

Anirudh Agarwal, CEO of OutreachX, points out that small businesses need to focus on building a culture of continuous learning. The ability to learn and adapt quickly will be key to turning AI tools into long-term strategic advantages. He emphasizes that companies that build learning as an ongoing strategic function – rather than a reactive function – will be the ones that stay ahead of the competition. Informal learning can spark innovation, but it is structured training that supports this creativity and allows companies to move beyond basic automation to more advanced applications of artificial intelligence.