How Small Businesses Can Use AI to Save Time and Boost Productivity

Blog post header

Practical AI Applications for Small Businesses

I recently led a workshop on AI applications for small businesses with 1-10 employees. Here’s what you need to know to start using AI effectively without major investment or technical expertise.

What AI Can Do for Your Small Business

During the workshop, I demonstrated several practical applications you can implement today:

Content Creation and Marketing

  • Generate first drafts of blog posts and newsletters that you can refine
  • Create social media captions in minutes rather than hours
  • Use Midjourney with specific style guidelines for consistent branded images

One strategy I use myself is content repurposing – I mine my podcast archive using AI to extract insights and create new content, maximising return on content I’ve already created.

Business Operations

  • Generate live meeting notes and create concise summaries
  • Reduce proposal writing time from hours to 15-20 minutes with customised AI tools
  • Draft responses to common email inquiries and organise your inbox

Strategic Applications

  • Get valuable strategic advice by feeding business context to AI
  • Create specialised tools for prompt creation, sales documents, and text shortening

Custom GPTs: Your Personal AI Assistants

In the workshop, I showed how to create custom GPTs (personalised AI tools with specific instructions):

  • Prompt Creator: Helps write effective AI prompts
  • Sales Document Builder: Generates proposals based on your business specifics
  • Text Shortener: Condenses content while keeping key information
  • Business Coach GPT: Provides strategic advice based on your business context
  • Content Tools: For writing LinkedIn posts, blog content, etc.

These custom GPTs are valuable because they contain your specific business knowledge, streamline repetitive tasks, and provide consistent outputs based on your requirements. Creating them is straightforward – give the GPT a name, icon, description, and instructions about how to handle specific tasks.

Three Types of Prompting

I’ve identified three effective approaches to communicating with AI:

1. Simple Prompting

Basic commands like “summarise this article” or “generate a list of ideas.” These work for straightforward tasks but often need refinement.

2. Conversational Prompting

Natural dialogue with AI, explaining context as you go. For example, I might discuss blog post ideas while working on other tasks, building context through conversation.

3. Structured Prompting

Pre-written, formatted prompts for consistent results. This is especially useful for complex tasks. I use the GOAL framework:

  • Goal: Define specific outcome
  • Output: Specify format and style
  • Additional context: Provide background information
  • Look at results and refine

For businesses that need reliable outputs, structured prompting using templates can save significant time.

Which AI Tools Should You Start With?

In the workshop, I covered several AI tools:

  • ChatGPT: Great all-rounder with voice and image capabilities in the Plus version
  • Claude: Excellent for longer content and handling larger documents
  • Microsoft Copilot: Integrates well with Office products
  • Gemini: Strong capabilities for creative tasks

For small businesses just starting, ChatGPT or Claude offer the best balance of capabilities and ease of use.

5 Critical Warnings Before You Start

Before implementing AI in your business, be aware of these important limitations:

  1. AI makes confident mistakes: It sometimes gives wrong answers while insisting they’re correct. Always fact-check important outputs.
  2. Built-in biases exist: AI systems can reflect biases from their training data, so review content for unintended biases.
  3. Over-flattery is common: AI tools tend to be overly complimentary. Don’t let AI feedback replace real customer input.
  4. Context limitations matter: Each AI tool can only process a limited amount of text at once.
  5. Skills are uneven: AI might excel at writing sophisticated content but struggle with basic tasks like counting – what experts call the “jagged frontier” of capabilities.

Getting Started: Your 3-Step Action Plan

Start with this simple approach:

1. Identify Your Time-Drains

List repetitive tasks that consume your time but don’t require your unique skills:

  • Drafting routine emails
  • Creating social media content
  • Summarising documents or meetings
  • Writing first drafts of marketing materials

2. Experiment with One Tool and One Task

Pick one AI tool and apply it to one specific task from your list:

  • Use ChatGPT to draft responses to common customer inquiries
  • Try Claude to summarise your team meetings
  • Use AI to create social media content for a week

3. Evaluate and Expand

After two weeks, assess:

  • How much time did you save?
  • Was the quality acceptable or did it require significant editing?
  • What was the learning curve like?

Based on your findings, refine your approach or expand to additional tasks.

The Bottom Line

For small businesses, AI tools aren’t about replacing human creativity – they’re about reducing time spent on routine tasks so you can focus on what matters: serving customers, developing your team, and growing your business.

The most successful small businesses find the right balance between AI efficiency and human touch.

Start small, stay practical, and use these tools to serve your business goals.

What AI task will you try this week?

[Download workshop report]

💡
Your AI Transformation Starts Here
Get The Free AI Toolkit for Strategic Breakthrough Zero Guesswork, Maximum Impact
💡 Your AI Transformation Starts Here:

Get The Free AI Toolkit for Strategic Breakthrough
Zero Guesswork, Maximum Impact

Get Instant Access
Written by Alastair McDermott

I help leadership teams adopt AI the right way: people first, numbers second. I move you beyond the hype, designing and deploying practical systems that automate busywork - the dull bits - so humans can focus on the high-value work only they can do.

The result is measurable capacity: cutting processing times by 92% and unlocking €55,000 per month in extra productivity.

More posts like this.

Bridging the Divide Between Human and AI
AI Strategy

Where Do You Draw the Line on AI and Stolen Work?

My book was scraped to train AI. Yet I still use these tools every day. The fact that big tech corporations have stolen the intellectual property of small creators makes many people – including me – uncomfortable. One of my books was

Bridging the Divide Between Human and AI
AI Strategy

The Big 4 Just Validated the Future of AI-Driven Work

The Big 4 have finally caught on: AI isn’t replacing people, it’s helping us get smarter and faster at what matters EY released a massive 100+ page report early Dec 2025 called “The Augmented Workforce.” Source: EY Studio, “The Augmented Workforce: A

Bridging the Divide Between Human and AI
AI Strategy

Misleading AI Stories in 2025

Everyone’s worried about AI slop, AI hallucinations, and misinformation. But the slop and misinformation that actually moved markets and changed business decisions this year came from peer-reviewed journals, MIT and Harvard researchers, and books from major publishers with fact-checking teams. Consider: a

Bridging the Divide Between Human and AI
AI Strategy

Navigating the Chaos: How to Prepare for AI Disruption

AI is advancing faster than our institutions can respond. This gap is already causing chaos. Not just disruption, but systemic breakdown. It’s the pacing gap: one line on the graph is AI capability, rising exponentially. The other is how businesses, governments, and

Bridging the Divide Between Human and AI
AI Strategy

Why Talk About ROI First?

When I talk with clients about tech projects, I talk about Return On Investment (ROI) before I ever talk about the actual technology. I do this to solve a problem most engineers don’t even acknowledge: we love building the wrong thing really

Bridging the Divide Between Human and AI
AI Essentials

How to Use AI for Professional Writing

My Workflow for Using AI Without Losing Authority I use AI for a huge amount of my high-stakes professional writing now. Not because it’s smarter than me… ok, I mean, it is, but… But it handles the parts of writing I find

Get regular updates on AI strategies that work.

You're almost there!

I turn AI tech & strategy into clear, actionable insights. You’ll discover how to leverage AI, how to integrate it strategically to get a competitive edge, automate tedious tasks, and improve business decision-making.

– Alastair.