Understanding the Power of AI for Small Businesses
In a landscape dominated by headlines warning of the potential dangers of artificial intelligence (AI), the genuine benefits it offers—especially for small businesses—often go unnoticed. On September 16, 2025, Balaji Padmanabhan and Norma McCowin from the University of Maryland’s Smith Business School provided a critical perspective during a session designed for journalists covering how small businesses can integrate AI technologies.
Clarifying the Misconceptions Around AI
As Padmanabhan, director of the Center for AI in Business, articulately stated, “When great AI works, it should look like magic.” However, the underlying logic is more deterministic than mystical. Understanding this logic is key for small business owners who may be intimidated by the technology. AI can seem daunting, but it presents vast opportunities for increasing productivity, particularly for the 99 percent of American companies classified as small enterprises.
The Transformational Benefits of AI
During the session, Padmanabhan emphasized that AI excels at swiftly accumulating and analyzing data, a process that involves sophisticated algorithms learning through experience. “(Modern systems) are powered by massive amounts of data as well as this learn-by-experience paradigm called reinforcement learning,” he explained. This means that AI can sift through data—picking up patterns that even trained professionals might miss—transforming industries such as healthcare, where data overload is a daily challenge.
AI as a Superpower in Your Business Toolkit
Rather than viewing AI as a replacement for human roles, Padmanabhan suggested thinking of it as a “superpower in your pocket.” AI can handle routine information processing, allowing human employees to redirect their focus toward more complex challenges that require emotional intelligence and nuanced understanding. While he acknowledged the potential for AI to make errors—sometimes significant—he argued that the right approach recognizes the need for human oversight in tandem with automated intelligence.
“It should be our superpower,” he affirmed, emphasizing that AI should enhance human performance rather than replace it.
The Importance of Hands-On Support for Small Business Owners
Norma McCowin, chair of the Master of Information Systems Advisory Council at UMD, echoed Padmanabhan’s insights during the session and shared her personal experience. After enrolling in various courses on small business and AI, she was inspired to start her own business venture, where she now works closely with others in her community.
She described a hands-on approach where her team collaborates with small business owners who fear AI, guiding them through its practical application. “What we do is we sit down with small businesses who are afraid of what they are hearing about AI and show them exactly how AI can make their life easier,” McCowin said.
By empowering these owners with open-source tools and methodologies, McCowin helps them streamline operations, eliminate redundancies, and create value—a crucial aspect for maintaining competitiveness in today’s market.
Building Future-Ready Businesses with AI
The panel underscored the need for ongoing support and education around AI technologies, particularly for small businesses. Through workshops and collaborations with graduate students, initiatives like McCowin’s seek to demystify technology and make it accessible.
By translating complex AI concepts into practical strategies, small businesses can learn how to leverage these tools for real-world benefit. This not only enhances operational efficiency but also allows them to focus on growth and innovative solutions tailored to their unique challenges.
A Call to Action for Small Business Owners
As AI continues to evolve and reshape industries, small business owners should consider how this powerful technology can work for them rather than against them. By embracing AI as a strategic ally and investing in education and support, they can unlock new pathways to efficiency, creativity, and profitability.
The future of small businesses may well lie in their ability to harness the superpower of AI, enabling them not just to survive but to thrive in an ever-changing marketplace. With the right mindset and tools, small businesses can transform challenges into opportunities for growth.
