US firms call for gov action, fear AI will be weaponised against SMEs
Artificial intelligence (AI) is rapidly shaping customer engagement, but a growing number of US mid-sized businesses are under mounting pressure of being left behind with small players being pushed out the market. Over three-quarters of business leaders are calling for the government to step in to help regulate the growing divide and prevent mid-sized businesses from being squeezed out of the market.
The findings from the AND Digital Winning the intelligent customer report, which polled 250 C-suite and data leaders from enterprise and mid-market businesses, reveal a widespread concern that AI is widening the gap. Almost two-thirds agree that AI-driven loyalty programmes are giving enterprise businesses an unfair advantage compared to their smaller competitors, while nearly three quarters say that without significant AI investment, their organisation has no chance of competing with their enterprise rivals.
AI is disrupting the market by widening the gap between organisations with advanced technology capabilities, and those without. With 72% of respondents saying AI is expanding this divide, companies with stronger data and AI tools are able to deliver more personalised, efficient, and predictive customer experiences. As a result, 73% of businesses believe that future customer loyalty will be dominated by organisations with the deepest technology and data investments.
Cost and complexity ultimately remains a significant barrier to AI adoption, with 55% of respondents saying that the technology required for an effective AI-powered loyalty programme is too expensive, with half of US businesses lacking the internal skills to deploy it safely and effectively.
In response, many businesses are trying to keep pace by investing quickly rather than wisely, with almost three-quarters prioritising spend over fixing fundamental data issues. This rush is a risk, as poor-quality data undermines AI performance and raises serious compliance concerns.
Rick Boyce, Chief for Engineering at AND Digital: "AI is fundamentally changing the rules of customer engagement, but the gap between what large enterprises and smaller businesses can deliver is widening, not because of a lack of innovation, but due to unequal access to high-quality data, skills and advanced technology.
"This imbalance is putting immense pressure on smaller businesses to adopt AI quickly, sometimes before their data foundations are ready, which can lead to poor outcomes and increased risk. If we want a truly competitive and fair digital economy, we need to support mid-sized firms in overcoming these barriers, whether through investment, education, or regulation. AI is a transformative technology that should be an enabler for all, not a wedge that widens the divide."
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