70% of small and midsized businesses are stuck in the “experimental” or “opportunistic” phase of AI adoption.
Not deploying. Not scaling. Experimenting. Stuck in what I call AI purgatory, the gap between “we know AI matters” and “we’ve actually made it work.”
The SAS/IDC report broke the numbers down: only 9% of SMBs have fully embedded AI into strategy and operations. 40% haven’t started at all. The primary barrier? 77% of non-adopters say they see no applicable use case for their business.
That number keeps me up at night. 77% can’t see how AI applies to them, in a year when 41% of all code globally is AI-generated and 92% of developers use AI daily. The technology is everywhere, and three out of four SMB leaders think: “not for me.”
They’re not wrong that the current ecosystem isn’t serving them. They’re wrong that AI doesn’t apply.
Here’s the pattern: they tried ChatGPT, maybe gave Copilot a spin, possibly had someone vibe code a prototype. They saw interesting results. They couldn’t figure out how to make it systematic. So they went back to running the business the way they always have.
That’s purgatory. Aware enough to feel behind. Not equipped enough to move forward.
The encouraging data buried under the bleak headline: 87% of SMBs that do use AI report positive business impact. The technology works when deployed correctly. The problem is the deployment, not the tool.
SMBs don’t have data engineering teams. They can’t afford six-figure consulting engagements. The entire AI readiness ecosystem was built for enterprise. The HVAC company with 30 employees, the regional law firm, the restaurant group, they’re invisible to it.
Vendor-led deployments succeed 67% of the time versus 33% for internal builds. That’s not because vendors are geniuses. It’s because they bring structure.
70% are stuck. The way out isn’t a tool. It’s a path.
THIS CAME OFF THE BUILD FLOOR.
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