AI Basics for SMB Leaders: Demystifying Myths & First Steps

Why You Should Keep Reading

A spring 2025 Pew Research Center survey found that 43 % of U.S. adults believe AI will do them more harm than good, while another 33 % simply aren’t sure—hardly the mindset that fuels confident investment. Pew Research Center If that sounds familiar, this primer is for you.

1 | Decode the Jargon in 90 Seconds

TermPlain‑English TranslationQuick Win
Machine LearningSoftware that learns patterns from data.Use it to auto‑categorize invoices.
Large‑Language Model (LLM)A text‑prediction engine (e.g., ChatGPT).Draft customer emails in seconds.
Model DriftAccuracy erodes as data changes.Schedule quarterly accuracy checks.

2 | Top 4 Myths—Busted

  1. “AI is only for tech giants.” Cloud APIs start at $0.01 per call.

  2. “We need a data‑science team.” Off‑the‑shelf tools embed ML behind drag‑and‑drop.

  3. “AI replaces jobs.” It replaces tasks; staff move to higher‑margin work.

  4. “Ethics can wait.” A one‑page policy now prevents PR and legal pain later.

3 | Three Starter Activities (Low or No Budget)

  1. Publish an internal “AI curiosity” newsletter—one use‑case a month.

  2. Map pain points: list any task eating ≥ 5 staff hours per week.

  3. Host a “tool‑tasting” demo day—free trials of chatbots, forecasting plug‑ins, analytics add‑ons.

Executive Cheat‑Sheet

  • Learning beats waiting; small experiments de‑risk big bets.

  • Data quality is your first capital expenditure.

  • Ethics and governance scale trust.

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