British entrepreneurs are increasingly turning to artificial intelligence tools for the business advice they would have previously received from their peers.
That’s according to the new Peer Power study from American Express, which surveyed 500 founders and owners of UK-based small and medium-sized businesses.
Twenty-six per cent of respondents admitted that AI bots had provided them with the type of business advice their human peers might have given to them in the past.
Digging into the reasons behind this trend, American Express found that 33 per cent of business owners just don’t have time to attend networking events and are therefore getting advice from generative AI.
But not all entrepreneurs using AI tools for business advice are purposely avoiding human connections. For 22 per cent of respondents, there just aren’t enough business networking events happening locally. So, they’ve felt the need to get advice elsewhere.
Although AI usage among business owners is growing, the vast majority of this community agrees that networking and forming connections with fellow humans is vital to their business success.
Some 78 per cent of respondents said networking had positively impacted their companies. Meanwhile, 83 per cent said advice gained from their peers had improved their confidence in the business decisions they make.
For many entrepreneurs, times of business hardship can prompt them to reach out to their network for help and advice. That is clear by the fact that 71 per cent of respondents say a strong peer network has a vital role to play in getting them through business challenges and crises.
Looking ahead, 74 per cent of respondents said they’d like to keep growing their network of fellow human business owners in the next 12 months. And 75 per cent said the importance of human networking will likely grow as their businesses do.
The human connection seems more important to entrepreneurs than ever, with 48 per cent feeling like they don’t have enough people with whom they can discuss their biggest business concerns.
The study also found that, for 38 per cent of small business owners, discussing business challenges with their industry peers is their preferred choice over friends and family, as fellow business owners are more likely to understand.
Ruchi Sharma, vice president of UK commercial at American Express, said: “Connectivity and networking have always been a powerful growth driver for small businesses. While Generative AI is an invaluable tool for sourcing information and driving efficiency, it can’t replace the depth of insight and lived experiences that comes from strong peer relationships. For small business owners, building their professional networks should remain a top priority.”
