2025 Predictions: The Year of Impact for Small Businesses Using AI

Originally published on GoDaddy Resource Library

By Fara Howard, Chief Marketing Officer at GoDaddy

Looking back on another remarkable year of microbusiness growth, GoDaddy has been inspired by the resilience and innovation shown by entrepreneurs. Despite macroeconomic challenges like access to financial capital and inflation, GoDaddy’s Venture Forward research reveals just how much they continue to shape communities and transform local economies.

As we look ahead to 2025, AI advancements are unlocking new opportunities for small businesses. Tools like GoDaddy Airo™ not only simplify how small businesses launch and thrive online but also contribute to job creation and local economic growth. The true power lies in blending this technology with the unique strengths of entrepreneurs, particularly their personal touch and deep understanding of their customers.

This year, we believe that AI will empower small business owners to build upon what they already do best—build meaningful relationships, anticipate customer needs, and drive business growth. Here’s how:

Predictive Recommendations Will Enhance Customer Connections 
Many small businesses use basic e-commerce tools that suggest products based on past purchases, missing opportunities to truly delight customers. This year, small business owners will lean on AI to predict customer needs more naturally—like recommending a gift idea for an anniversary or a restock for a favorite product. Rather than feeling automated, these insights will amplify the personalized experiences that keep customers coming back.

Finding Hidden Customer Opportunities Will Drive Innovation 
Small businesses have always been great at recognizing customer needs through conversations and intuition based on experience. In 2025, AI will help small businesses spot specific opportunities—hidden patterns and untapped niches—that might otherwise go unnoticed. Whether it’s a growing local demand or a small but loyal customer segment, AI insights will complement the human instinct that sets small businesses apart.

Localized Content Will Deepen Community Roots 
Creating marketing content that feels authentic and local takes time—time many small business owners don’t have. Over the next year, small business owners will use AI to streamline content creation while ensuring it reflects their community’s voices, cultures, and values. Whether it’s a social media post about a local event or an email campaign tailored to seasonal trends, AI will make it easier to stay connected with customers in ways that big businesses can’t replicate.

Real-Time Monitoring Will Keep Businesses Resilient 
Small business owners juggle multiple dashboards and sometimes catch issues only after they’ve grown. This year, AI will proactively flag risks like declining sales or unusual expenses, giving small businesses time to respond before challenges escalate. By providing early insights, AI will act as an assistant that supports resilience and agility.

Smarter Data Insights Will Help Small Businesses Grow 
Many entrepreneurs struggle to turn data into actionable strategies. In 2025, small business owners will use AI to simplify decision-making and uncover clear insights, like the best times to run a promotion or which products customers are loving most. By simplifying these processes, AI will free them to focus on what matters most: serving their customers and growing their businesses.

The Power of Personal Connection + AI 
As discussed during our Microbusiness Summit, small businesses hold an unmatched ability to create personal, lasting connections. While AI continues to evolve, it will never replace relationships built through trust, community, and empathy. Instead, it will enhance the ability to deliver the personal touch that customers love, helping entrepreneurs save time, anticipate needs, and grow in ways that align with their unique strengths.

With 66% of microbusiness owners saying life is better as an entrepreneur and more than half confident in their use of AI tools, 2025 holds incredible opportunities for those willing to explore new tools.

We can’t wait to see how small business owners will use AI (like GoDaddy Airo!) to continue doing what they do best: building businesses with heart, purpose, and a personal touch that big businesses will always strive to replicate.

Here’s to a thriving, connected, and AI-empowered 2025!