My radar is always up for how various changes in our society – from public policy to technological advancements to cultural shifts and more – could affect entrepreneurship and our economy. Of course, that includes ongoing investments in and development of artificial intelligence, or AI.
A Harvard Business Review article published this past summer, penned by Jeffrey P. Shay, Donna Kelley, Mahdi Majbouri and Thomas H. Davenport – all professors of either entrepreneurship or economics at Babson College, among other endeavors – offered some intriguing insights.
The authors write, “Our latest Global Entrepreneurship Monitor (GEM) research (surveying more than 2,300 U.S. entrepreneurs) shows that entrepreneurs with growth ambitions – ambitious entrepreneurs – are far more likely to view AI as critical to their business models and future success.”
The authors note that based on their research, a subset of entrepreneurs, whom they, again, call “ambitious entrepreneurs,” wind up driving “the most transformational change,” and add that “only 18% of U.S. entrepreneurs expect to hire 20 or more employees over the next five years.”
The authors explain: “These entrepreneurs stand out: they are over four times as likely to introduce novel products or services compared to those anticipating no hiring, positioning them as catalysts for both job creation and innovation. These ambitious entrepreneurs don’t just aim to grow – they aim to disrupt, scale, and lead. They see AI as critical to accomplishing those objectives. And in accomplishing them, they contribute disproportionately to economic renewal.”
Among these ambitious entrepreneurs, it’s pointed out that “87% anticipate that AI will be critical to their business model and strategy in the next three years. Over 90% expect positive impacts on revenue and growth, with most citing benefits like innovative product and service development, improved productivity and efficiency, enhanced customer personalization, and better risk and compliance management.”
At the same time, these entrepreneurs have some apprehension and limitations. For example, “Top concerns include costs and implementation hurdles (84%), and employee (72%) and/or customer (81%) resistance. Eighty-eight percent cited data privacy as a core concern.”
The GEM findings square with SBE Council’s survey research on the use of AI and the value and positives that entrepreneurs and small business owners derive from these tools. While SBE Council surveys do not distinguish between “ambitious entrepreneurs” and regular ones, adoption among small business employers is widespread – in our most recent survey (October 2025), 88% of small business owners report that they use AI tools. Moreover, 72% agree that AI will have an impact on their specific industry over the next three to five years, and nearly half (45%) believe that impact will be major or transformative. Survey respondents also note the importance of AI to their competitiveness – 74% stated as much. Due to their positive experiences and ROI derived from AI, 90% of small business owners plan to continue their investments in these tools in the next year – 55% report they will increase their AI spend.
The authors of the GEM study offer some practical ideas for AI adoption. One of their points should be foundational: “While AI streamlines workflows and automates tasks, it is not a full substitute for human skill. It excels in processing data, detecting patterns, and executing repetitive or rules-based tasks. Humans bring critical thinking, empathy, judgment, and adaptability—skills machines cannot replicate. The opportunity lies in designing workflows where people and machines play to their strengths.”
They go on to highlight the benefits of entrepreneurs’ getting various employees involved as early adopters of AI: “Done right, employee-led AI adoption doesn’t just boost productivity, it shapes a more agile and innovative culture.”
The authors make the case that the “most successful entrepreneurs will treat AI not just as a tool but as a strategic capability embedded across the business.” They conclude: “Artificial intelligence is no longer the exclusive domain of tech giants. With tools more accessible and implementation costs lower than ever, growth-oriented entrepreneurs are well-positioned to lead. When applied thoughtfully, AI helps small businesses scale faster, operate smarter, and focus human capital on creativity, customer engagement, and innovation.”