Embracing AI: Small and Midsize Businesses Optimistic for 2024
Small and midsize businesses are increasingly optimistic about their economic prospects for 2024, with a decreased expectation of a recession. A notable shift is the growing inclination to adopt Artificial Intelligence (AI) in various business operations, reflecting a positive outlook and resilience despite past economic uncertainties and challenges.
Summary
- Economic Outlook: The J.P. Morgan 2024 Business Leaders Outlook survey shows a more optimistic view among small and midsize business leaders regarding the 2024 economy, with fewer leaders expecting a recession compared to previous years.
- Survey Details: The survey, conducted from mid-November to early December, involved around 1,800 business leaders from companies with annual revenues ranging from $100,000 to $500 million.
- Recession Predictions: Approximately 40% of midsize and 51% of small business leaders believe a recession may occur in 2024, a decrease from 65% and 61%, respectively, last year.
- National and Regional Economic Views: Midsize businesses show a divided outlook on the national economy, while small businesses are less optimistic than last year. However, both groups are more positive about their regional and local economies.
- Company Performance: A majority of the leaders, 69% of small businesses and 67% of midsize businesses, feel positive about their company’s performance.
- Persistent Challenges: Common concerns include labor issues, uncertain economic conditions, revenue growth, rising interest rates, and inflation.
- Technology and AI Integration: Many businesses are considering or already using AI in operations, communications, accounting, finance, and human resources. About 46% of small businesses plan to incorporate AI tools.
- Resilience and Adaptability: Business leaders demonstrate resilience and adaptability, having become adept at managing crises and recovering from challenges.
- Small Business Optimism: Small business owners remain optimistic, expecting to withstand economic difficulties and predicting revenue increase in 2024.
- Survey Context: This survey and its findings are set against the backdrop of economic challenges faced in 2023, including banking industry disruptions, geopolitical risks from two wars, and sustained macroeconomic challenges.