Data-Driven SMBs Financially Outperform Their Competitors—and the Gap Is Widening

Small and medium-sized businesses (SMBs) are renowned for their innovation and resourcefulness. In competitive markets, their success often depends on how well they differentiate themselves. This is where the buzz around artificial intelligence (AI)—particularly generative AI—comes into play.

Generative AI tools, such as conversational chatbots and coding assistants, promise significant benefits for SMBs. These technologies can enhance productivity, improve customer satisfaction, and drive continuous innovation. However, the effectiveness of AI solutions hinges on the quality of the underlying data. For SMBs eager to harness AI, establishing a robust data foundation is essential.

The rewards of becoming data-driven extend beyond merely adopting AI. Highly data-driven SMBs consistently outperform their competitors financially—and the gap is growing. According to a recent S&P Market Intelligence study commissioned by Amazon Web Services (AWS), data-driven SMBs are significantly more successful. The study found that 65 percent of these businesses outperform their competitors, compared to just 33 percent of their less data-driven counterparts. Data empowers these businesses to make evidence-based decisions, anticipate customer needs, and enhance various operational aspects, from marketing to security.

The impact of a strong data strategy is profound. Highly data-driven SMBs experience substantial positive effects across key business metrics. They report higher customer satisfaction (69 percent vs. 37 percent), greater revenue (65 percent vs. 34 percent), improved process efficiency (65 percent vs. 32 percent), and more effective marketing (61 percent vs. 27 percent). Furthermore, these SMBs anticipate even more benefits in the future, particularly in marketing.

A mature data strategy is crucial for maximizing these benefits. Organizations with well-developed data strategies are 60 percent more likely to financially outperform their competitors compared to those still developing their approach. Data maturity enhances a company’s ability to leverage data, fostering collaboration, robust governance, and accurate forecasting.

AI adoption is also higher among data-driven SMBs. They use AI to boost security (52 percent), enhance marketing and advertising (41 percent), and accelerate content creation (53 percent). These businesses report significant positive impacts from AI across various areas, including process efficiency, revenue, and customer satisfaction.

Despite the growing excitement around AI, many SMBs have yet to fully embrace the advantages of being data-driven. Only 19 percent of SMBs currently consider themselves highly data-driven. Investing in data maturity can provide a competitive edge and prepare SMBs for successful AI adoption.

Now is the ideal time for SMBs to build their data maturity. With affordable cloud infrastructure and modern data strategies, businesses can lay a strong foundation for leveraging AI and transforming their operations. Embracing data-driven practices is not just a strategic move—it's a critical opportunity to stand out in the marketplace and drive long-term success.