Best AI tools your small business should have in 2025

Published on Wednesday 6 August 2025

Table of Contents

• Why AI matters for small business growth
• How AI can help you compete with larger companies
• How to choose the right AI tools for your business
• Best AI tools by business function
• Cost-effective ways to integrate AI
• Overcoming common AI challenges
• Start integrating your AI tools with Xero
• FAQs on AI for small businesses

Key Takeaways

• AI tools help small businesses with automation, efficiency, and growth.
• Start with one area (like marketing or operations) and measure impact before expanding.
• Choose tools based on budget, ease of use, and integration with platforms like Xero.
• Common barriers—like security concerns or staff resistance—can be overcome with planning and clear communication.

Why AI matters for small business growth

AI isn’t just for big companies — it can help small businesses stay competitive and innovative. Businesses not using AI risk inefficiency and missed opportunities.

In the last two years, AI adoption rates have jumped dramatically - McKinsey's state of AI survey indicates that 78% of respondents use AI – a significant increase compared to 72% of respondents in early 2024 and only 55% the previous year. Additionally, 23% of small businesses have embedded generative AI into their business processes.

Here’s what AI delivers:

• cost reduction: automates routine tasks to save labor hours.
• time savings: cuts admin work so your team can focus on growth.
• improved efficiency: minimizes human error and speeds up processes.
• competitive edge: helps small firms close the gap with larger competitors.
• better customer engagement: automates responses and support to improve service.

Many small business owners see the benefits of AI but aren’t sure how to use AI in business or which tools to try. The sheer volume of options can make digital transformation feel daunting — but focusing on your goals makes it easier to find the right fit.

How AI can help you compete with larger companies

AI gives small businesses enterprise-level capabilities. Business automation tools that were previously too expensive, too hard to implement, or too confusing to use are now available to nearly anyone.

AI tools for startups and small businesses give you access to capabilities once only available to big companies. These tools are cost-effective, easy to use, and designed to solve common small business challenges.

How to choose the right AI tools for your business

Pick tools that match your goals and workflows. Here are key factors to consider when choosing the right AI tools for your business:

• budget: think about cost vs return—many tools offer free plans
• ease of use: choose user-friendly tools that minimize training needs
• integration: look for tools that sync with systems like Xero
• ROI potential: focus on tools that help you measure real savings
• global accessibility: ensure tools support remote work and international operations

Best AI tools by business function

Choosing the right AI tools depends on the tasks you want to improve. Here’s a breakdown of popular AI tools for key business areas to help you get started:

AI tools for marketing

AI tools for content creation help small businesses produce high-quality marketing materials quickly and affordably. These tools assist with writing, SEO, ad design, and more.

Jasper : an all-in-one marketing assistant for content creation, SEO, and product descriptions. Plans start at $39/month with free trials available.

Copy.ai: supports content creation, lead generation, and sales forecasting. Offers free tools and paid plans tailored to your needs.

AdCreative.ai: easily create ads with images, videos, and text. Pricing ranges from $39 to $599 per month.

AI tools for social media

AI tools for social media can help you generate ideas, schedule posts, and engage with followers:

Lately: automates social media marketing and employee advocacy. Pricing starts at $199/month for five users.

Pictory : creates videos for social media and websites. Starter plans offer 200 minutes of video for $39/month.

Canva: design eye-catching graphics and ads, with free and paid plans available

AI tools for customer service

Chatbots and similar AI tools can help you automate simple customer service tasks, saving your time for more critical interactions and helping to ensure that customers get speedy responses to their questions and concerns:

Tidio: automate up to two-thirds of your customer service interactions, streamline support, and enable self-service options. Free trials are available, Pricing ranges from about $25/month, to $750/month, to custom packages.

Freshdesk: let AI chatbots work with your team for advanced customer support. Packages range from $15 to $79 per agent, per month, with free trials available.

ChatGPT integrations: all kinds of tools integrate with ChatGPT to help you automate certain aspects of customer service, at a range of price points.

AI tools for productivity and operations

Eliminate manual tasks, save time, and reduce errors with AI-based productivity solutions:

• Fireflies.ai – Record, transcribe, and summarize meetings or other team conversations, with free, business, or enterprise-level subscriptions.
• Otter.ai – Transcribe, summarize, and create to-do lists from meetings and team interactions. Options run from basic (free) to business ($20/month) to enterprise (custom).
• Notion.ai – Harness AI to improve notetaking, communication, and schedules. Search through all business data with a single search engine, and sync other apps for customized workflows. Free to try, $10/month for small teams, $20/month for growing businesses, and custom pricing for enterprises.

Cost effective ways to integrate AI in your small business

The point of AI is to improve productivity, save time, and ultimately – boost profits, but how do you make that happen, especially when you're on a tight budget?

1. Start with low-cost or free AI tools for small businesses.
2. Focus on one area at a time – pick a workflow or department that you want to improve and find a tool to help.
3. Measure results before investing more time or money. How much did you spend? How much time and/or money do you save?
4. Train team members incrementally - keep the rollout slow and steady.
5. Keep investing in more AI solutions as you identify more problems. The more efficient your business becomes, the more your profits will grow.

Overcoming Common AI Challenges

Worried about implementing AI? Here's how to solve some of the biggest concerns:

• Data privacy – Choose tools created by reputable companies, ask how they keep your data secure, and work with your network administrator to ensure everything is implemented safely.
• Implementation complexity – When possible, start with a free demo and get an overview of how to implement the tool so you know what to expect.
• Staff resistance – Make sure staff understand you're investing in tools to help them, not replace them. Provide training to reduce frustration and streamline adoption.
• ROI uncertainty – Start with low-cost or free tiers to ensure a solution can actually help you before committing to a large investment.

According to McKinsey, the companies that see the biggest increase in profits after implementing AI tools have support from the top down. Owners, managers, and team leaders need to be excited and ready to roll if you want to be successful with these tools.

Start integrating your AI tools with Xero

AI tools are ready to help your business grow, and they're getting better by the day. One area where AI can be especially useful is in accounting and data entry – Xero syncs with a wide range of AI tools. Try Xero for free today and see how much time and money you can save.

FAQs on AI for small businesses

This evolving technology is full of potential but also comes with some uncertainty. Let's look at some frequently asked questions.

How can I keep my data secure when using AI tools?

Choose tools that use end-to-end encryption, limit the number of employees with access to sensitive data, and only work with reputable vendors. Also, consult with your IT team (or an outside professional) about security to ensure you adopt best practices and regularly remind your team of security essentials.

What is the best way to measure return on investment from AI solutions?

Before implementing an AI tool, map out existing processes and estimate how much they cost in time and labor. Then, look at how costs and time decrease once you implement the tool. Compare that to the cost of the AI solution.

How can AI tools help my niche or specialized small business?

There are all kinds of AI tools that can support your unique niche – for example, industry- or task-specific tools or solutions that let you customize and automate workflows. However, general tools can also support your niche – they take care of the basics (data entry, marketing, note taking, etc), while you focus on your area of expertise.

Do I need technical expertise to implement these AI tools?

No, most AI tools are designed to be extremely user-friendly and easy to implement. That said, some tools are designed to help specialists.

How quickly can I expect to see results after implementing AI tools?

With some tools, you'll see results instantly. For example, think of the instant time savings you get when you automate invoicing. Others, however, may have a learning curve or other complexities that delay the results.