Generative AI Readiness

Written By Alex Davis

The traditional wisdom is “AI is only as good as your data infrastructure.” The State of AI in Business 2025 report pushes back on that. The authors argue that SMBs don’t need pristine infrastructure to benefit. What matters is execution in workflows, ROI focus, and partnerships, not building perfect data lakes or golden datasets.

Here’s your SMB AI Readiness Checklist to cross the AI Divide:

SMB AI Readiness Checklist

Crossing the GenAI Divide for Small and Medium Businesses

1. Workflow-First Mindset

  • Identify high-volume, repeatable tasks (compliance checks, document processing, agency spend)

  • Prioritize operational efficiency over “moonshot” pilots

  • Start with pain points surfaced by frontline managers

2. Empowered Frontline Leadership

  • Managers have autonomy to test, adopt, and champion AI tools

  • Culture encourages experimentation and rapid iteration

  • Early adopters (“prosumers”) become internal trainers and guides

3. Vendor Partnerships Over Custom Builds

  • Default to buy/co-develop rather than in-house builds

  • Evaluate vendors on adaptability, trust, and workflow integration

  • Seek tools that learn from context and improve with use

4. ROI Measurement from Day One

  • Define cost-saving or revenue-generating metrics before pilot launch

  • Back-office automation ROI examples:

    • BPO elimination → $2–10M annual savings

    • Agency spend cuts → 30% lower costs

    • Risk/compliance automation → $1M+ savings

  • Separate “time saved” from P&L impact

5. Basic Digital Hygiene (Table Stakes, Not Perfection)

  • Core business data digitized and accessible (CRM, ERP, Finance)

  • Cloud and API connectivity possible (but doesn’t need to be mature)

  • Cyber basics: MFA, vendor governance, secure access

6. Urgency & Competitive Positioning

  • Recognize that enterprises are moving faster, with vendor lock-in advantages

  • SMBs must act within the next 12–18 months to avoid structural disadvantage

  • Goal: Deploy adaptable, context-retaining tools now — not after perfecting infrastructure

Reach out to our contact or booking page to learn from our AI experts explore how your SMB matches against our checklist

Alex Davis