Every day, small business owners juggle responsibilities and make a multitude of varied and important decisions, often without the luxury of specialist support to turn to.

The pace rarely lets up and often speed of decision-making is crucial. For many, that means making important decisions on hiring, pricing, suppliers, strategy, and more - often under time pressure.

That is why AI tools are fast becoming a small business leader’s valuable sidekick, according to our recent Peer Power research. It’s clear that small businesses are implementing AI and automated technologies to help free up their time to focus more on added-value activity.

However, for many founders and owners, AI is moving beyond a productivity tool - it is increasingly becoming a source of strategic guidance. The research found that a growing number of business owners now seek guidance from Generative AI platforms they previously would have sourced from fellow business owners.

In this context, the question is not whether AI is useful - it clearly has the potential to unlock opportunities and growth for small businesses. The more pertinent question is how small business leaders can strike the right balance between AI-driven efficiency and the in-person relationships that help contribute to business success.

The business advice gap that AI is moving into

Professional networks have long played a vital role, helping business leaders open doors to new opportunities, providing a sounding board, offering trusted recommendations and advice, and giving founders access to knowledge they could not easily find elsewhere. They have a substantial impact on business success too. Business owners who cite strong peer networks also tend to enjoy improved commercial performance.

Yet, building a network of peers often requires dedicated time and effort – time spent building the right connections or attending in-person events. Both these factors are consistently cited as the biggest barriers to building a strong and lasting network. This means there are clear advantages in leveraging AI to support everyday tasks and decision-making, particularly for founders who are still building their networks.

Whether sense-checking a pricing model before going to market or drafting a proposal to a potential new customer, AI tools can provide an immediate resource where specialist support and experienced peers are hard to access. There is a difference, though, between AI-generated advice and thoughtful reflections from peers who understand the many challenges of running your own business. While AI can provide an answer at pace, its response will lack the insight that can only come from lived experience.

The irreplaceable value of peer networks

The stresses and challenges that keep founders awake at night are rarely ones that can be resolved through a well-conceived AI response. Peer connections provide more than a sounding board. They offer the grounded and honest input, informed by real-world experience and the hard-won lessons that come from building a business through good times and difficult ones – the kind that helps founders think more clearly and make decisions they can feel confident in.

Take cashflow, for example, which is a common source of founder anxiety. Whilst AI can run the numbers and model scenarios, it takes a peer to potentially provide the perspective or reassurance that helps chart a way through specific challenges. That kind of solid advice more often comes from individuals who have been in that situation themselves.

Our research reflects this. It is a consistent finding that the vast majority of owners say business networking has had a positive impact on their business. It is a striking picture, and one that holds up even as AI adoption accelerates. For a generation of business owners now increasingly turning to AI for advice, that figure is a useful reminder of what technology cannot replicate.

Building the modern founder toolkit

As AI becomes increasingly embedded into everyday business decision-making, this makes the case for putting greater focus on personal connection. The two are not in competition - rather, they are complementary. Used well, each compensates for what the other cannot provide.

While AI will play a key role in accelerating research, structuring thinking, quickly filling knowledge gaps and driving efficiency, peer networks offer perspective, mentorship and insight born from experience. Combined, they give founders the capacity to move quickly, and the wisdom to make informed decisions with confidence.

The small business leaders who feel the most equipped for success will be the ones who treat both Generative AI and peer networks as valuable tools to help them grow and navigate the challenges that lie ahead.

This is a philosophy that we have long championed; backing small business owners not just with the tools to run their businesses day to day, but with the insight, connections, and financial firepower they need to grow with confidence.

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This article was produced as part of TechRadar Pro Perspectives, our channel to feature the best and brightest minds in the technology industry today.

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Vice President, UK Commercial at American Express.