Artificial intelligence has transformed businesses and industries across the world. The profound benefits of AI are not limited to just multinational corporations or large companies. Entrepreneurs are excited about the possibilities of AI and the way that it can empower small businesses and startups to be more competitive.

Small businesses have not hesitated to adopt AI, with 98% using some kind of AI software. Owners are excited about the ways AI can bridge the gap between resources and needs. Free or low cost AI tools can alleviate some of the burdens of day to day operations such as data entry, marketing insights, analytics, and scheduling.

AI benefits both the business and the consumer. Businesses reported that AI is helping them resist inflation and avoid increasing the price of goods. The technology does this by saving time and even identifying ways to make the supply chain more efficient. This is particularly helpful for small businesses, which experience the impacts of inflation much more acutely than their larger counterparts.

The advantages of AI go beyond increased productivity or better metrics; it is making workplaces happier. The U.S Chamber of Commerce reported that 89% of owners say they find running their business to be more fulfilling because of the ways that AI has helped them. By easing the day to day strains often faced by small or new businesses, AI is allowing owners and employees to focus on the work they find most gratifying. Small businesses are empowered to imagine more for their product and mission and focus on long term goals. This, in turn, makes entrepreneurs more optimistic about the future of their brands.

Louisiana is no exception to this trend. Tulane’s Greater New Orleans Startup Report surveyed 126 startups and quantified that 61% of respondents saw AI as the greatest opportunity for their project. The report highlighted businesses like Informuta, a Tulane startup using AI to treat antibiotic resistant diseases. Informuta is garnering national attention and awards for its AI powered work. AI is also supporting Louisiana’s tourism industry, a vital component of our state’s economy. The National WWII Museum in New Orleans is enhancing the visitor experience through interactive AI copies of WWII veterans and was profiled by the Smithsonian Magazine for its innovation. The technology is helping Louisiana industries stand out on a national stage.

State and federal efforts to regulate AI and impose new compliance measures forget that small businesses and startups are often unable to afford these protocols. The data are clear that access to AI is a game changer for these businesses—jobs, communities, and businesses all suffer when it is more difficult to access the transformative effects of this technology. Avoiding excessive red tape and regulation will be vital to ensuring that AI continues to create confidence and success in businesses large and small across the nation.