AI is transforming business at an unprecedented rate, but for small and midsized businesses (SMBs), it can feel like an arms race dominated by big tech. How do you compete when massive corporations have unlimited resources and AI models trained on mountains of data? You rethink the game.

Heather Leigh Flannery, founder and CEO of AI Mind Systems Foundation, discusses the intersection of AI, privacy, blockchain, and human empowerment. The conversation explores a critical shift in digital transformation—one that SMBs can’t afford to ignore.

The AI Power Shift: Why SMBs Must Act Now

“It has already come to pass that proving our humanity in digital environments is non-trivial,” said Flannery. “We may be interacting with any number of agents and bots, and we ourselves may have our own agents operating in massive new ecosystems.”

This reality poses a challenge for SMBs. As AI-powered marketing tools, chatbots, and automation become widespread, customers will expect more personalized, high-value interactions. SMBs that embrace AI strategically can level the playing field. However, those who delay may find themselves outpaced by competitors who scale faster and respond more intelligently.

The Risk: AI Could Widen the Gap Between Big and Small Businesses

Flannery warns that “there’s already an enormous power asymmetry, but if individuals and small businesses don’t adapt, it will be as if corporations and governments have the powers of gods and we are mere mortals.”

Consider the past two decades of digital transformation: Search engine algorithms prioritized those with the biggest ad spend. Social media rewarded the loudest, not necessarily the most relevant. If AI follows the same pattern, big tech firms will control data, dominate search, and dictate the digital experience.

AI can be a democratizing force if SMBs take control of their data and how they deploy AI in their marketing strategies.

How SMBs Can Use AI to Compete Smarter, Not Harder

Instead of trying to match big businesses dollar-for-dollar in AI investments, SMBs should focus on agility, creativity, and trust. Here are three practical strategies:

1. Leverage AI to Automate the Right Tasks

AI should enhance human capabilities, not replace them. Use AI to free up time for high-value, customer-facing work. That means automating:

• Lead qualification with AI-driven CRM tools
• Personalized email sequences based on customer behavior
• Content creation with AI-assisted copywriting and video editing

“For humans to win, they have to elevate and escalate their activity relative to corporations and governments,” Flannery explained. AI isn’t just for efficiency—it’s for reclaiming time to focus on strategy, relationships, and creativity.

2. Own Your Data and Digital Identity

One of the most significant risks for SMBs is relying too heavily on third-party platforms that control data and visibility. Instead, businesses should:

• Collect and analyze first-party data (website traffic, customer interactions, email engagement)
• Implement blockchain-based authentication to verify AI-generated content
• Build AI-powered chatbots and self-sovereign digital assistants that keep customer data private

Flannery emphasized, “The data economy and the AI economy are one and the same. They are completely intertwined.” This means SMBs need to own their data strategies just as much as they own their brand strategies.

3. Make AI a Competitive Differentiator, Not Just a Tool

Every SMB has something unique—its story, expertise, and approach to customer service. AI should be used to amplify that, not homogenize it. Consider:

• Using AI to analyze customer feedback and tailor messaging accordingly
• Training AI on company-specific knowledge rather than generic market data
• Building AI-driven personalization into customer experiences that feel human, not robotic

“AI is a team sport,” Flannery noted. The businesses that succeed will integrate AI into their existing strengths rather than adopt it as a one-size-fits-all solution.

Take the AI Readiness Quiz: Are You Prepared?

The SMBs that thrive in this AI-driven world will be those that take proactive steps now. To stress-test your organization’s AI preparedness, take our AI Readiness Quiz. It will help you assess where you stand, where you need to improve, and how to start integrating AI into your marketing strategy today.

The future of AI marketing doesn’t belong to the biggest—it belongs to the smartest. Make sure your business is ready to compete.

Interested in learning more about AI? Tune in to the Human-First AI Marketing Podcast for insights from industry leaders.