AI tools for small business: Top 10 ways to leverage AI for growth

AI is no longer just a buzzword; it’s a tool for business growth.

In fact, a report by McKinsey found that 78% of survey respondents say their businesses use AI in at least one business function. In 2023, just 55% of survey respondents said their business uses AI.

For entrepreneurs and small business owners in beauty, wellness, and beyond, the right AI marketing tools can save hours of manual work, cut costs, and open new opportunities to engage customers.

Whether you’re launching a new skincare brand or scaling your salon’s ecommerce store, here’s how to use AI to work smarter and not harder, because really, that’s what we’re all searching for.

1. Automate customer service with AI chatbots

Save time by using AI-powered chatbots to answer customer FAQs, suggest products, and handle common issues 24/7. 

• Why it matters: Leveraging AI for customer service tasks can not only reduce response times but also improve the customer experience and free up more of your time to focus on more critical tasks.
• Tools to check out: Tidio, Intercom, and Zendesk. 
• Pro tip: Personalize chatbot greetings with customers’ names and product history to create a custom experience at scale (and make customers feel more connected to the brand).

2. Boost conversions with AI-powered personalization

AI tools for small businesses can recommend products, send tailored emails, and adjust pricing based on customer behavior.

• Why it matters: Personalized product suggestions through AI marketing tools can increase AOV (average order value) by up to 30%.
• Tools to check out: Klaviyo’s predictive analytics, Shopify Magic, and Constructor. 
• Pro tip: Segment your audience by skincare type or purchase history to show each shopper exactly what they need.

3. Level up content creation with AI copy & design

If you’re wondering how to use AI for business, leveling up your content creation is a go-to. AI-powered platforms help beauty brands create social posts, blog formats, ad copy, or product descriptions in minutes.

• Why it matters: AI for copy and design keeps your brand's content consistent and on-brand without needing a large creative team.
• Tools to check out: Canva’s Magic Design, Copy.ai, and Jasper.
• Pro tip: Use AI-generated templates for Instagram Reels or YouTube covers, and packaging mockups to stay visually cohesive.

4. Forecast inventory with AI demand planning

As with any beauty brand, you need to manage inventory. Luckily, AI automation tools can support this. Inventory management platforms use AI to predict seasonal spikes (think holiday skincare bundles).

• Why it matters: AI inventory management platforms help prevent overselling or stockouts, saving money on holding excess inventory. 
• Tools to check out: Cogsy, Shopify, and Sumtracker.
• Pro tip: You can take most inventory management software one step further by connecting it with your POS and ecommerce platforms for real-time forecasting.

5. Optimize ad spend with AI marketing tools

Next up, we have ad optimization. If you’re running ads for your beauty business but don’t have either the time or experience, AI marketing tools are here to help. Platforms use machine learning to serve your ads to the right audience at the right time.

• Why it matters: Using AI automation for advertising helps to cut wasted ad spend and boosts ROI by focusing on shoppers most likely to convert.
• Tools to check out: Meta Advantage+, Google Ads Smart Bidding, and StackAdapt.
• Pro tip: We recommend you test different creatives early, AI learns faster when it has a variety of assets to optimize.

6. Automate bookkeeping & admin

There’s nothing we dislike more than bookkeeping and admin, but it’s also vital. So lean on bookkeeping AI tools for small businesses to make it just a little easier. Reconcile transactions, flag anomalies, and predict cash flow through AI automation.

• Why it matters: Save hours on admin and give yourself more confidence in the data-driven business decisions you make. 
• Tools to check out: QuickBooks, FreshBooks, and Planful. 
• Pro tip: Automate monthly financial summaries to track marketing ROI and seasonal product trends.

7. Strengthen customer loyalty with predictive retention tools

As we’ve discussed in previous blogs, customer loyalty is critical within today’s beauty landscape. And AI marketing tools can help with this by personalizing experiences, triggering retention campaigns, and analyzing customer behavior. 

• Why it matters: Keeping existing customers is cheaper (and more profitable) than constantly acquiring new ones, so leveraging AI to efficiently retain your audience is key.
• Tools to check out: RetentionX, Chargebee, and Bloomreach. 
• Pro tip: Offer personalized discounts or “You’ll love this next” product suggestions based on past purchases.

8. Accelerate product development with AI trend analysis

Understanding what’s going on in the industry is an effective way to get ahead and stay relevant to customers. AI automation can help spot emerging beauty trends like ingredient spikes (niacinamide, peptides) or seasonal aesthetics (e.g., “Chaotic Beauty”).

• Why it matters: Using AI to spot these trends shortens time-to-market for trend-driven products and gives you a competitive edge.
• Tools to check out: Spate, Google Trends, and Trendtracker.
• Pro tip: Pair trend data you get from AI marketing tools with customer surveys to validate demand before launching new products or campaigns.

9. Enhance visual branding with AI image & video editing

If you don’t have a designer or editor on your team and aren’t equipped to take this role on yourself, AI design tools can be a huge asset to help with background removal, retouching, product staging, and video creation.

• Why it matters: Your visual identity feeds into how customers perceive you. Thus, high-quality mockups, product shots, and imagery help to drive higher engagement.
• Tools to check out: Remove.bg, Runway, and Canva. 
• Pro tip: Use AI background removal for logos and product photos to keep your feed consistent and polished.

10. Use AI for smarter pricing strategies

One of my favorite ways to use AI tools for small businesses comes down to pricing strategies. Why? Because they’re tough to nail down. Dynamic pricing tools can monitor competitors’ prices and suggest optimal pricing for your own products.

• Why it matters: Support in your pricing strategy helps you stay competitive while protecting your profit margins.
• Tools to check out: Prisync, Minderest, and Intelis. 
• Pro tip: Combine AI pricing with your email marketing to run targeted campaigns like “back-in-stock” or flash sales.

Leveraging AI tools for small businesses

You’ve probably seen the divide over whether you should or shouldn’t use AI in your business. But let us remind you, AI isn’t about replacing the human touch; it’s about amplifying it. 

By automating routine tasks and gathering relevant insights, AI lets you focus on creativity, innovation, and customer relationships. And arguably, these are the things that truly grow your beauty brand.

To get started, just begin with one or two of these tools that solve your biggest pain points, and watch how much faster you can launch, grow, and adapt in 2025.

Ready to scale your business the smart way?