In the genAI era, SMBs have the chance to drive at 90mph while industry competitors struggle to pivot their big ships. While large enterprises focus on AI-driven productivity efficiencies, smaller businesses can leapfrog them with a human-centric strategy that drives their future of work.

I’ve always had a soft spot for SMBs, and it is a primary reason I formed StarCIO. SMBs face the same technology challenges and opportunities as larger enterprises. Most SMBs have technical debt, security challenges, compliance requirements, and the imperative to improve customer experiences. But SMBs face harder choices because they generally don’t have the budget, skills, or partnerships to invest in technology the same way large enterprises can.

How SMBs excel in the genAI era

Several weeks ago, I asked experts a key question. What are the key future of work technologies that drive competitiveness, innovation, and culture change in SMBs and small enterprises?

I was pleasantly surprised with their responses. Their answers didn’t focus on specific technology, data, AI, or automation implementations. Instead, they all commented on how SMBs should focus on people, especially customers and employees, as key force multipliers in a more competitive world.

Here’s why

• SMBs have to transform their customer experiences. But doing so may be easier when they have fewer product categories and customer segments than larger competitors.
• SMBs have to build AI change management programs. But execution should be easier and faster, with fewer employees, compared to larger enterprises.
• SMBs have to improve data quality and develop their AI governance. But there should be less complexity in rolling out policies and getting employees on board.

Here are five expert insights on how SMBs win in a human-centric future of work.

1. Prioritize AI that drives customer focus.

“For small retailers, the future is about technology that automates back office complexity so owners can spend more time on the store floor,” says Andrew Stern, CEO of Quilt. “We’re seeing a real shift in how specialty retailers work day-to-day. Tasks like inventory tracking, staff scheduling, and customer communication that take time away from consumer-facing work are now handled by systems that don’t require tech expertise to use and that enhance the human experience customers get when they go to a small business.”

My recommendation: In my article covering 50+ expert predictions, I stated that AI will have its Uber/Airbnb moment in 2026. All SMBs have the opportunity to disrupt CX with genAI capabilities, and B2C businesses should make it a priority. Use AI and other technologies to enable customer and frontline employee interactions at the core of this strategy.

2. Focus AI in HR on retaining top talent

“Predictive analytics will democratize workforce retention for SMBs by turning data points like attendance patterns and message response rates into actionable insights on flight risk,” says Curtis Forbes, founder & CEO of MustardHub. “The challenge is making this technology accessible through modular solutions that don’t require enterprise budgets or dedicated data teams. For small businesses where losing even a handful of employees can be catastrophic, embedded predictive tools will shift retention from a reactive problem to a proactive operational strategy.”

My recommendation: Employees are frustrated, especially at big companies that have imposed back-to-work policies, laid off workers in 2025, and are driving a “more with less” culture into 2026. SMBs are not immune to talent retention challenges. But they have a lot more to offer when driving collaboration, internal networking, and a lifelong learning culture.

3. Amplify people’s intelligence in using AI effectively

“AI will continue to shape how organizations run more efficiently and effectively, but what will enhance the future of work is when businesses realize that human intelligence is the true key to unlocking actionable AI,” says Marie Aiello, SVP at ContinuumGlobal. “We’re seeing a shift away from chasing every new automation tool without discernment toward using human intelligence to translate AI into repeatable, measurable outcomes that benefit the unique needs of individual business goals.”

My recommendation: At the Coffee With Digital Trailblazers event I host on LinkedIn Fridays at 11AM ET, we emphasize several competencies for succeeding with AI. They include asking questions, promoting creativity, enabling inclusive critical thinking, researching trade-offs, validating facts, and making data-driven decisions. Don’t just throw AI tools at employees; provide them with principles for using them effectively, and then empower experimentation.

4. Provide context, autonomy, and time to pursue value

“The future of work isn’t about adopting every new technology—it’s about adopting the ones that free your people to do their best work,” says Matt Welle, CEO  of Mews. “Unlimited vacation policies, universal equity ownership, and radical transparency only work when you pair trust with tools that eliminate repetitive tasks. The technology that drives competitiveness isn’t the flashiest AI or the newest platform—it’s the infrastructure that gives teams context, autonomy, and time to focus on what actually creates value, whether that’s guest experiences in hospitality or innovation in any industry.”

My recommendation: Much has been said and written about giving employees the opportunity to experiment with AI. Not enough has been said about the importance of providing financial incentives, hybrid work freedoms, and radical transparency. Leaders need to do both, then draft a vision statement that defines business value so that agile teams have the “context, autonomy, and time to focus on what actually creates value.” Well said, Matt!

5. Define the future of work freedoms of location and device

“Three enduring trends are reshaping how companies operate: hybrid work models, SaaS-first strategies, and platform flexibility that lets employees choose their preferred devices,” says Weldon Dodd, distinguished engineer at Iru. “Organizations that can rapidly deploy tools and maintain agility across work environments will consistently outpace their competitors.”

My recommendation: Way too many IT and business leaders focus on what’s right for the organization, too far ahead of what’s needed and desired by employees. Remember, transformation requires a top-down strategy, but it’s bottom-up practices that deliver results. Freedoms are the fuel that drives digital dexterity and productive innovation.

If we’ll see an Uber/Airbnb moment in 2026, my bet is on SMBs, not startups, who will drive the disruption. SMBs can lead the way because AI is reshaping business – but not transforming them yet.