Small businesses are leveraging artificial intelligence not just to automate tasks but to gain a crucial commodity: time. With holiday spending at small and midsize businesses projected to reach $109 billion this year, new data reveals that those adopting AI are reclaiming 20 or more hours per month—time that translates directly into essential working capital during the busiest shopping season.
Timing is everything. Half of these businesses rely on holiday sales to make their annual target, and with the season accounting for up to 50 percent of yearly revenue, every extra hour represents potential income. Hours spent unproductively become missed sales and thinner margins.
For retailers navigating a compressed holiday shopping window, the ability to promptly respond to inquiries or extend store hours can be the difference between a sale and a missed opportunity. AI adoption is creating this very bandwidth:
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58% of AI-using SMBs save more than 20 hours each month
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66% report monthly savings between $500 and $2,000
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84% are open to automating marketing content creation
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90% see more efficient operations after AI integration
These efficiency gains free owners from repetitive tasks like invoicing and scheduling, allowing them to invest saved time back into inventory management, advertising, and enhanced customer engagement exactly when demand peaks.
Holiday shoppers are responding. AI tools will guide 39% of shoppers this season—a 70% increase from last year—while 41% plan to do their shopping at small businesses, up from 36%. Their preference reflects values like community support (48%), product quality (45%), and personalized service (36%). The time AI saves empowers SMBs to meet these expectations by enabling faster responses, better staffing, and tailored follow-ups.
“When shoppers are using AI to narrow choices, the competitive win isn’t about replacing people, it’s about giving teams back the hours they need to deliver on promises,” says Anirudh Agarwal, CEO of OutreachX. “That reclaimed time is the critical differentiator. It allows small teams to answer questions in minutes, not hours, and personalize follow-ups during the busiest time of the year.”
The mobile shopping surge adds urgency. With 65% of consumers shopping via smartphones and SMBs expecting 40% of holiday online sales to come from mobile, every friction point at checkout or in communication risks lost sales. AI helps by automating invoicing and reminders, freeing human energy to focus on nuanced customer service moments that build loyalty.
This year, saved time isn’t a luxury but a lifeline. Ninety-three percent of SMBs view holiday sales as critical, while most see competition rising from big-box retailers and other small businesses alike. By combining AI-powered time savings with customer loyalty and mobile convenience, small businesses can ensure their promotions go smoothly, inventory moves faster, and customer service stays sharp even as inquiry volumes swell.
The 2025 holiday season marks a turning point. AI’s promise has moved beyond theory—demonstrating tangible time savings during the period that matters most. Small businesses that weave AI-driven efficiency into their holiday strategies will lead on service and sales, while those who don’t risk falling behind.