The Practical AI Opportunity: Why SMBs Want Guidance Before Automation

§ 01 Executive Snapshot

• What: Demand for AI among SMBs is accelerating, with credit unions needing to align their deployment priorities with member expectations.
• Who: Small to mid-sized businesses (SMBs), credit unions (CUs), PYMNTS Intelligence, Velera.
• Why it matters: The gap between SMB demand for AI and CU deployment priorities poses risks for member retention and growth opportunities.

§ 02 Key Developments

• 75% of SMBs say they would use at least one AI feature from their financial institutions (FIs) within the next two years.
• 49% of credit unions view AI and conversational assistants as a member-acquisition strategy.
• 31% of SMBs are interested in AI-powered expense tracking, while 22% want help with budgeting and cash flow management.

§ 03 Strategic Context

• Many credit unions acknowledge the strategic importance of AI but have not yet prioritized its deployment, creating a significant execution gap.
• The rapid increase in member expectations for AI capabilities reflects broader trends in technology adoption across various industries.

§ 04 Strategic Implications

• Immediate: Credit unions need to focus on deploying practical AI solutions to prevent member attrition and meet growing demands.
• Long-term: Institutions that effectively integrate AI into their digital strategies will likely enhance member relationships and drive growth.

§ 05 Risks & Constraints

• Potential risk of falling behind on AI deployment, leading to loss of business members due to digital friction.
• Competition from other financial institutions that may adopt AI technologies more rapidly and effectively.

§ 06 Watchlist / Forward Signals

• Expected increase in chatbot deployment at CUs, projected to rise from 3% in 2019 to 46% in 2026.
• Continued evolution of member expectations regarding AI-enabled financial experiences will signal the success or failure of CU initiatives.