How AI Can Transform Small Retail Businesses

Rieva Lesonsky
Wed, 26 Feb 2025 19:52:51 +0000
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AI can feel like a tech buzzword that’s only meant for big companies with endless budgets and teams of engineers. But what if AI could work for small businesses, too—making their day-to-day easier, faster, and more efficient?

That’s exactly what UK-based Evermile is doing. Evermile is a platform specifically built for local retailers that automates most of their daily administrative tasks. Omer Goldschmidt, co-founder and CEO, is on a mission to show how AI can be a game-changer for local retailers. Currently only available in the UK, Goldschmidt says Evermile is headed to America and will be available here this year.

If you’re a local retailer, how exactly can AI make your life easier? Goldschmidt explains that and how it can actually transform your small business.

How AI Can Transform a Small Retail Business

Rieva Lesonsky: Why do you believe AI is such a game-changer for small businesses?

Omer Goldschmidt: Small businesses face one tremendous challenge: time. Owners are juggling everything—orders, deliveries, marketing, and customer support—often without the resources of larger companies. This leaves little time for strategy or growth.

AI steps in to automate repetitive tasks, like coordinating deliveries or answering customer inquiries. It’s not just about streamlining operations; it’s about giving business owners the bandwidth to focus on what matters most. For example, Miles, Evermile’s AI agent, automates up to 70% of daily tasks, acting like an extra team member.

AI allows small businesses to operate with the efficiency of companies 10 times their size, leveling the playing field against larger competitors.

Lesonsky: Can you give us an example of how AI works in practice for local businesses?

Goldschmidt: Let’s take delivery coordination, a pain point for many retailers. Today, most businesses manually assign deliveries, switching between spreadsheets, couriers, and phone calls. This process is slow, error-prone, and consumes hours.

With AI, all of this can be automated. For instance, Miles analyzes delivery locations, driver availability, and costs in real time. It then assigns the most efficient and cost-effective option—whether an in-house driver or a third-party courier—automatically. This not only saves time but also ensures a seamless experience for customers.

Another example is customer service. Many businesses struggle to respond to inquiries across platforms like websites, Facebook, and SMS. AI agents like Miles can consolidate all these inquiries into one inbox, providing instant, accurate responses based on live data, such as order status or product availability. It’s like having a 24/7 customer service team.

Lesonsky: What about marketing? How can AI help local businesses there?

Goldschmidt: Marketing is often an afterthought for small businesses because they’re stretched thin. AI changes that by automating personalized campaigns. For example, if a customer hasn’t made a purchase in a while, AI agents can send them a tailored promotion based on their past orders.

AI also uses delivery data to identify trends. If a bakery sees that customers frequently order cakes on Fridays, it can automate promotions for midweek discounts to drive more orders from them. The beauty of AI is its ability to make these decisions in real time, without manual effort.

Considerations Before Adopting AI

Lesonsky: What do small businesses need to consider before adopting AI?

Goldschmidt: AI is only as good as the data it works with. Many small businesses rely on unstructured data—handwritten notes, scattered spreadsheets, or siloed systems—which limits AI’s potential. The first step is to centralize and organize this data.

Another consideration is choosing AI tools tailored to specific tasks. Generic chatbots often fall short because they don’t understand the nuances of a particular business. Task-specific AI is pre-programmed to handle unique workflows, whether it’s managing a florist’s delivery routes or answering product questions for a boutique.

Finally, it’s essential to maintain human oversight. AI should handle routine tasks, but when something complex arises, the system should escalate it to a human. This balance ensures efficiency without losing control.

Lesonsky: Some critics argue that AI is overhyped. How do you address that?

Goldschmidt: I understand the skepticism. AI has been a buzzword for years, and many tools have overpromised and underdelivered. But the difference now is the maturity of the technology. We’re seeing real, tangible results.

For example, one retailer using Miles reduced its response time to customer inquiries by 90% and saved over 15 hours weekly on delivery coordination. These aren’t hypothetical outcomes—they’re real-world impacts affecting the bottom line.

That said, AI isn’t a magic bullet. It’s a tool, and like any tool, its effectiveness depends on how it’s implemented and used.

Future of AI for Small Businesses

Lesonsky: What does the future of AI in small business look like?

Goldschmidt: We’re just scratching the surface. Over the next decade, AI adoption will define small business success. As the technology evolves, we’ll see even more advanced applications, from predictive inventory management to dynamic pricing strategies.

What excites me most is the democratization of these capabilities. AI is no longer just for big corporations. Local businesses can now access tools that were once out of reach, enabling them to compete and thrive in ways we couldn’t have imagined a few years ago.