Small Business Success Story with AI

You know that feeling when you’re wearing multiple hats—owner, marketer, accountant, customer support rep—just to keep a small business running? It’s a classic balancing act, and small-business owners from Durango to Denver know it well. But guess what’s changing the game? Artificial intelligence. Whether you’re a fan of new tech or a die-hard paper-and-pen devotee, AI is slowly but surely nudging its way into how small companies operate every day.

In Colorado, this shift is particularly exciting. At event hosted in December 20204 by the Denver Metro Chamber of Commerce and the U.S. Chamber, attendees heard from Governor Polis, Attorney General Weiser, and a lineup of local entrepreneurs about how AI has influenced everything from marketing to daily workflows. Here’s the kicker: according to a study by the U.S. Chamber of Commerce’s Technology Engagement Center (C_TEC), 42% of Colorado’s small businesses now rely on some form of generative AI. That’s nearly half! So how, exactly, are these scrappy local firms using cutting-edge technology to stay competitive, and what lessons can we all take away?

Stepping Up Without Breaking the Bank

One of the biggest myths around AI is that you need a massive budget or a giant tech team to make it happen. But reality looks different for Colorado entrepreneurs like Drick Bernstine, the CEO behind lifestyle apparel company BE A GOOD PERSON. Drick’s brand collaborates with major names like lululemon and the Denver Broncos, yet his operation stays lean thanks to AI-driven tools. Instead of hiring a dozen new employees to keep up with growth, BE A GOOD PERSON uses tech built into platforms like Shopify and QuickBooks.

Think of it like having a digital Swiss Army knife that handles inventory tracking, processes payments, and even provides data insights. When you’re small but dream big—like collaborating with pro sports franchises—an AI-enabled workflow lets you scale without burning out your team. It’s the difference between working smarter vs. simply working more.

Multiplying Time: The SodaPup Story

Time is every entrepreneur’s scarcest resource, right? That’s why Adam Baker of SodaPup, a manufacturer of U.S.-made dog toys and pet supplies, leaned into AI to automate several routine tasks. From creating product descriptions to answering straightforward customer queries, AI plays the role of an around-the-clock assistant. Even product photography gets an AI-enhanced polish, cutting down on the cost (and headache) of traditional photoshoots.

For Baker, the goal is simple: don’t spend human hours on tasks a machine can handle. Instead, free up the real people on the team to innovate, experiment, or just take a breather. After all, dog toys might be a serious business, but they’re also a fun one—why not let the team enjoy the creative parts instead of drowning in admin work?

AI’s Big Impact on Marketing and Branding

If you’re active on social media, you’ve seen how quickly trends can blow up or fizzle out. Blink too long, and your “fresh” idea is yesterday’s news. Local businesses like CarGari, a peer-to-peer car rental platform founded by entrepreneur Rafael Small, use AI-based tools like Product Studio to produce professional-level social media images from everyday snapshots. The results? Consistent, eye-catching branding, all managed by a small team—no big agency needed.

Meanwhile, deeper analytics tools provide something no generic influencer can deliver: a clear breakdown of who’s engaging with your posts and why. For instance, AI might spot that Instagram Reels featuring behind-the-scenes footage of how you make your jewelry get 40% more engagement than basic product shots. Next time, you’ll know exactly where to focus your energy. It’s like having a data scientist peering over your shoulder, whispering pro tips in real time.

Serving Customers Around the Clock

You’re not going to hang out in your workshop or office 24/7, and that’s okay—humans need sleep. But as any small-business owner can tell you, customers often have questions at odd hours. With AI-driven chat features, you can maintain a helpful online presence day or night.

Take Shopify’s AI-powered chat function, for example. By scanning your site’s product info, policies, and FAQ pages, it can quickly respond to basic questions. If someone asks if your eco-friendly T-shirts are pre-shrunk, the chatbot can instantly confirm it. If the query is too complex, it flags a human team member. That way, potential buyers don’t bounce at 2 AM because they couldn’t find an answer.

Navigating Challenges and Regulations

All this AI adoption doesn’t come without its share of growing pains. Only 37% of Colorado’s small businesses feel prepared for new AI regulations, and concerns range from data privacy to staying up-to-date on how rules might evolve. But here’s the upside: playing by the rules won’t necessarily stifle innovation. It can actually help you build trust with customers who may be wary of tech that feels invasive.

And the rewards? They’re significant. An impressive 84% of the Colorado small businesses already using AI have seen both profit growth and even expanded their teams. Contrary to that old fear that AI kills jobs, many business owners are finding it frees them to focus on new revenue streams or deeper customer relationships—thereby justifying more hires.

Making the Leap to AI

Yes, it can be intimidating to integrate a fancy-sounding technology into your day-to-day. But if Colorado’s small entrepreneurs teach us anything, it’s that AI is far more accessible than most people think. Maybe you start by automating your email replies or letting an AI generate your next wave of blog topics (like how you might be reading now!). The point is, you don’t have to jump in at the deep end. Tackle the tasks that gobble up time first, and see what a difference it makes.

Closing Thoughts

Colorado’s small businesses are finding that AI doesn’t push them away from their roots—it actually brings them closer to their vision. Instead of spending precious hours on repetitive chores, they can dream bigger, reach further, and keep that personal touch that makes them stand out. Whether it’s apparel, pet supplies, or car rentals, these ventures are proving that you don’t need to be a tech giant to make AI a powerful ally.

If you’re eyeing the possibilities but aren’t sure where to begin—or how to stay on the right side of emerging regulations—check in with Managed Nerds. From setting up chatbot solutions to refining your digital marketing strategy, they’ll help you integrate AI in a way that complements your unique business style. Because in the end, AI isn’t about losing your local flair; it’s about harnessing new tools so you can show the world what you’ve got.

Reference

Chamber Technology Engagement Center. (2025, March 6). U.S. Chamber of Commerce. Retrieved March 10, 2025, from https://www.uschamber.com/program/chamber-technology-engagement-center

Crenshaw, J. (2024, December 3). AI is transforming small business: a Colorado success story. Retrieved March 10, 2025, from https://www.uschamber.com/technology/artificial-intelligence/ai-is-transforming-small-business-a-colorado-success-story

Staff, U. C. (2024, October 2). The impact of technology on U.S. small business. U.S. Chamber of Commerce. Retrieved March 10, 2025, from https://www.uschamber.com/technology/artificial-intelligence/the-impact-of-technology-on-u-s-small-business