What AI Tools Should a Small Business Use? How to Choose the Right AI for Your Business
Updated: Aug 25
Updated August 2026: AI has changed considerably since I first wrote this article in 2025, and so has the way I use it in my own business and implement it for clients. The original version of this article focused much more on individual AI products and what each one could do. After another year of using these tools every day, testing different approaches and implementing AI in real small business environments, I think there is a much better place to start.
What are you actually trying to accomplish with AI?
ChatGPT, Claude, Microsoft Copilot, Gemini, Perplexity and Grok can all be useful, but that does not mean every small business needs all of them or that one platform is automatically the best AI tool for every company. I use more than one AI platform in my own business, and the more experience I get with them, the less interested I am in declaring one universal winner.
The right AI tool depends on the work you want it to help with, the applications your employees already use, the information involved, whether the AI needs access to company systems, how the accounts will be managed and what level of control the business needs around it.
I would choose the job first and the AI tool second.
What Do You Actually Want AI to Do for Your Business?
When a small business owner tells me they want to start using AI, my first question is not whether they want ChatGPT, Claude or Microsoft Copilot. I want to know what problem they are trying to solve.
Maybe employees are spending too much time drafting routine emails and documents. Maybe a project manager has pages of field notes that need to become a useful report. Maybe the owner wants help researching a topic or working through a complicated decision. Maybe the company wants AI to work with information already stored in Microsoft 365. In other situations, the real opportunity is not another chatbot at all. It may be automating repetitive administrative work that consumes hours every week.
Those are different problems, and they can lead to different technology decisions.
If your business wants to... | I would start by evaluating... |
Write, brainstorm, analyze information and work through everyday business tasks | General purpose business AI platforms such as ChatGPT and Claude |
Research current topics and work from cited web sources | Perplexity and other AI research tools |
Work more closely with Outlook, Word, Excel, Teams, SharePoint and other Microsoft 365 information | Microsoft Copilot and the Microsoft 365 environment underneath it |
Work primarily inside Google Workspace | Gemini and the AI capabilities available within the company's Google environment |
Research information where current web or X content is particularly relevant | Grok and other platforms with current web and social search capabilities |
Give employees a managed AI environment | Business, team or enterprise offerings with appropriate administration, identity and data controls |
Build repeatable AI workflows | Platforms that support projects, skills, agents or comparable reusable workflows |
Automate multistep work involving files and applications | Agentic AI and automation tools, with considerably more attention to permissions, isolation and human review |
Connect AI directly to company systems or information | Security, identity, permissions, data handling and governance before choosing based on features |
The last row is one I think business owners need to pay particular attention to. Asking an AI tool to help rewrite a marketing email is very different from connecting it to SharePoint, Outlook, company files or another business system. As the AI gets more access, I spend more time looking at the environment underneath it.
What Is the Best AI Tool for a Small Business?
There is not one answer I would give every business.
ChatGPT may be a great fit for one company. Claude may make more sense for another. A business heavily invested in Microsoft 365 may have a strong reason to evaluate Microsoft Copilot. A company working primarily in Google Workspace may want to look closely at Gemini. Perplexity may be interesting when research and source discovery are central to the job. Grok has its own business offerings and may be worth evaluating for use cases where its particular capabilities fit.
I would not choose among them because one company released an impressive demo or because a particular AI model won a benchmark this month. This market moves too quickly for me to think that way.
I want to know what the business needs the technology to accomplish.
ChatGPT or Claude for Small Business?
I use both.
That is probably the simplest answer I can give to one of the questions I hear most often. I use ChatGPT Business and Claude in my own IT business, but I do not use them interchangeably for everything. I have found different strengths in each depending on the type of work I am doing, and my preference can change based on the task in front of me.
That experience is one of the reasons I do not think small businesses should begin with the question, “Which AI is better?”
A better question is, “Which one is better for what I am trying to do?”
I recently wrote an entire article about ChatGPT Business vs. Claude for Small Business: Why I Use Both in My Own IT Business. Rather than recreate that comparison here, I would point someone there when the decision has already narrowed down to those two platforms.
The larger lesson is that a business does not have to pick an AI company and then force every problem into that company's product. I do not approach the rest of business technology that way, and I do not think AI should be any different.
Where Does Microsoft Copilot Fit for a Small Business?
Microsoft Copilot deserves serious consideration when a company already works heavily inside Microsoft 365, particularly when the goal is for AI to work within Microsoft's applications and business environment.
But this is also where I start asking questions about the Microsoft 365 environment underneath the AI.
If employees have access to SharePoint sites, folders or other company information they should not still be able to access, introducing AI does not correct those permissions. AI can make information someone already has permission to access easier to find and work with.
That is why I increasingly connect AI planning with the work I do during a Microsoft 365 Tenant Security Review. I want to understand identities, SharePoint permissions, outside access, connected applications and the other pieces of the Microsoft environment before assuming that deeper AI integration should be the first step.
This does not mean Microsoft Copilot is inherently unsafe. It means the environment underneath it matters.
Where Does Gemini Fit?
Gemini deserves consideration particularly for businesses that already work heavily within Google Workspace and Google's broader ecosystem. Google has continued integrating Gemini capabilities into its Workspace products, so the surrounding environment can be just as important to the decision as the AI model itself.
This is another reason I do not like static lists that rank AI products from first through sixth. A company whose employees spend all day in Google Workspace may evaluate AI differently from one whose entire business is built around Microsoft 365.
The ecosystem matters. The workflow matters. The business need matters.
Where Does Perplexity Fit for a Small Business?
I think about Perplexity somewhat differently from a traditional AI chatbot.
Research and search are a major part of its value. When the job involves exploring a topic, finding current information and following the sources behind the answer, Perplexity is one of the platforms I would consider. Perplexity also offers managed business products, which means a company evaluating it for organizational use should distinguish between employees independently using personal accounts and the business deliberately implementing a managed offering.
That distinction matters beyond Perplexity. The product name alone does not tell me enough about whether I am comfortable using it with business information.
I want to know which account, which plan and which configuration.
That is exactly why I do not tell a business owner that a platform is simply “safe” or “unsafe” without understanding how the business plans to use it.
What About Grok for Business?
Grok belongs in the conversation now too.
It is easy to think of Grok only as the AI associated with X, but xAI also offers business and enterprise products intended for organizational use. Those offerings change the conversation from an employee casually using a consumer account to a business deliberately evaluating an AI platform with administrative and business data considerations.
Grok can also work with current web and X information, which may make it interesting for certain research and monitoring use cases.
Would I recommend that every small business run out and buy Grok? No.
I would not recommend that every business run out and buy any AI product.
I would evaluate Grok the same way I evaluate the others. What problem are we solving? Which plan are we talking about? Who will use it? What information will be entered into it? What systems will it be connected to? What administrative controls does the business need?
The answers matter more to me than the logo.
The AI Platform Is Only Part of the Decision
One of the biggest changes in how I think about AI since writing the original version of this article is that I spend much less time looking only at what the model can do.
The account and environment around the model matter too.
If an employee tells me, “I'm using ChatGPT,” that does not give me enough information.
The same is true if they say Claude, Gemini, Perplexity or Grok.
I want to know:
Is this a personal account or a company managed account?
Which product and plan are they using?
What company information is being entered?
What are the vendor's current terms for that particular offering?
What retention and privacy controls are available?
Does the business have administrative visibility or control?
Is the AI connected to Microsoft 365, Google Workspace or another company system?
What information can that user already access?
What happens to the account when the employee leaves?
Has the business actually approved this use?
That is a much more useful conversation than asking whether “AI uses your data.”
There is no single answer to that question across every AI provider, product, plan and configuration. OpenAI, Anthropic, Google, Microsoft, Perplexity and xAI each publish their own terms and business data commitments. Those need to be evaluated for the actual product a business intends to use rather than generalized across the entire AI industry.
Sometimes a Managed AI Workspace Is the Right Answer
I recently implemented Claude Teams for a construction company, and that project is a good example of why choosing the platform is only one part of a successful AI rollout.
The owner had already experienced the value of AI personally and wanted to bring it to his employees. I did not simply purchase seats and send everyone a login. We worked through how the employees actually operate, what they wanted AI to help with, what information should not be entered, how authentication would work, how the team environment would be structured and how employees would learn to use it.
I document the full implementation in How I Set Up Claude Teams for a Small Business. The important lesson here is that the product was selected because it fit the client's work. The governance and implementation were then built around how that particular business needed to use it.
I would rather implement a smaller number of tools that employees understand and use correctly than create an environment where everyone has five different AI accounts and makes their own decision about where company information should go.
Sometimes You Do Not Need Another Chatbot at All
My own use of AI has also moved well beyond asking questions in a browser.
I repurposed a desktop computer that had been headed for recycling and turned it into a dedicated automation machine for SNL-Tech Services. I use Claude Cowork on that machine for specific back office workflows, including helping me assemble backup information, security alert summaries, expenses, receipts and mileage information.
I keep that environment separate from my everyday computer because an AI tool that can work through files and perform multistep tasks presents a different risk than an isolated chat. I also remain involved in reviewing the work before information goes to clients.
I wrote about the entire setup in How I Use Claude Cowork to Run My Own IT Business. That project taught me another important lesson about choosing AI: sometimes the business problem is not that employees need a better chatbot. The real problem is repetitive work that should be handled differently.
If the administrative side of a business is consuming hours every week, I want to understand the workflow before assuming another conversational AI subscription is the answer.
Before You Buy Another AI Subscription, Look at What You Already Have
Small businesses can accumulate software subscriptions quickly, and AI is making that easier.
Before adding another one, I would look at what the business already pays for and what capabilities may already exist within those products. Microsoft and Google continue incorporating AI into their business ecosystems, while standalone AI companies continue expanding their business offerings.
That does not mean the AI product bundled into your existing environment is automatically the right answer. I use multiple AI platforms myself precisely because different tools can be better suited to different work.
It simply means I want a reason before adding another subscription.
What do we already have? What are employees already using? What problem are we solving? Does the new product give us something we do not already have? Will employees actually use it? Who is going to manage it?
Those questions can save money, but they also reduce unnecessary complexity.
What If Employees Are Already Using AI?
This is one of the most important questions for a small business owner to ask, because formal AI adoption may not actually be the beginning of AI use inside the company.
An employee can create a personal ChatGPT account. Someone can use Claude to help draft a document. Another employee can research something with Perplexity. Someone else may use Gemini or Grok. None of those actions require the business to purchase an enterprise AI platform or formally announce an AI initiative.
Your company may already be using AI without ever deciding to use AI.
That is where the conversation moves from choosing an AI tool into AI governance.
I go much deeper into that subject in AI Governance for Small Business: What Happens When Your Employees Are Already Using AI. That article covers personal versus company managed accounts, Shadow AI, acceptable use, permissions, company information, employee training and why I want to understand what is already happening before I start writing policies or connecting additional systems.
The two articles answer different questions.
This article asks:
Which AI tools might fit my business?
The governance article asks:
How do we control what happens once AI is part of the business?
A small business eventually needs to think about both.
Should a Small Business Have an AI Policy?
If employees are using AI for company work, I think the business should establish clear expectations around that use.
That does not require a fifty page policy nobody reads. Employees need to understand which AI tools are approved, what types of company information can and cannot be used, whether personal accounts are permitted for business work, when human review is required and what to do when they are unsure.
For businesses in regulated or professionally sensitive industries, the conversation can become more specific because legal, contractual or professional obligations may affect what information can be used with particular systems.
For example, I recently wrote separately about AI Governance for Small Law Firms because attorneys have professional responsibilities that go beyond the general technology questions I address with other small businesses. My role is not to replace the attorney's legal or professional responsibility analysis. My role is to help implement the technology and governance around the decisions the firm makes.
That distinction is important. AI governance needs to fit the actual business.
How Can a Small Business Start Using AI?
I would start small and start with a real problem.
Do not begin by buying six AI subscriptions and telling everyone to experiment.
Pick one or two tasks where AI could realistically save time or improve the way employees work. Determine what information those tasks involve. Look at which platforms fit the use case. Decide how accounts will be managed. Establish the boundaries around company information. Then test the workflow with actual employees and actual work.
A practical starting process might look like this:
Identify the problem. What task is consuming time or creating frustration?
Find out what employees already use. You may discover AI adoption has already started.
Understand the information involved. Determine whether the workflow includes client information, confidential business information or regulated data.
Look at your existing technology. Microsoft 365, Google Workspace and other platforms may influence which AI tools fit naturally.
Evaluate the actual product and plan. Do not assume the free, personal, business and enterprise versions have the same controls.
Establish basic governance. Decide what is approved, what is prohibited and who is responsible for managing it.
Test a real workflow. Determine whether the tool actually saves time and produces useful results.
Keep human review where it matters. Important customer communications, estimates, financial decisions and other consequential work should not become trustworthy simply because AI produced them.
That is much closer to how I approach AI with clients than starting with a software purchase.
Do I Use One AI Tool for Everything?
Definitely not.
I use AI throughout my business, but I also use it for research, planning and personal projects. I have used AI when working through travel and overlanding plans, comparing options, organizing information and thinking through projects outside of client work.
The tool I reach for depends on what I am trying to accomplish.
I do not consider myself a ChatGPT person, a Claude person or a Copilot person. I am interested in which technology fits the job and whether I am comfortable with the information and access involved.
That is the same approach I bring to clients.
If Claude fits a particular workflow, I will say so. If ChatGPT makes more sense, I am comfortable recommending that. If a company works heavily in Microsoft 365 and Copilot fits the problem, it deserves consideration. If Perplexity makes sense for research, we can evaluate it. If Gemini or Grok has a capability that fits the business, those deserve an honest look too.
And sometimes my recommendation may be that the business should clean up permissions, establish governance or simply understand what employees are already doing before it buys anything else.
My job is not to sell someone an AI subscription.
It is to help determine where the technology actually fits.
Frequently Asked Questions About AI Tools for Small Business
What Is the Best AI Tool for a Small Business?
There is no single AI platform I would recommend to every small business. ChatGPT, Claude, Microsoft Copilot, Gemini, Perplexity and Grok have different strengths, integrations and business offerings. The right choice depends on the work the business wants AI to perform, which applications employees already use, what information is involved, how accounts will be managed and whether AI needs access to other company systems.
Is ChatGPT or Claude Better for a Small Business?
Both can be useful, and I use both ChatGPT Business and Claude in my own IT business. I choose between them based on the type of work I am doing rather than declaring one universally better. I cover the differences and my actual use of both in ChatGPT Business vs. Claude for Small Business: Why I Use Both in My Own IT Business.
Is Microsoft Copilot Worth It for a Small Business?
It can be, particularly when a company works heavily in Microsoft 365 and wants AI capabilities integrated into that environment. I would still evaluate the use case, licensing and underlying Microsoft 365 configuration before assuming Copilot is automatically the right choice. SharePoint permissions, identities, external access and other Microsoft 365 controls matter when AI begins working more closely with company information.
What Is Perplexity Good for in a Business?
Perplexity is particularly interesting for research, current information and source discovery. A business should still evaluate the specific account or enterprise product it plans to use, its current data handling terms and what company information employees will use with it.
Can a Business Use Grok?
xAI offers business and enterprise versions of Grok in addition to its consumer offerings. Whether Grok is appropriate depends on the business use case, the particular product and plan, administrative requirements, information involved and whether its capabilities provide a meaningful advantage for the work being performed.
What About Google Gemini for Small Business?
Gemini deserves consideration for businesses already working heavily in Google Workspace and Google's broader ecosystem. As with Microsoft Copilot, I would look at the existing environment and workflow rather than choosing the product simply because the business already uses other services from the same vendor.
Do Small Businesses Need More Than One AI Platform?
Not necessarily. I use several because they serve different purposes in my own work, but every additional AI platform creates another account, subscription and system to manage. A business should have a reason for each tool rather than collecting AI subscriptions.
Can Employees Use Free or Personal AI Accounts for Work?
That should be an intentional business decision rather than something employees decide independently. The company should understand the current terms and data handling of the particular product being used, what information employees are entering and whether a managed business account would provide controls the company needs.
Should My Small Business Have an AI Policy?
If employees are using AI for company work, I recommend establishing clear expectations about approved tools, accounts, company information, human review and prohibited uses. The policy should reflect the way the business actually operates rather than being copied from a generic template.
What Is Shadow AI?
Shadow AI is the use of AI tools inside a business without the organization's approval, visibility or governance. It can include employees using personal ChatGPT, Claude, Gemini, Grok or other accounts for company work without the business knowing which information is being entered or how those accounts are managed.
Is It Safe to Connect AI to Microsoft 365?
It can be appropriate, but I want to understand the Microsoft 365 environment first. An AI platform working within a user's existing permissions does not correct permissions that were already too broad. This is one reason I may recommend a Microsoft 365 Tenant Security Review before a deeper AI integration.
How Should a Small Business Start Using AI?
Start with a specific business problem rather than an AI product. Identify a repetitive or time consuming task, understand what information is involved, determine which tools fit the workflow, establish appropriate rules and test the use case with real work. Expand from there if it produces meaningful value.
Choosing AI Is a Business Decision, Not a Popularity Contest
The AI market is going to keep changing. New models will be released. Features will move between plans. Prices will change. Today's benchmark winner will eventually be replaced by another benchmark winner.
That is why I do not think a useful AI strategy for a small business can be built around picking whichever product appears to be ahead this month.
Start with the business.
What takes too much time? What are employees already using? What information is involved? What software does the company already depend on? What would you actually like AI to accomplish?
Once those questions are answered, choosing the technology becomes considerably easier.
You may discover that one managed AI platform is enough. You may discover, as I did in my own business, that different tools are better for different jobs. You may discover that the biggest opportunity is automation rather than another chatbot. Or you may discover that before connecting AI more deeply into the business, you need to clean up Microsoft 365 permissions, establish an AI policy or simply understand what employees are already doing.
All of those are legitimate outcomes.
At SNL-Tech Services, that is how I approach AI in my own business and with clients. I help small businesses understand where AI fits, evaluate the environment underneath it and establish governance around the technology they decide to use.
The goal is not to use AI everywhere. The goal is to use the right technology where it actually makes the business better.
Additional Resources
OpenAI: Enterprise Privacy
OpenAI explains its current business data privacy commitments, including how business data is handled for ChatGPT Business, ChatGPT Enterprise and its API platform.OpenAI Enterprise Privacy
Anthropic: Claude for Enterprise
Anthropic provides current information about Claude's business and enterprise capabilities, administrative controls, security and data handling.Claude for Enterprise
Microsoft: Microsoft 365 Copilot for Business
Microsoft provides current information about Microsoft 365 Copilot business offerings, capabilities and licensing.Microsoft 365 Copilot for Business
Google Workspace: Gemini
Google provides current information about Gemini capabilities within Google Workspace and its business offerings.Google Workspace with Gemini
Perplexity: Enterprise
Perplexity provides current information about its Enterprise offerings, organizational controls and business use.Perplexity Enterprise
xAI: Grok for Business
xAI provides current information about Grok's business offerings and organizational use.xAI Grok for Business
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