The Practical AI Opportunity: Why SMBs Want Guidance Before Automation

Artificial intelligence (AI) has rapidly moved from experimental technology to business necessity. Yet for many small to mid-sized businesses (SMBs), the most valuable AI applications are not futuristic autonomous agents or complex automation tools. Instead, they are practical solutions that help owners manage expenses, improve cash flow visibility, create budgets and make better financial decisions.

New PYMNTS Intelligence research suggests that SMB demand for these capabilities is already outpacing what many credit unions (CUs) currently offer. The challenge is no longer whether AI belongs in the member experience. It is how institutions can deploy it in ways that create immediate value while laying the groundwork for future innovation.

• SMBs Want Practical AI Guidance
• Credit Unions Face an AI Execution Gap
• Start Small, Scale Smart
• From AI Awareness to AI Action

SMBs Want Practical AI Guidance

Demand for AI among SMB members is already strong, particularly among growing businesses seeking practical tools to manage increasingly complex financial operations.

SMB demand for AI exceeds demand among consumers.

The pattern is consistent: Businesses with higher revenue and stronger profitability show the greatest appetite for AI-enabled financial tools. For credit unions, that concentration of demand among higher-value SMB segments represents a meaningful member-acquisition and growth opportunity.

Business owners want practical help, not futuristic automation.

For the most part, SMBs are not seeking fully autonomous financial systems. Instead, they want practical tools that reduce complexity and put better information in front of them. PYMNTS Intelligence found that 31% of SMBs are interested in AI-powered expense tracking, while 22% want help with budgeting, cash flow management, supplier discovery and financial-product comparisons. These priorities align closely with the everyday challenges business owners face.

Goldman Sachs research tells a similar story: 76% of small businesses already use AI in some capacity, yet only 14% report fully integrating AI into their operations. This indicates that adoption is widespread but still focused on targeted use cases, not comprehensive automation.

For CUs, the takeaway is clear: SMBs are looking for guidance, efficiency and better financial insight. Institutions that position AI as a practical adviser instead of a substitute for human decision-making may be best positioned to meet member expectations.

Credit Unions Face an AI Execution Gap

Most credit unions understand AI’s strategic importance, but deployment priorities have not yet fully aligned with member demand.

CUs view AI as a growth strategy but not yet a top investment priority.

The gap is narrowing, but member expectations are moving quickly.

Research from Cornerstone Advisors shows a dramatic increase in chatbot deployment at credit unions, from just 3% in 2019 to 46% in 2026. Meanwhile, PYMNTS Intelligence estimates that by 2029, nearly half of top-tier CUs will offer AI chat and financial-advice capabilities, with middle-tier institutions rapidly closing the gap. Starting from a lower baseline, emerging CUs are projected to post the strongest growth of any tier, reaching adoption rates of up to 41% across core financial service capabilities.

The challenge is that member expectations are evolving just as rapidly. SMBs are growing accustomed to AI-enabled experiences elsewhere in their operations and may soon expect similar capabilities from their FIs.

Digital friction is creating risk for business-member retention.

Falling behind on AI deployment carries risks beyond missed innovation opportunities. PYMNTS Intelligence research indicates that some credit unions are already losing business members because of digital-friction issues that could be addressed through improved technology and service delivery.

Those losses reflect a broader pattern. Digital experience is a benchmark by which business members frequently assess their financial institutions, and AI capabilities are becoming part of that assessment. Institutions that treat AI as a separate technology initiative rather than an integral part of their digital-readiness strategy may find themselves exposed on multiple fronts, including member retention, acquisition and long-term competitiveness.

Start Small, Scale Smart

Rather than pursuing ambitious AI transformations, CUs can create near-term value by deploying advisory tools first and expanding capabilities over time.

Conversational AI provides the most logical starting point.

This finding suggests conversational and advisory AI tools represent a practical starting point. They address immediate member needs while allowing institutions to build experience, trust and operational knowledge before introducing more advanced capabilities. By focusing first on financial guidance rather than automation, CUs can generate measurable value with lower implementation risk.

Modernization should be evolutionary, not disruptive.

Successful AI adoption does not require wholesale replacement of existing systems. Velera Senior Vice President of Product Experience and Enablement Cody Banks describes the better approach as using a “chisel versus a sledgehammer.” That means making selective upgrades that improve capabilities without disrupting operations.

Velera’s Atmos platform illustrates this philosophy in practice. As an intelligence orchestration layer, Atmos translates data from across member touchpoints into practical insights and real-time decision support, giving credit unions AI-ready infrastructure without requiring them to rebuild from scratch. Rather than treating AI as a self-contained initiative, institutions can integrate it into broader modernization efforts that improve flexibility and readiness over time.

Partnerships can accelerate AI readiness.

Few CUs possess the resources necessary to build every AI capability independently to meet member demand. Partnerships therefore represent one of the most practical pathways to adoption. PYMNTS Intelligence research suggests partnership models can compress what would otherwise be multiyear innovation timelines into months—a meaningful advantage in a market where member expectations are moving quickly.

Those partnerships can take many forms. Credit union service organizations (CUSOs), FinTech providers and technology partners can provide access to specialized expertise and proven solutions. As a CUSO, Velera offers credit unions shared platforms, unified data environments and embedded intelligence, helping institutions accelerate deployment while reducing implementation risk.

From AI Awareness to AI Action

The question facing credit unions is no longer whether SMB members want AI. The data suggests they already do. The more important question is where to begin. Institutions that focus first on practical financial guidance, conversational assistance and everyday money-management tools can create immediate member value while building the trust, data foundation and operational readiness needed for more advanced AI capabilities over time.

PYMNTS Intelligence offers the following actionable roadmap for CUs looking to implement the AI capabilities SMBs demand most:

• Start with advisory AI use cases. Prioritize conversational assistants, budgeting support and expense-management tools that align with SMB needs.
• Integrate AI into broader digital modernization efforts. Treat AI as part of a larger strategy to reduce friction and improve member experiences rather than as a standalone technology initiative.
• Leverage partnerships to accelerate deployment. Work with CUSOs, FinTech providers and technology partners to gain access to expertise, infrastructure and AI capabilities that may be difficult to build internally.

Credit unions that focus on practical member outcomes instead of technology for its own sake will be best positioned to earn trust, deepen relationships and meet SMB members where their expectations already are.

As AI reshapes the financial landscape, the real differentiator for credit unions won’t be how quickly they adopt new technologies, but how intentionally they guide their members through this transition. Small businesses are looking for partners who can help them navigate complexity with clarity, not just tools. Credit unions that embrace this responsibility will be best positioned to deliver meaningful, day-to-day support small business members are already seeking.”