Why Your Smaller Company Can Out-AI the Enterprise

Today’s newsletter isn't about a single headline or a breaking announcement. It's about a pattern that's been building across multiple reports over the past few months - one that's worth sitting with, because it challenges assumptions many of us have been operating under.

In a 2025 survey, 72% of CIOs report they're breaking even or losing money on AI investments. It would be useful to understand how that number changes in the coming months. Meanwhile, 88% of small businesses are using AI tools - and 73% say it's been important to their growth.

The companies with the biggest budgets and dedicated AI teams? They're stuck navigating internal politics and process. I see it everyday. The companies everyone assumed were behind? They're already in production with nearly 5 AI tools on average (SBE Council).

If you run a smaller company, relative to your larger peers, you've probably felt behind. You shouldn't.

The Enterprise Friction Problem

Let me be clear: enterprises aren't failing at AI because they're doing something wrong. They're struggling because their systems were built for a different pace.

Gartner's research laid it bare: 60% of CIOs see little return on AI, while 40% see some but want more. And for every AI tool organisations buy, they should anticipate 10 hidden costs - plus training and change management on top.

Looking ahead, Gartner predicts organisations will abandon 60% of AI projects through 2026 - not because the technology failed, but because their data wasn't ready.

Meanwhile, enterprise IT teams are 5x more likely than SMB IT teams to struggle balancing speed, security, and business value when implementing AI.

This isn't a criticism. It's physics. Large ships turn slowly. Legal reviews. Compliance sign-offs. Risk committees that meet quarterly. Vendor selection processes designed for stability, not speed. These exist for good reasons. But AI capabilities evolve every 60-90 days while enterprise planning cycles run annually.

The OECD's December 2025 report on SME AI adoption put it plainly: while 40% of large firms use AI, only 12% of smaller firms do - but that gap is closing faster than any previous technology wave. And crucially, smaller firms that do adopt are moving faster to value.

Your "Weaknesses" Are Weapons

If you're at a smaller company, here's the mindset shift: everything you think holds you back is actually what lets you move.

"We don't have an IT department." Which means you don't have legacy systems holding you hostage. No 20-year-old data architecture to work around. You can adopt tools that simply work, right now.

"We're a small team." Decisions happen over lunch, not in quarterly steering committees. When you see an opportunity, you can act this week - not submit a proposal for next year's roadmap.

"We don't have a formal AI strategy." Neither did the companies winning right now. What they have is permission to experiment. No 18-month pilot requirements. You test something, it works, you scale it. Done.

"We can't afford enterprise AI tools." The best AI capabilities today are available through platforms that cost less than your coffee budget. Claude, GPT-4, Gemini - you get the same models Fortune 500 companies use, often at a fraction of the cost because you're not routing through enterprise procurement.

As one industry analysis put it: "Within the next 6-12 months, it won't be the Fortune 500 leading the charge - it will be small and mid-sized businesses, moving faster, experimenting boldly, and realising results long before large enterprises can even form a task force."

For many enterprises, AI is bolted on. For you, it can be built in from the start.

The Evidence

The SBE Council's October 2025 survey of 530 small business employers found that 88% will increase or maintain their AI investments in the coming year. These aren't exploratory pilots - they're doubling down because it's working.

Small businesses aren't just adopting AI; they're operationalising it. An average of 4.8 AI tools across operations. Marketing, sales, support, back office. Not waiting for permission. Not forming committees. Just moving.

The adoption gap between small businesses and enterprises has shrunk faster than with any previous technology wave - faster than cloud, mobile, or the internet itself.

The Permission You're Waiting For

The real unlock isn't tools. It's permission.

Stop waiting for "the right time." Enterprises are still waiting - and watching their AI investments break even, at best.

Stop building committees when your Monday meeting can serve the same purpose. Stop asking "can we compete with bigger players?" - the data says you already are.

Here's the reframe: You're not behind. You're unburdened.

David didn't win despite being smaller than Goliath. He won because of it. The sling was the technology of the underdog - fast, agile, unconventional.

AI is yours.

The One Thing

This week, name the one process you've been waiting to "get approval" to automate or improve with AI.

Now realise: you ARE the approval.

Start there.

Need Help?

If you're at a smaller company: You have the agility. I help companies figure out where AI creates the biggest edge - without enterprise budgets or 18-month timelines. Let's find your highest-impact starting point.

If you're at an enterprise: I get it - with 25 years experience in the enterprise, I’m uniquely qualified to turn the tide for you. You're navigating real constraints that exist for real reasons. I can help larger organisations untangle where they are, what actually matters, and how to move faster without breaking what works.

Either way: let's talk - https://atomictheory.ai/

The Atomic Builder is written by Faisal Shariff and powered by Atomic Theory Consulting Ltd - helping organisations put AI transformation into practice.