How Small Firms Can Stay Competitive in the Age of AI

Money is often one of the main factors that determines what we do. If we’re offered a job, we take it as long as the salary meets our needs. If we win the lottery, all of a sudden we’re off on a luxurious vacation. If we get laid off, we’re forced to reevaluate our spending habits. Across America, money either makes or breaks us.

 

The concept of money is the same in the AI space. When larger corporations have the funds to invest in AI technology, most of the time they gain a competitive edge. On the flip side, however, if such firms do not have the funds, they risk falling short of innovation.

 

For many U.S. corporations, that is exactly where the challenge lies. 

 

AI for Tech Giants

 

With OpenAI recently launching a high-end enterprise service offering custom AI deployments starting at $10 million, this shift now allows tech giants to stay ahead of the AI game. But for small and mid-sized firms, it is a costly fee that divides those who can afford cutting-edge AI and those who can’t. 

 

So the critical question becomes: What happens to the ones that do not have $10 million to spend?

 

The truth is, small startups have it especially hard. They do not have the scale to make ends meet, nor do they have the recognition to remain relevant. More often than not, they are outshined by household names that can outspend in order to evolve.

 

According to recent data from CNBC, the real numbers put that idea into perspective. For companies like Meta, Amazon, Alphabet, and Microsoft, they plan to spend as much as $320 billion in AI technology this year. For Amazon specifically, the large corporation intends to invest over $100 billion in AI, which will go toward its web services division.

 

Those figures highlight just how far the financial gap in AI really is. While major players get to partake, the smaller ones don’t have the same resources to keep up.

 

Where Strategy Counts

 

Yet, even in this dilemma, this is where organizations outside of the Fortune 100 have a unique opportunity. Because they run smaller, they can move quicker, pivot better, and adapt strategies without the heavy attention that often slows larger firms. Unlike enterprises saturated by public opinion, small firms can identify problems more efficiently and deploy practical, low-cost AI tools that make a measurable difference.

Jon Nordmark and Brian Sathianathan, co-founders of Iterate.ai, also agree the key to AI success is not simply in size alone, but how corporations can outsmart the system. This might look like:

• • Focusing on the niche strengths that set the corporation apart. While small firms might not have the money, they can leverage the specific qualities that make them stand out. A company that specializes in one segment can tailor AI to that audience, offering something personalized that large scale-AI cannot.

• Using better suited tools designed to meet long-term goals. Instead of investing millions into the latest AI models, smaller firms can tap into more resourceful options that actually align with daily operations.

• Prioritizing human intelligence to drive creativity, integrity, and authenticity. Smaller companies can train employees to use AI effectively, building strategies that put the people first, even when the AI budget lacks.
• Forming strategic partnerships to maximize potential. By collaborating with other experts in the field, this can reduce costs and bring in diverse perspectives. Having this level of insight keeps smaller companies ahead of the innovation.

Even when AI is designed for the bigger players, that doesn’t mean AI is completely out of reach for the smaller companies. What really matters is how companies can strategize intentionally, regardless of how the money is spent.

So while OpenAI’s $10 million requirement sounds intimidating, it might actually position those less known in a better trajectory. They’ll have the advantage of shifting gears and re-evaluating in order to play better.

Most importantly, while money might make this world go round, this next generation of AI might prove otherwise. The greatest won’t be the ones that have millions. It will be the ones that truly act with purpose.