Harnessing the power of AI to support small businesses

“[The app is] easy to use, my order was processed quickly, and my order was delivered as soon as possible,” explains Rose Guanzon Maningas, a sari-sari shop owner in Bulacan, Philippines, now uses the &frnds AI-powered app to order stock with ease — saving her time, cutting costs, and spending more quality time with her family.

Unlocking opportunities through AI

Artificial intelligence (AI) is transforming how small businesses operate and compete. From streamlining operations to enhancing marketing, to improving access to capital, AI enables small businesses to save time, make informed decisions, reach more customers, and grow their revenue.

Despite AI’s potential, many small businesses — especially those in rural areas or led by women — face barriers to adoption. Limited awareness, low digital literacy, and overly complex AI solutions that don’t reflect their day-to-day realities can stand in the way.

Through a network of global partners and Innovation Funds, Mastercard Strive is working to change that — investing in practical, inclusive AI solutions that meet small businesses where they are.

Impact in action

AI supports decision-making and resilience

AI-powered tools are helping small businesses manage finances, improve daily operations, and plan for long-term growth. Across our global Mastercard Strive network, partners are using AI to simplify budgeting, enhance cybersecurity, identify cost-saving opportunities, and increase business efficiency.

• In Colombia, our partner Datasketch helped small businesses renegotiate supplier contracts and optimize staffing through AI-generated insights, saving time and money.
• In the US, 82% of small businesses reported improved operational efficiency after adopting AI tools, 54% saw a positive impact on business growth, and 48% said AI improved their cybersecurity capabilities.
• Globally, Vested Impact (VI) uses AI and over 300 million science-based and impact data points to automatically assess and quantify the ESG impact of small businesses. A user survey by VI found that 50% of its small business users would use its AI-driven ESG reports to support internal decision-making.

AI’s potential to unlock access to capital

Access to capital remains the #1 barrier to growth for small businesses globally. But, AI is revolutionizing how lenders assess and support small businesses, particularly those with limited credit histories. From smarter financial onboarding and Know Your Customer (KYC) processes, to improved loan assessment and underwriting, AI enables the use of alternative data to build a fuller picture of a business’s financial health. The result? Greater access to the capital that small businesses need to grow.

• In the Philippines, Boost Capital’s AI-enabled chatbot allows financial service providers to onboard small business customers digitally, including ID verification for KYC processes.
• In Argentina and Mexico, Nilus uses AI to assess the creditworthiness of women-led buying networks to unlock their access to short-term trade credit.
• In the EU, tilt supports small businesses to access green financing through automated data analytics. Fagura embeds its AI-powered credit-scoring widget into everyday digital tools to improve small businesses’ access to credit.

AI expands market reach and customer engagement

AI-powered tools — like chatbots as one example — are helping small businesses connect with customers in real time, personalise their marketing, and enter new markets with confidence.

• In sub-Saharan Africa, Arifu built a personalized, interactive WhatsApp chatbot that provides micro-retailers with practical guidance on digitizing operations and borrowing responsibly in six different languages.
• In the Philippines, &frnds is developing an AI-enabled ordering solution for women micro-retailers, designed specifically for first-time users with limited digital experience.
• In Vietnam, SoBanHang uses an AI chatbot to support small businesses with cross-border product procurement that recommends products, answers market data questions, and prepares and confirms orders.

AI boosts learning and compliance

Navigating complex regulatory environments can be daunting. AI-powered tools are helping small businesses better understand and meet requirements — from environmental, social, and governance impact reporting to financial compliance.

• In India, Mann Deshi Foundation introduced an AI-powered WhatsApp chatbot in the Marathi language that delivers easy, on-demand access to financial and digital literacy content to women entrepreneurs.
• In the EU, Ragna’s conversational AI tool supports small businesses to navigate environmental sustainability by offering best practices on regulations and tailored guidance on how to plan, track, and report sustainability efforts.
• Globally, 42% of Vested Impact’s small business customers would use the platform’s AI-driven ESG reports to meet regulatory demands.

Lessons learned

Start with simplicity

AI doesn’t have to be complex to be powerful. Mastercard Strive partners have found that simple, user-friendly interfaces lead to better adoption — especially among small businesses with limited digital experience. Datasketch, for example, prioritized enhancing chatbot features over building complex dashboards.

Keep humans in the loop

AI should enhance, not replace, human relationships. Mastercard Strive partners like &frnds and Vested Impact incorporate human checks, redress mechanisms, and transparent design to build trust and accountability throughout the AI experience.

Build for local realities

Localization is critical. From blending Tagalog and English in the Philippines to supporting niche retail sectors in Colombia, AI tools are most effective when tailored to the needs, languages, and environments of the communities they serve.

Moving forward

As AI continues to evolve, it’s critical that small businesses are part of the journey. Mastercard Strive is committed to developing inclusive, human-centered AI solutions that fuel sustainable economic growth and resilience for small businesses globally. By investing in local partnerships, innovation, and a deep understanding of small business realities, we’re helping unlock the potential of AI for small businesses everywhere.

Learn more at strivecommunity.org