{"id":8377,"date":"2025-02-14T15:45:04","date_gmt":"2025-02-14T20:45:04","guid":{"rendered":"https:\/\/pagely-test.frontdoor.godaddy.com\/ventureforward\/?p=8377"},"modified":"2026-06-19T13:05:20","modified_gmt":"2026-06-19T20:05:20","slug":"how-ai-is-amplifying-small-business-impact-on-local-economies","status":"publish","type":"post","link":"https:\/\/www.godaddy.com\/research\/how-ai-is-amplifying-small-business-impact-on-local-economies\/","title":{"rendered":"How AI is Amplifying Small Business Impact on Local Economies"},"content":{"rendered":"\n<p>2024 saw a huge leap in the adoption of AI and the rollout of new tools, which led to surges in the number of new websites coming online. In partnership with UCLA Anderson economists, the GoDaddy Venture Forward research team sought to understand and, for the first time, quantify the impact that AI and specifically GoDaddy Airo had on local economic outcomes thanks to small businesses. <strong>This analysis revealed a correlation between the higher number of customer websites created since GoDaddy Airo\u2019s rollout and both an increase in jobs created and a reduction in unemployment at the local level.<\/strong><\/p>\n\n\n\n<p>In a world where artificial intelligence (AI) is often portrayed as a looming threat to jobs, a new narrative has emerged, one that highlights AI as a catalyst for job creation and economic growth, and directly because of small and microbusinesses.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>New Research Separates Conjecture from Real Impact with AI and Small Businesses<\/strong>&nbsp;<\/h4>\n\n\n\n<p>Throughout 2024, AI captured headlines with predictions about its transformative potential for big business. However, GoDaddy&#8217;s latest analysis shifts the focus to the real-world economic outcomes AI is delivering for small businesses. The introduction of GoDaddy&#8217;s AI-powered experience, <a href=\"https:\/\/www.godaddy.com\/airo\" data-eid=\"comms.microsites.venture-forward\/link.7cedb289d29291f1dd0662c83ff59b4b\">Airo<\/a>, in 2023 has led to a surge in microbusiness activity \u2013 both in terms of publications and traffic, bringing significant economic benefits across the United States.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong><strong><strong>Small and Microbusinesses Power Economic Growth Through AI Adoption<\/strong><\/strong><\/strong><\/h4>\n\n\n\n<p>The research uncovers some compelling findings looking at November 2023-September 2024:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Job Creation:<\/strong> For every website published using GoDaddy Airo, 20 jobs were created per county. The impact varies by region, with rural counties seeing an average of 4.2 jobs, while urban counties experienced a boost of 22 jobs.<\/li>\n\n\n\n<li><strong>Economic Impact:<\/strong> The launch of 10 new GoDaddy websites per county correlated with a 0.017 percentage-point reduction in local unemployment rates.<\/li>\n\n\n\n<li><strong>Record Engagement:<\/strong> In 2024, microbusiness website activity hit an all-time high, as indicated by a 13% growth in GoDaddy&#8217;s microbusiness engagement index from January to September, as measured by UCLA Anderson, surpassing pre-pandemic levels. See Figure 1.<\/li>\n<\/ul>\n\n\n\n<p><strong>Figure 1 <\/strong>depicts microbusiness activity, indicated by website traffic\/engagement. This index grew by 14 points (13%) between January and September 2024 to an all-time high of 122, beating the previous record of 115 during the pandemic, when many small businesses were forced online.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"913\" height=\"541\" src=\"https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/01\/Fig2_2.jpg\" alt=\"\" class=\"wp-image-8384\" srcset=\"https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/01\/Fig2_2.jpg 913w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/01\/Fig2_2-768x455.jpg 768w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/01\/Fig2_2-320x190.jpg 320w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/01\/Fig2_2-120x71.jpg 120w\" sizes=\"auto, (max-width: 913px) 100vw, 913px\" \/><figcaption class=\"wp-element-caption\"><strong><em>Figure 1<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong><strong>AI Has Helped Impact Small Business<\/strong><\/strong><\/h4>\n\n\n\n<p>While the conversation around AI often centers on its potential, GoDaddy&#8217;s research highlights tangible outcomes, and mindset shifts as captured by the<a href=\"https:\/\/www.godaddy.com\/research\/explore-the-data\/annual-report-2024\/\" data-eid=\"comms.microsites.venture-forward\/link.a05027c5b62d5a17e6943b87fe2c9406\"> 2024 GoDaddy Venture Forward Annual Report<\/a>.\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Productivity and Revenue Growth<\/strong>: A significant 72% of small business owners using AI tools like GoDaddy Airo reported increased productivity, while 61% observed higher revenues in the past six months.<\/li>\n\n\n\n<li><strong>Lowered Barriers to Entry<\/strong>: The number of websites published surged since the release of AI tools like Airo. Despite these successes, 38% of microbusiness owners cited a lack of knowledge about AI signaling an opportunity for education in 2025.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong><strong><strong>2025 Will Be the Year of Further Measurable Impact<\/strong><\/strong><\/strong><\/h4>\n\n\n\n<p>As GoDaddy continues to quantify AI&#8217;s economic effects, the research sets the stage for what 2025 might bring. It&#8217;s increasingly clear that small businesses, often secondary in AI discussions, are at the forefront of driving substantial change. AI tools like GoDaddy Airo are not only enhancing online engagement but also making significant contributions to job markets and local economies.\u00a0<\/p>\n\n\n\n<p>With digital small businesses already creating an average of seven jobs per entrepreneur, AI offers an unprecedented chance to bolster national and local economic growth. As Alexandra Rosen, economist and global head of GoDaddy\u2019s Venture Forward research initiative, aptly puts it, &#8220;Economic outcomes don\u2019t happen overnight, and yet, in just under a year, GoDaddy\u2019s research with UCLA shows how small businesses using AI tools are transforming local economies through job creation. The company\u2019s own AI experience, GoDaddy Airo, empowers entrepreneurs to launch their businesses fast, create jobs, and grow local economies.&#8221;\u00a0<\/p>\n\n\n\n<p>AI adoption is not merely a competitive edge but an economic imperative. As we look to the future, GoDaddy, alongside our UCLA economic partners, is eager to further explore the widespread benefits AI brings, not just for the online presence of small businesses but for their local communities.\u00a0\u00a0<\/p>\n\n\n\n<p>We will continue to post research insights on small and microbusiness entrepreneurs, their adoption and relationship with AI, and the combined and magnified economic impact being made by this combination.\u00a0<\/p>\n\n\n\n<p>Read the full report <a href=\"https:\/\/godaddy.com\/research\/wp-content\/uploads\/2025\/01\/GoDaddyUCLA-Anderson_The-Impact-of-AI-on-Microbusinesses_20250211.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" data-eid=\"comms.microsites.venture-forward\/link.67158fe31ed533fb70118060c173af9a\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>2024 saw a huge leap in the adoption of AI and the rollout of new tools, which led to surges in the number of new websites coming online.<\/p>\n","protected":false},"author":15,"featured_media":6820,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[35],"tags":[],"class_list":["post-8377","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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